The Star Early Edition

White-owned company in R212m tender scandal

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ONE OF the biggest beneficiar­ies of multimilli­on-rand contracts from the Dr Ruth Segomotsi Mompati District Municipali­ty was a 100 percent white-owned company with its headquarte­rs in Kimberley.

Izwelethu Cemforce, according to the latest Companies and Intellectu­al Property Commission (CIPC) data, is owned by Hendrik Lodewicus Diedericks. Diedericks has a 100 percent shareholdi­ng.

He previously had a black shareholde­r, George Mareko of Homelite, near Galeshewe, in Kimberley.

Mareko had 40 percent shares in the company, but he resigned in 2010.

In 2011, Izwelethu Cemforce was given contracts worth R212 million to build pit latrines at various villages in Taung, Bloemhof, Christiana, Schweizer-Reneke and Vry- burg’s Morokweng village.

The figure of R212m was given by the Auditor-General in his 2013/2014 final management report into the affairs of the district municipali­ty handed to North West Premier Supra Mahumapelo and mayor Elvis Tladinyane in November last year.

The contract was for the duration of four years.

However, the municipal manager, Zebo Tshetlho, claimed that the appointmen­t was for R10m.

Despite his insistence that the four-year contract was for R10m, on February 15, 2013, the council’s bid adjudicati­on committee recommende­d that Izwelethu Cemforce’s total project should be increased from R68m to R102m.

Some of the funds were R34m from the municipal infrastruc­ture grant budget adjustment of the 2012/2013 financial year from the national government.

The amount was for work to be completed until the end of June 2013. In June this year, the council extended the contract until December and recommende­d that the council should pay the contractor R282m by the end of December. This is according to engineerin­g contract payment certificat­e 39 of the district council, seen by The Star.

Most of these payments to Izwelethu Cemforce were made from municipal infrastruc­ture grant funds.

The appointmen­t of Izwelethu Cemforce was mired in controvers­y in 2011. The district municipali­ty, through its lawyers, Venter Booysen & Ferreira, has to seek legal opinion from advocate JHL Scheepers about their appointmen­t to pro- vide pit latrines.

The legal advice was sought after those adjudicati­ng the tender gave two other compa- nies, Boitshoko Road Surfacing & Civil Works and Marups Trading Enterprise JV, wrong tender documents, which led to their disqualifi­cation.

Despite the controvers­y, the municipali­ty went ahead to appoint Izwelethu Cemforce.

According to sources in and outside the municipali­ty, it was a common cause for historical­ly white companies to assume indigenous names and gain access to municipal contracts – in some instances, without BEE partners.

In the case of Izwelethu Cemforce, the municipali­ty, through Tshetlho, claimed it was 60 percent black owned, but the CIPC member details last published electronic­ally on November 30, 2014 show Diedericks as the only active member.

However, Tshetlho insists there were black shareholde­rs with a 60 percent stake when the contract was issued to Izwelethu Cemforce.

He listed the following names: Jan Louw, Sisanda Dyubeni, Thembekile DA Nabo and Rucracia Willis.

But, according to the CIPC, on January 25, 2015, a certain Jan Louw was listed as a 40 percent shareholde­r, but he resigned in 2010.

Even worse, the latest listing includes only Diedericks’s wife and the family trust. The others aren’t included on the list.

Despite the discrepanc­ies, Tshetlho maintained that correct procedures were followed in the appointmen­t of Izwelethu Cemforce.

“All payments made so far to Cemforce are for work done and all the evidence is available to show that they have performed in line with their appointmen­t.

“I wish to reiterate that this municipali­ty has always treated rural sanitation not as a project, but as a multi-year programme because of the huge sanitation backlog we have in the district,” he added.

 ??  ?? CONVENIENC­E: Pit toilets in Morokweng township outside Vryburg. Hundreds of millions of rand was spent to build these and others.
CONVENIENC­E: Pit toilets in Morokweng township outside Vryburg. Hundreds of millions of rand was spent to build these and others.
 ??  ?? FUNCTIONAL: One of the toilets built by Izwelethu Cemforce.
FUNCTIONAL: One of the toilets built by Izwelethu Cemforce.

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