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Athlone power station tender set aside

The Western Cape High Court has set aside the award of a tender for the decommissioning of the defunct Athlone Power Station. This was because Aurecon was involved in pre-feasibility studies of the redevelopment of the site, precluding it in terms of the city’s supply chain management regulations from tendering for the contract. “The fact that the respondent was allowed to bid and that its bid was not rejected at the outset, rendered the procurement process unfair and constitutes grounds for review,” said Judge James Yekiso. The city brought a review application asking the court to set aside its own decision awarding the R9.7 million (excluding VAT) tender to Aurecon.

The Athlone towers were demolished in August 2010 and the tender for the decommissioning was awarded on October 31, 2011. At a council meeting on August 29, the following year, however, the ANC leadership in the council levelled allegations of corruption in the tender process. The city had forensic auditors Ernst & Young investigate. According to the judgment, city officials had identified several alleged irregularities based on their report. Among them was that the final scope of work that formed part of the bid specification for the tender could be traced directly to a draft scope of work Aurecon had prepared.

In addition to setting aside the tender award, Judge Yekiso set aside any contract that may have come into existence between the city and Aurecon as a result of the award. He also dismissed a counter-claim by Aurecon. ANC chief whip in council, Xolani Sotashe said there had to be more digging into companies the city appointed.

Source: www.iol.co.za

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Athlone power station tender set aside

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