Business forum storms Mhlathuze water board offices over R36 million security tender

Mhlathuze water board staff are living in fear after members of an aggrieved business forum stormed their offices in central Richards Bay on Friday, holding staff and the entity’s CEO hostage for hours.

The King Cetshwayo district business forum is fighting the entity's decision to re-appoint a new supplier for a R36 million security tender to guard critical water pumps around the City of Umhlathuze (Richards Bay-Empangeni). The entity is said to have appointed another company for the service.

Among the pumps that need guarding is the one on Alkantstrand beach which supplies most of the city’s beachfront with fresh water. The forum gave the troubled water board an ultimatum to review its decision by Wednesday, or else it would face its wrath. Among their demands, they want the new supplier to be removed.

According to information obtained by IOL, the business forum stormed the offices around 1pm and staff were only able to leave around 5.30pm. This was after there were heated negotiations where it is said members of the forum were overhead banging tables in the boardroom where they met with the top brass of the entity.

IOL understands the board has since decided to re-advertise the tender this week The tender was allegedly won by a company which it was viewed with suspicion after it was alleged that its owners were close to former CEO Mthokozisi Duze, who parted with the entity last year. It was alleged that the winning company fared very well when it submitted its papers, but the entity decided to exercise its right not to award and brought in a company from the Richards Bay Industrial Development Zone, another state-owned company within the city.

“That angered the forum which decided to storm our offices to demand answers and demand that the tender should be awarded to the company that won. That is where the matter is now and they said they would come back on Wednesday to meet with the management. That has left staff afraid that when they come back there might be bloodshed since most of the people came here dangling guns and appeared prepared to fight,” said a source from the water board.

In response to a query from IOL on Tuesday, a Mhlathuze water board official, who asked not to be named out of fear, denied that the tender had been awarded to any supplier. Mhlathuze Water has not awarded a security tender. A process is currently underway to invite prospective bidders to render security services at certain Mhlathuze Water operations,” it said. It added that it has reported the matter to law enforcement agencies while it is still in talks with the forum.

“The incident was reported to law enforcement authorities. We have also endeavoured to engage with the forum to understand its concerns. “However, we have stressed that this must be within the bounds of the law and in a manner that neither jeopardises the safety of our staff nor our assets,” the water board added. Meanwhile, another business forum is threatening the operations of the water board in the Umkhanyakude district where it is working on a much-needed water project for the people of Jozini.