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City language tender 'inflated by 560% didn't specify number of delegates to be trained'

The City has launched an investigation into alleged irregularities in awarding a language training tender.

This after the owner of Eden Language Academy, Marie Smalberger, raised concerns, saying the tender awarded to Zimele Technologies in May last year catapulted the price per learner from about R1 600 for a course to R8 969 (560% more). The tender, valid for three years, carries a price escalation of around 50 percent above inflation.

“The bid specifications also did not specify the number of delegates to be trained which is highly irregular,” she said. “HR Corporate pushed ahead with the award despite strong objections by the other HR departments of the City. This inflated price impacts heavily on staff training budgets.”

She said the City’s business intelligence report carried a complete record of all previous language training providers and prices tendered. She claimed the supply chain management and procurement team appeared to have ignored this vital information, which would have revealed that past prices for language tenders were in the region of R1600 a learner.

She said the tender was instead awarded at R8969 a person, with an annual increase of approximately 10%. “The procurement team should have re-advertised this tender after receiving bidding responses that were not positive, but they did not. A tender’s sole purpose is to obtain the highest quality at the best price.”

She said her company did not tender as she was not aware that such a tender was out at the time because it was advertised on the tender platform instead of the usual request for quotation (RFQ) platform (for smaller amounts).

Deputy mayor and Mayco member for finance Ian Neilson said: “This matter has been referred for further investigation. The outcome of this investigation will determine whether there are grounds for the city manager to invoke his powers to review the contract award. This is, however, a legal process which will take time.”

Nielsen said the City’s supply chain management was based on the three-committee system as legislated. “The Bid Specification Committee compiled specifications which were then duly advertised. The Bid Evaluation Committee evaluates the bids received and recommends the outcome to the Bid Adjudication Committee for award.”

He said the basis of the tender was that it put in contingency plans so that when departments needed training, separate tenders or RFQs did not have to be advertised each time.

Source: www.iol.co.za

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City language tender 'inflated by 560% didn't specify number of delegates to be trained'

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