eThekwini staff forced to award tenders due to threats

Workers in eThekwini Municipality have awarded tenders to contractors and companies that do not qualify for the work because they had been threatened. Details of the threats against city staff are contained in documents tabled before some of the city’s committees and made public in a report that came before a full council meeting last week.

The report showed city officials had awarded and even paid contractors under duress or due to fear. They claimed they had been threatened. Some of the companies awarded tenders did not qualify because they were not properly registered, it said. The awarding of these contracts was done under section 36, meaning it was an emergency procurement.

DA councillor Warren Burne highlighted two contracts approved by the city. A R24 million tender for the cleaning of taxi and bus rank ablution facilities was awarded to a company that is not properly registered and does not have a company registration number, he said. The contract was awarded in terms of section 36 as it was deemed impractical to follow the normal procurement process due to the nature of the service, “we are cleaning toilets and we have to use section 36”, he said.

The real reason for using section 36 – detailed in the document – was the risk of a hostile reception from public transport operators, he said. “ETA (eThekwini Transport Authority) has had countless threats from the industry citing that if they are not appointed, no one else will be appointed to provide these services in these facilities.”

The other item related to water and sanitation services to schools in the eThekwini region. The tender was worth R7 million and was also done in terms of section 36. “Again I read from the motivation column (which says) the reason for approving 50% of the payment was because of threats and intimidation coming from the subcontractor who wanted to be paid.

“What kind of administration are we running that those who threaten big and loud get the tenders? Mr city manager, please give some guidance as to how the municipality actually allocates tenders. We are reading the municipality’s own documents, this is intimidation – a criminal offence.”

DA councillor Emmanuel Mhlongo said: “We are very unhappy about this award as it was said this company is not registered on the central supplier database and municipal vendor portal – mandatory for companies trading with the municipality. The municipality disregarded the law and traded with the company, a serious transgression of the Municipal Finances Management Act.”

Mayor Mxolisi Kaunda said they noted the report but insisted they follow the process in awarding tenders and denied that some tenders were awarded due to threats. “If there is a need to work with the people in the (taxi or public transport industry) to clean the infrastructure that services them, we do not see any corruption there.”

He warned councillors not to stray into procurement, saying their job was oversight and they should not interfere with the awarding of tenders.