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Move to blacklist errant businesses

In an attempt to combat shoddy workmanship and tighten supply chain management controls, the eThekwini Municipality has finally established a committee to blacklist errant businesses and prevent them from doing work for the city. The city introduced a draft blacklisting policy in January 2011 to deal with fronting, misrepresentation, tender collusion and the non-performance of those tendering for business. The policy stipulates that tenderers blacklisted by the municipality or listed on the National Treasury’s register of contract defaulters would not be allowed to bid for work during the period of disqualification, determined by the seriousness of the offence.

Non-performance was also listed as grounds for blacklisting. This includes failing to perform at all, not completing work in time, shoddy workmanship, the use of substandard materials, or being in breach of a material term of a contract. City manager Sbu Sithole said the committee was established about a month ago and would have quarterly meetings. He said city officials, who were not part of the supply chain management department, had been appointed to the committee. Sithole added that companies referred to the committee would be given the opportunity to provide reasons why they should not be blacklisted before a decision was taken. He said the exco committee, the municipal public accounts committee or officials could refer companies to the committee.

One of the first companies the committee will have to deal with is Shikani Trading, which abandoned a R2.3 million project in Folweni, south of Durban, in October last year. The company, which was awarded the contract in December 2011, claimed it was forced to withdraw because of late payments from the city. The company was referred to the committee after deputy mayor Nomvuso Shabalala said at an exco meeting that the company had previously withdrawn from another contract. “It is concerning to me that this is the same contractor withdrawing a second time. We have to look into how this company is working and why it is still getting contracts from the city,” Shabalala said.

Former DA exco member Tex Collins said he was also concerned because the withdrawal meant the project would now cost an additional R1m to complete. The contract will now have to be completed using Section 36 of the supply chain management process which deviates from normal public tender processes and the city will have to get quotes from contractors for the completion of the work.

Source: www.iol.co.za

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Move to blacklist errant businesses

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