Pikitup boss R40m extension controversy

Pikitup boss Amanda Nair has added a R40 million extension to Aqua Transport Plant Hire’s contract despite a decision by the previous board not to do this. Aqua Transport Plant hire had a R263m contract which was extended. Pikitup workers ended a bitter and unprotected strike on Thursday. One of their demands was for the removal of Nair following the allegations of corruption against her. Nair was suspended by Pikitup for her alleged role in the awarding of the tender to Aqua, a firm which was implicated in fraud and corruption. She was later reinstated. Last year, Pikitup’s previous board took a decision not to give Aqua any extension following the controversy surrounding the awarding of the tender in 2012. Nair allegedly awarded the tender extension despite the bid adjudication committee questioning the decision to award a tender to a company implicated in alleged wrongdoing in a forensic probe.

“We are instructed by our board of directors to advise and place on record to your company the following material facts: Any suggestion of variation or extension of scope when the budget is available may at this stage be construed and/or is tantamount to an abuse of a supply-chain management procedure. “Notwithstanding the provisions of the relevant National Treasury Guidelines and/or current common law position, Pikitup will for a number of reasons at this juncture not consider any variations or extension of the current scope of the agreement,” read the letter written by the previous board to Aqua. However, in June, Nair apparently decided to extend the scope without consulting the board or bid adjudication committee. The Star understands that members of the board were furious when they heard about it. Pikitup spokesman Jacky Mashapu confirmed that “a variation to the Aqua contract for plant and machinery was indeed approved in June 2015, in line with the allowance of 15 percent variance on the contract price. He said this followed due process and that a competitive bidding process would start before the current contract expired.

Aqua is also under investigation by Competition Tribunal after Pikitup reported it for tender collusion with several companies. A Pikitup executive, who did not want to be named, said: “How can they give an extension to a company facing investigation by the Competition Tribunal? An extension of R40m is like giving them a whole new tender.” Pikitup chairwoman Trish Hanekom said Nair had reported the extended contract to the board. But an insider who attended the meeting, said Nair informed the board after she had granted the extension. “That is why the board was angry,” the insider said. Hanekom said in the event of a finding against any of the companies involved, the board would seek legal advice and decide whether to launch civil proceedings.