Pilgrim’s tenders illegal says Thuli

PILGRIM’S REST – Eigtheen months after 17 businesses in town were served with eviction notices, the Public Protector (PP) has declared that the tender process which put them in this situation was unlawful.

On December 19 the long-awaited report on an investigation into maladministration by the Mpumalanga Department of Public Works, Roads and Transport (DPWRT) in respect of shop lease tenders in this historic town was made public. Titled “Poisoned Processes”, the report details why the HOD, Mr Kgopana Mathew Mohlasedi, has been directed to cancel the awarding of the contracts for the new shop leases. “The process was characterised by gross irregularities and maladministration,” according to the PP, Adv Thuli Madonsela.

Advocate Anton Alberts lodged a complaint against the DPWRT on July 6, 2012. On June 29, 2012 owners of 17 shops were served with notices of 30 days before eviction.

Madonsela also directed the department to start a new tender process. The department must respond to the report by January 22 and submit its remedial plans by the end of the month.

Read the initial report on the tenders here.

Matters investigated by the office of the PP

Six irregularities and improper conduct with regard to eviction notices were found after the investigation, namely:

1. The bid-specification committee made decisions without the requisite 60 per cent quorum. Initial records by the department indicate that six bid-specification committee members were appointed. Decisions were, however, made with only three members present. The DPWRT argues that only five members were ever appointed.

2. A bidder, Mangwanyane Tading, was awarded a high score for the Highwayman’s Garage while different tender amounts were provided in the various requisite documents. The tender documents show Mangwanyane’s bid of R10 416 per month. The bid-evaluation committee (BEC) recommended Mangwanyane based that on an indicated R19 100 per month. The appointment letter signed by the HOD, once again, stated a bid amount of R10 416 per month, lower than four others.

3. Due diligence was not exercised in assessing the functionality and sustainability of the preferred bidders.

4. The letter of appointment for Highwayman’s Garage is suspected of being fraudulent due to the bid amount approved differing from the one on this document.

5. Evaluation criteria were changed without any good reason. Four bids were advertised in terms of a 90/10 (price/BBEE) ratio but subsequently, during the process, changed to an 80/20 ratio. According to the department, this was because the bids received were below the 90/10 threshold of R500 000. This the PP found this to be untrue, with only one of the contracts with a value below R1 million for the contract period.

6. Accurate, complete and current meeting records were not kept according to legal requirements. There were various discrepancies surrounding the number of attendees at several of the meetings of the BEC and bid-adjudication (BAC) committees. In certain instances, signatures were absent from the declaration of interest forms. The department, for example, submitted two conflicting attendance registers for one meeting.

A total of 22 bids were received, 17 were awarded to new businesses and the rest re-awarded to current operators at the time. Mangwanyane Trading, Matletle Construction and Timbhulu Construction and Projects were awarded 2, 5 and three leases respectively.

Ms Susan and Rachel Khoza are sisters and the owners of Matlele and Timbhulu respectively. Representatives from Mangwanyane Trading approached the owner of the Highwayman’s Garage, Mr Marius Brummer, soon after being awarded the lease contract for this business. According to Brummer they wanted to sell the rights back to him at an escalated price. Mangwanyane was also awarded Scott’s Cafe. Matlele Construciton was awarded contracts for Mrs Mac’s Shop, Pilgrim’s Pantry, the golf course, The Daisy and the caravan park, while Timbhulu could lease The Vine, Chaitos, and Mona Cottage.

Scott’s Cafe

Reactions to the report

Ms Sherry Goodwin, a business owner in town, said that although members of the local business chamber are satisfied with the findings of the report, they are still uncertain about what this means for them. She said that many of the shops had closed their doors in the interim and that there are currently 15 in operation. She believed that most of these would submit tender bids again.

Mr Calvin Mashele, who completed the bid documents on behalf of the Khozas told Lowvelder on Wednesday that they have not been contacted by the department yet and are not aware of the outcome of the report.

Brummer had sold his business and has moved to another town.

“The FF Plus is delighted that the report has uncovered the truth,” spokesperson Mr Anton Alberts said in a statement.

Goodwin also said that the R15 million the department had spent on renovation in town over the past year seems to have paid off, with tourist numbers higher in December 2013 than the previous year.

According to Mr David Nkambula, spokesman for the DPWRT, they were still in the process of studying the report and will comment on the findings and whether disciplinary action would be taken against any officials as soon as this process is complete. Madonsela stated that “effective and disciplinary steps have to be taken against any official of the department who made or permitted ftruitless and wasteful expenditure”.