Controversial Tshwane contractor GladAfrica has distanced itself from any misconduct in the irregular awarding of a multimillion-rand tender, stating that although its deal with the city would end soon, it had done nothing wrong.
Tshwane mayor Stevens Mokgalapa announced yesterday that it was mutually agreed between the city and GladAfrica to terminate the contract, which has milked the city of more than R495 million in the last 15 months.
The contract termination would take effect from June 30 but a further R250 million was anticipated to be paid by the end of the 2018-19 financial year.
“I will also ask council to establish a financial misconduct board so it can consider all associated material that led to the conclusion of the GladAfrica contract and make recommendations to council as to the steps to follow to ensure that officials responsible are appropriately dealt with within the prescripts of Tshwane policy and the rule of law.
“For the last few months, the administration has grappled with challenges pertaining to the GladAfrica contract.”
The auditor-general found earlier this year that the contract was irregularly awarded, holding city manager Moeketsi Mosola accountable for the blunder.
Former mayor Solly Msimanga was also found to be at fault as he inefficiently oversaw the duties and responsibilities of Mosola. Mokgalapa said he held a professional and cordial relationship with the city manager, but that Mosola’s future was dependent on the financial misconduct board’s recommendations.
GladAfrica distanced itself from the irregularity of the contract, stating it had followed all requirements according to the municipality’s supply chain regulations and the Municipal Finance Management Act.
“We maintain our initial stance on the matter – that GladAfrica project manager was appointed after a rigorous selection process that looked at, among other things, our capacity to deliver on the project,” the company said in a statement.
In August last year the company decided to step away should it be found the deal was non-compliant.
“The board took a decision that should any aspect of the bidding process be found to be non-compliant with the municipality’s supply chain regulations and the Municipal Finance Management Act, GladAfrica project managers should seek to have the relationship reviewed.”