Tshwane defends tender extensions flagged as irregular

The metro has defended the extension of several tenders that resulted in more than R336-million in irregular expenditure, insisting that the processes followed were lawful and transparent.

According to metro spokesperson, Lindela Mashigo while the figure may appear alarming, the city ensured compliance with procurement laws when extending the contracts.

“The extension of the tenders was carried out in full compliance with the applicable procurement laws and regulations,” said Mashigo.

He explained that these matters were proactively disclosed and reported under irregular expenditure to allow for robust oversight and scrutiny by governance structures, including the Municipal Public Accounts Committee (MPAC).

Mashigo said delays in the tendering process contributed to the extensions.

“Technical specification reviews and probity (integrity) audits prolonged the advertising of tenders, forcing the city to extend contracts to ensure continuity of services.”

He emphasised that while such delays contributed to the ‘irregular expenditure’ classification, they did not involve corruption or unauthorised spending.

“The metro got value for money in the sense that contracts were extended beyond their term and all contracted services were executed,” he said.

The metro has introduced stricter oversight measures to prevent similar occurrences.

According to Mashigo, a new probity system has been put in place, requiring the Group Audit and Risk Department to conduct independent audits of all tenders before they are awarded.

“This ‘second pair of eyes’ aims to strengthen compliance, promote fairness and accountability, and safeguard against irregularities.”

Mashigo also acknowledged that stronger planning could have minimised the need for extensions.

He said improved procurement planning processes, stricter adherence to timelines and enhanced contract management would form part of reforms going forward.

Mashigo added that all irregular expenditure is subject to forensic investigation to determine whether any officials were implicated, and that disciplinary action will follow where necessary.

He assured residents that, despite the classification of the expenditure as irregular, service delivery was not compromised.

“The amounts disclosed on the financial statements are a true reflection of the value.

“Residents can be assured that the city remains committed to transparency and responsible financial management,” he said.

However, according to opposition parties, the tenders were extended without following proper procedures.

Freedom Front Plus finance spokesperson Mark Surgeon described the findings as alarming, saying they highlighted systemic failures in Tshwane’s financial management.

“Municipal officials are not following the requirements set out in the MFMA when appointing tenders.

“Vital steps are being missed, and information is being excluded from tender documents,” Surgeon said.

He warned that the irregularities not only pointed to corruption, but also directly threatened service delivery.

“This frequently leads to failed contracts, cost overruns, and residents receiving fewer services while paying more. The administration, which manages bid adjudication from start to finish, must be held accountable,” he added.

Surgeon said the council was often only informed of discrepancies after financial damage had already occurred.

“When officials ignore procedures, corruption is more likely. Information that can incriminate officials or connected contractors is often deliberately left out,” he said.

The Democratic Alliance echoed these concerns, pointing specifically to R170-million in irregular expenditure linked to a tender for security services.

DA finance spokesperson Jacqui Uys alleged that Triotic Protection Services, the company that benefitted from the extended tender, was connected to a senior metro official.

She added that while her party welcomed the declaration and investigation of the irregular expenditure, the episode highlighted a recurring problem.

“It is once again indicative of the nature of this ANC-led administration, where matters are hidden and not treated procedurally until they are forced into the public eye,” she said.

Opposition parties have called for stronger political oversight and accountability, warning that Tshwane’s financial system will remain vulnerable without significant reform.

“If officials can continually get away with failing to follow the MFMA, the city will never resolve these systemic problems. Corrupt or incompetent officials must be held accountable,” Surgeon stressed.

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