Govan Mbeki Municipality approves security contract extension pending tender finalisation
The continuation of security services was necessary to safeguard municipal infrastructure, equipment and facilities from theft, vandalism and unlawful access, while also ensuring compliance with insurance requirements relating to the protection of municipal assets.
The Council of Govan Mbeki Municipality has approved a limited extension of the existing security services contract with MCC Security & Projects for Regions 1 and 3 for a period of three months or until the completion of the Supply Chain Management (SCM) procurement processes, whichever comes first.
Presenting the item during the council meeting held on May 27, Executive Mayor Nhlakanipho Zuma said council approval was also being sought for a variation order exceeding the 15% threshold prescribed by National Treasury regulations and the municipality’s Supply Chain Management Policy.
According to Zuma, the approval is necessary to ensure the uninterrupted provision of critical security services while outstanding procurement processes are being finalised.
“This request is made in line with Clause 27(g) of the municipality’s Supply Chain Management Policy, which provides that contracts may be expanded or varied by not more than 15% for goods and services contracts,” Zuma said.
The municipality had previously advertised a security services tender covering all three municipal regions as existing contracts were due to expire at the end of September 2025.
Following the adjudication process, MCC Security & Projects was appointed to provide security services in Region 2 for a 36-month period from October 1, 2025, to September 30, 2028.
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However, the appointment processes for Regions 1 and 3 could not be finalised within the expected timeframe due to ongoing compliance verification and SCM requirements.
To avoid disruptions and protect municipal assets, the municipality temporarily extended MCC Security & Projects’ scope of work to include Regions 1 and 3 from October 1, 2025, to December 31, 2025, or until the tender process is completed.
The municipality said the continuation of security services was necessary to safeguard municipal infrastructure, equipment and facilities from theft, vandalism and unlawful access, while also ensuring compliance with insurance requirements relating to the protection of municipal assets.
Zuma further explained that the procurement process took longer than anticipated because extensive compliance verification and due diligence checks were required to ensure that all appointments complied with legislation and SCM regulations.
Zuma also warned that finalising appointments before completing the required checks could expose the municipality to irregular expenditure and potential non-compliance with procurement legislation.
Council was informed that the standard SCM policy limits contract variations to 15% of the original contract value.
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Delays in finalising the appointment of service providers for Regions 1 and 3 resulted in the municipality exceeding the threshold, requiring council approval.
The municipality justified the request for an exemption from the 15% threshold on several grounds, including prolonged SCM processes, the need to complete compliance verification, protection of municipal assets, and mitigation of operational and insurance-related risks.
Council was also advised that failure to approve the extension could leave municipal facilities unguarded, exposing the municipality to increased risks of theft, vandalism, infrastructure damage, service delivery disruptions and possible insurance-related consequences.
Financial implications presented to the council revealed that expenditure related to the temporary extension of security services for Regions 1 and 3 amounted to R20m up to the end of April 2026.
While expenditure incurred up to that point remained within the permissible variation threshold, any further expenditure beyond May 2026 could exceed the allowable limit and potentially constitute irregular expenditure if council approval was not granted.
In approving the recommendations, council acknowledged the extension of MCC Security & Projects’ services in Regions 1 and 3, approved a further three-month extension, and authorised the variation of contract number beyond the prescribed 15% threshold to ensure continued protection of municipal infrastructure and assets while procurement processes are finalised.
