Fraud & Corruption in Construction - Company Bust

Gauteng to cancel R88.8m construction tender

Pretoria - Gauteng MEC for Infrastructure Development Nandi Mayathula-Khoza will take action to set aside an R88.8-million tender, which was awarded to a construction company through a flawed appointment process.

The tender was awarded to a construction company to demolish and construct new offices for the Transport Operating Licensing and Administration Board in Pretoria.

The tender was awarded by the Department of Infrastructure Development and the contract was concluded in December.

"Officials from the Department of Roads and Transport made written submissions alleging that supply chain management procedures were not adhered to during the bid evaluation process," the provincial Department of Infrastructure Development spokesperson, Athi Geleba, said.

Roads and Transport MEC Ismail Vadi reported the matter in terms of the Public Finance Management Act and the Gauteng Treasury conducted an independent investigation.

"The investigation found that the time allocated for both the technical and bid evaluations was so limited that it compromised the process to an extent that it could not be said to be fair and transparent," Geleba said.

The probe also found that the minutes and the evaluation report of the Bid Evaluation Committee were not confirmed by members of the committee before they were submitted to the Departmental Acquisition Committee for a final award decision.

The forensic report recommended that government commence with legal action to set aside the tender awarded to the construction company and institute disciplinary action against officials identified in the report.

The departments also had to assist the police with their investigations into the matter. In future, tender processes had to be properly planned, with adequate time allocated for advertisement, evaluation, adjudication and awarding of the tender.

"MEC Mayathula-Khoza said that her department will act on these recommendations and institute the necessary corrective measures," she said.