The Newcastle municipality did not respond regarding the allegations. Picture: Sihle Mavuso/IOL
Newcastle - The IFP-led Newcastle Local Municipality in KZN is under fire after it emerged that it awarded a R43 million tender to build water infrastructure at Charlestown without following due tendering processes.
The diversion of the tender from another company which got it during the tumultuous reign of the ANC was only known when ABSA wrote to the municipality asking for documents to back up the claims that the company will work on the project.
Charlestown is the place where recently the bodyguards of Mayor Xolani Dube opened fire and injured residents who were protesting over days of water shortage.
Regarding the tender, it all started in August 2021, a few months before the local government elections held that year when the ANC-led government awarded the tender to Ukuza Consulting (Pty) Ltd.
NEWS: The IFP-led Newcastle local municipality in KZN is under fire after it emerged that it awarded a R43 million tender to build water infrastructure at Charlestown without following due processes. The diversion of the tender from another company which got it during the pic.twitter.com/sUXQErx4SN
— Sihle Mavuso (@ZANewsFlash) June 9, 2023
An internal paper trail seen by IOL shows that almost all processes were duly followed and the company got the tender.
However, the scope and the amount to be paid to the company were never stated in the tender award letter.
The company was given 12 months to complete the much-needed water project.
“Payments due to you will only be made once all contractual documentation are in order in which document may include, but not limited to, the provision of guarantees, insurances, signing of the service level agreement,” reads part of the letter which was signed by the then acting Municipal Manager, Vish Govender on August 23, 2021.
All was quiet with the tender until July 2022 when the municipality awarded the same tender to a company called Pro Afrika LED Consortium (Pty) Ltd.
“Concerning the finalisation of the service level agreement subsequent to our negotiations, the final order draft agreement will be made available to you on or before the close of business tomorrow, 28 July 2022,” wrote the acting municipal manager, Zamani Mcineka to Pro Afrika.
In September of the same year, Mcineka sent a letter of appointment to Pro Afrika and advised that the tender is for R43 million.
“The value of the project being R43 500 000 00 (forty-three million five hundred thousand rands only).
“The nature of the project is ‘Turnkey’, thus requiring you to design and implement the project until commissioning and transferring it to the municipality prior to your remuneration based on the agreed value of the project,” Mcineka told Pro Afrika.
The company then approached Absa Bank for funding to undertake the mammoth project, but the bank smelled a rat when no supporting documents were provided during the application process.
It then wrote to the municipality asking it to confirm the claim of the company that it has been awarded the tender.
The bank’s official identified as Lucky Mabunde, a specialist enterprise and supplier development, KZN, wrote to Mcineka and asked him to validate the tender.
“Good day Zamani,
“Kindly assist and validate the above attached contracts awarded to your supplier, confirm the following on validation:
“Validate the name of the supplier that was awarded the contract.
“Validate the amount of the contract value.
“Validate the contract period.
“Validate the start or commencement date of the contract.
“Provide any latest progress report of the project, any payment certificate done for any claim of work done, level of % to completion to date, amount still outstanding on the contract value.
“Any handover certificate issued to supplier,” Mabunde requested in his letter.
Based on the trail of communication, it is not clear whether Mcineka provided the requested documents
What is not clear for now is whether Pro Afrika has started working on the Charlestown site or not.
Repeated attempts to get a comment from the municipality regarding the matter yielded no positive response.
sihle.mavuso@inl.co.za
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