Durban - The opposition in the eThekwini Municipality objected at an executive committee meeting when it emerged that the city had awarded a R51 million contract to a PR company to market and brand the Go!Durban transport network - despite having its own communications unit.
According to a monthly report on the contracts awarded by the city for March, the city awarded public relations firm, Ogilvy & Mather, a R51 587 458 contract over three years for “marketing, branding and communication services for the new integrated rapid public transport network within eThekwini”.
DA caucus leader, Zwakele Mncwango, said it was a waste of money when the city employed a large communication team that could easily market and brand the Go!Durban project.
He called the communications unit “useless”, much to the ire of city manager, S’bu Sithole.
“We are always talking about cost cutting and saving the city money.
“This is an example where we can cost cut.
“We have our own communication department.
“With the amount of money, R51 million, we can (market) the whole city for that price,” Mncwango said.
The eThekwini’s communications department has a full-time staff complement of more than 20.
It provides public relations, graphic design, speech writing and media liaison.
Speaker Logie Naidoo said it was not surprising that the opposition was complaining about the price of the contract.
“My issue with this is that it was awarded to a white enterprise which you don’t see them (opposition) complaining about,” he said.
Sithole said that spending on Go!Durban, including communications, had been budgeted for.
He said that with the next phase of the project due to be implemented, it was important to market and brand it.
“We do use our internal unit where necessary, but there are things that we need help on.
“I don’t want anyone to have the mistaken view that there is no cost cutting going on in the city.
“There is serious cost cutting happening. In fact, the amount you are seeing was much higher than what you see before you now,” he said.
The contract is the second three-year deal awarded to Oglivy.
The company was awarded a R48.5m contract over the past three years and the recent award is a roll-over of the first contract after the company met its benchmarks agreed on in the first three years.
Mark Zeller, spokesman for Oglivy, said the tender was awarded to the agency in January 2013.
“In line with the scope of work outlined in this tender submission, the services by Ogilvy & Mather Durban were valued at R151 093 962.
“Following the city’s supply chain management policies, the city entered into a negotiation process with us, and a final amount of R100m (including VAT) was agreed upon.
“This total amount stipulated in the submission included all costs including, but not limited to, agency fees, production and media buying. With this in mind, the value is for a period of six years, which is made up of two separate three-year phases - commencing in January 2013 - with the second phase being subject to delivery of stringent key performance benchmarks set by the city,” he said.
Zeller said the city awarded this - according to the original tender agreement - again to Ogilvy & Mather, based on it successfully meeting those benchmarks.
Daily News