A security tender worth R350 million is under scrutiny in the DA-led city of Cape Town, the Sunday Times reported.
The tender went out in March last year and was awarded in October to 22 companies.
Four separate lists of successful bidders were issued before the tender was cancelled this year after unsuccessful bidders complained to the council, the weekly reported.
At least one successful bidder was not registered with the private security industry regulator, according to the paper. In addition, two of the successful companies featured members from the same family.
Mgebe Security Services, an unsuccessful bidder, alleged that one successful company used a church building as its company address, and that only four of the 22 successful companies were black-owned.
The tender involved 22 contracts for guarding more than 1000 sites, including government buildings, clinics, libraries and community halls.
Deputy mayor Ian Neilson confirmed to the paper he was aware of difficulties with the contract. He said he was awaiting feedback on the reasons for the cancellation of the tender. - Sapa