Airport TV tender ‘irregular and unfair’

011 28.10.2013 Big tender with about millions on TV screens at OR Tambo International Airport. Picture: Itumeleng English

011 28.10.2013 Big tender with about millions on TV screens at OR Tambo International Airport. Picture: Itumeleng English

Published Nov 8, 2013

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Johannesburg - A multimillion-rand deal to supply content to TV channels at airports around South Africa did not go through a proper tender process, and an airport manager who helped negotiate the deal went to work for the winning contractor soon afterwards.

In February last year, an advertising concession agreement was signed between Airports Company South Africa (Acsa) and a company called Provantage. The agreement was for the provision of the management of Airport TV for all Acsa airports. Provantage approached Acsa, offering it the integrated network, and Acsa accepted the unsolicited bid.

The contract amounted to a total projected revenue of R216 million over five years.

On its website, Provantage says that in April last year, in association with Acsa, it launched Airport.tv, a live digital television network.

“Collectively there are more than 400 digital screens placed throughout these busy airport zones.”

An investigation was done by OR Tambo International Airport procurement into the contract.

Its report found that “the award of the corporate tender board and concession agreement (should) be rescinded as it is unconstitutional, irregular, unfair, unequitable, uncompetitive and not cost-effective”.

It found there was non-compliance with Acsa policies, non-compliance with regulations and possible collusion and conflict of interest. It also found the bid was not exceptional or unique.

The investigations questioned the role of then advertising manager at OR Tambo International Airport, Mzukisi Deliwe, who left Acsa to work as the general manager of airport advertising at Provantage.

The report indicates this may be a conflict of interest as Deliwe submitted the transaction and, when his contract came to an end, he joined the concessionaire.

But Deliwe told The Star he was an independent consultant at OR Tambo International when the contract was awarded and had a short-term contract as an advertising manager at the airport. He said he had worked with Acsa since 2005 and still did work with them.

Deliwe said the accusation that his job hop was a conflict of interest was false.

A director at Provantage, Jacques du Preez, said the company dismissed the allegations with contempt. He said the Airports TV concept was unique.

“We have conceptualised a digital place-based network for Airports TV that is the best in its class globally, and nothing like this existed locally. APTV is made up of various unique elements such as software, content partnerships and a very unique sales and research methodology. The concept and APTV trademark was and remains our intellectual property,” Du Preez said.

Acsa said an investigation into the awarding of the contract was conducted, but they found no evidence of a breach in procurement processes.

Acsa said it solicited bids from several service providers, but the response was tepid. Later, it received an unsolicited proposal by Provantage that was “innovative and distinctly different”.

Acsa said group executive Haroon Jeena was instrumental in the negotiations.

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