Durban - eThekwini city officials will face a barrage of tough questions from the council’s incoming councillors over the city's dishing out of R8.1 million in contracts for the Moses Mabhida Stadium at the last minute through the controversial Section 36 procurement regulation.
Matters will be compounded by the city's seemingly disregarding a council resolution to merge the stadium’s management with that of Durban’s ICC.
A June schedule of contracts awarded reveals how they splurged R8.1 million on 15 service providers at the stadium.
The remarks section of the document states that the contracts were awarded through the regulation after “it being considered impractical to follow the official procurement process”.
The contracts include the provision of cleaning, security, lift maintenance, technology solutions, media, beverage and other services.
City communications head Tozi Mthethwa said the six-month “preliminary” contracts were awarded “in order for the services being provided not to lapse”. Defending the expenditure, she said: “The use of Section 36 is allowed according to the Municipal Finance Management Act No 56 of 2003”.
This is in the midst of confusion over the stadium’s management.
On November 24 last year, the outgoing executive committee, mandated by the full council, approved the integration of the Moses Mabhida Stadium management and that of the ICC. However, The Mercury understands that ANC eThekwini region chairwoman and incoming mayor Zandile Gumede, who was against the merger, overruled the decision.
City Hall sources, who cannot be identified for fear of reprisal, said: “Gumede said the merger should not happen, for reasons known only to her and the ANC.
” With Gumede’s adversaries dislodged, she said, “the decision will be overturned ... It’s ridiculous, really”.
A city statement in November last year confirmed the decision to merge the management of the facilities.
“Incorporating the stadium under the ICC was considered the most appropriate governance and management model as it would give the opportunity to maximise on all potential income streams,” it read.
Mthethwa appeared to backtrack this week on the decision to move, saying the matter had not been finalised. “It will be discussed when executive committee meetings resume,” she said.
Opposition parties are rolling up their sleeves and preparing to tussle with the largely new eThekwini caucus. IFP councillor Mdu Nkosi said the party would demand “explanations” from city manager S'bu Sithole when the new council term began this month.
“I understand with SAB (alcoholic beverage supplier), because there’s no service provider. But with cleaning services, security and the likes, the city should go on tender ... unless the contracts were not advertised on time, as they should be.” His party would put tough questions to Sithole.
DA provincial and eThekwini caucus leader Zwakele Mncwango said he had recently raised the issue of “the sudden abuse” of the Section 36 regulation as the term ended. About the stadium’s management, he said: “The matter has been finalised in council last year... It is nonsense that exco must still discuss the matter.” He accused the city of “defying” a council decision.
“Powers were delegated to exco for it to make the final decision, but council had approved the merger in principle. Exco subsequently approved the merger. It needs to be implemented.”
The Mercury