Probe into City’s ‘flawed’ tenders

Cape Town.27.02.2014. Despite the controversy over costs the City's new emblem is in use at the official exhibition stand of the City of Cape Town at this year's Design Indaba currently on at the cape Town International Convention centre. Picture Ian Landsberg

Cape Town.27.02.2014. Despite the controversy over costs the City's new emblem is in use at the official exhibition stand of the City of Cape Town at this year's Design Indaba currently on at the cape Town International Convention centre. Picture Ian Landsberg

Published Apr 27, 2015

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Carlo Petersen

A FORENSIC probe into the City’s tender bid evaluation process is under way after a civil engineering company levelled allegations of corruption against a senior official and two other companies.

John Klopper, owner of JK Structures (JKS) – a national contractor which has been operating in the sewerage and water sanitation industry for 29 years – has implicated the former head of the City’s tender bid evaluation committee and two other companies operating in the industry.

Deputy Mayor Ian Neilson yesterday confirmed the Forensic Services Department (FSD) has been mandated to conduct investigations into two tenders which formed the basis of Klopper’s corruption allegations.

He had also gone to court to challenge a third tender.

“We (JKS) have had problems in Cape Town with City officials, and a certain official, since 2004. For more than 12 years JKS has tendered for all related projects in Cape Town.

“Every tender has been rejected, but then on appeal eventually awarded,” Klopper said.

The FSD – a department separate from all line departments, including supply chain management – is probing the tenders related to Klopper’s allegations.

He alleged the two other companies had been working together with the official who had a “vested interest and corrupt relationship” with both companies.

The official had shown bias in influencing the City’s tender bid committee to award tenders to the respective companies, Klopper alleged.

Neilson said: “In respect of the first tender, they (FSD) needed to confirm certain of the issues with Mr Klopper and to ascertain whether he had any further information as they are in the process of finalising this investigation.

“With regard to the second tender, Mr Klopper undertook to provide the FSD with certain information to substantiate certain of his allegations, which was at the time of the meeting still outstanding.”

“The City can confirm that the investigation in respect of the first tender is finalised and the FSD is in the process of drafting a report,” he said.

Neilson said the probe was ongoing and that the City manager would decide on the action required once the FSD submitted its reports.

In February, Klopper obtained a high court ruling which set aside and ordered the re-evaluation of a multi- million rand tender to rehabilitate sewerage.

JKS had appealed the tender, which was awarded to another company. After he lost, he had turned to the court and won.

The court gave the City two weeks to re-evaluate the bid.

After the ruling, Neilson acknowledged the City would in future review the way it awarded tenders.

JKS was awarded the tender, but the City has not finalised the contract.

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