CAPE TOWN - The City awarded PricewaterhouseCoopers (PwC) a three-year contract which accumulated to over R28 million - issued by its Corporate Services department, under the management of executive director Craig Kesson, who will be joining the company as a partner next month.
The Cape Times last week reported on Kesson’s PwC appointment, after questions had been raised about transparency and a possible conflict of interest surrounding it.
Asked whether they were able to make the reports or work done by PwC public, the City declined, as “this is for internal use only per conditions with the tenderers”.
Regarding the three-year tender that was awarded to at least nine companies including PwC, the City said: “At the original specification formulation at bid initiation stage the total work for the tender was expected to be R40 million. PwC has invoiced R28 946 531,40 since 2019. The money for work comes from directorate budgets per the Council budget.
“Mr Kesson was never involved in any part of the bidding process nor in the awarding process to PwC for any tender, including 365c (the tender in question), ever. He has also never been involved in the issuing of work briefs to PwC for any tender, including 365c, nor for that matter any other organization, ever. He also has never negotiated pricing with PwC for any tender including 365c as this is the function of a Bid Evaluation Committee (BEC) where Mr Kesson has never been a representative ever.
“There was no need for Mr Kesson to recuse himself from something he was never involved in in any form. The City has no basis on which to investigate as Mr Kesson has never been involved in the procurement of services from PwC in any form whatsoever. The City wishes Mr Kesson well in his future endeavours.
While Kesson did not respond to questions by deadline, PwC said: “PwC reiterates its position that it will, in accordance with its standard practice, honour any cooling off period as may be agreed between Craig Kesson and his employer, the City of Cape Town. On joining PwC, Craig’s focus will be on providing strategic context, insights and direction within our Africa advisory practice, with specific focus on other cities across the continent. Regrettably, PwC is unable to provide any details around work performed for the City of Cape Town due to the regulatory confidentiality obligations that we are bound by.”
A source who asked to remain anonymous for fear of victimisation explained that transversal tenders were tenders where different units had access to a panel of service providers who had been approved during the tender process.
“They (the units) can then draw down on service providers for an hourly rate. Under a directorate such as Corporate Services, some of the services (work) requested could be strategic planning, coaching and leadership development, facilitation, the drafting of planning documents, Information Services and Technology (IS&T) systems etc.
“Because the statements of work are not public, there's a loss of transparency and that creates the potential for ethical lines to become blurred for what work is sold and procured by the City.”
Cape Town activist Roscoe Palm slammed Kesson and the City for the use of taxpayer money, “with no internal or external opposition, or scrutiny”.
“Craig Kesson has redistributed billions of Rands of taxpayers' money from ordinary citizens to the consultant class. He has been able to get away with this because Dan Plato is a weak mayor and Lungelo Mbandazayo is a rubber stamp of a city manager. Kesson centralised power around the Corporate Services directorate in the City with no internal or external opposition, or scrutiny. Ordinary Capetonians bear the burden of unaffordable electricity and water tariffs, while Kesson has treated Corporate Services budgets like an expense account to launder his reputation.”
Cape Times