eThekwini to pay R24 million more for recycling bags due to global economic pressures

The request for the additional amount comes just a year after the contract came into effect. The contract was advertised in July 2019 and was awarded to two companies, effective from January 2021.

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Published Aug 11, 2022

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Durban - Opposition parties in eThekwini Municipality have slammed a move that would see the city fork out an additional R24 million to purchase recycling bags, saying the delivery and collection of the bags was almost non-existent.

The request for the additional amount comes just a year after the contract came into effect. The contract was advertised in July 2019 and was awarded to two companies, effective from January 2021.

The municipality recently tabled a report before council and the executive committee, for it to note the price increase for the supply and delivery of orange and clear recycling bags for 36 months.

The report said the suppliers had written to the municipality in February, requesting the price increase.

While the report was only presented to council and exco for noting as it dealt with contractual issues that councillors cannot interfere with, opposition parties raised their concerns.

The supply of the bags and the recycling programme attached to them has come under scrutiny in the past following complaints by residents who claimed they did not always get them.

“The purpose of this report is to advise the executive committee of the intention to increase contract price for the supply and delivery of orange and clear recycling bags,” said the report.

Explaining the need for the price increase, the report said: “Due to Covid-19, the world’s economy severely declined. The imported commodities are highly affected due to the volatility of the markets, imbalances on the exchange rates and other indices that directly affect the production of the recycling bags.”

It said in order to produce the bags, raw materials such as polymer were imported and the importing price had drastically increased due to effects of the pandemic, demand uncertainty, shipping restrictions and harbour backlogs.

The report also revealed that the war in Ukraine had made matters worse.

“The adjustment requested is fair and in line with market rates. In fact, eThekwini is buying the refuse bags at a lower price compared to big wholesalers and other organs of state.

“To ensure the continued supply of the recycling bags and maintenance of the environment, it will be recommended that the request for the price increase be accepted,” said the report.

The supply of the bags has, however, been erratic in the past.

Last year, a resident said in Kies Avenue and surrounding areas in Reservoir Hills, residents were not getting orange recycling bags and recycling waste left for collection was not being collected and had to be brought back into yards.

The resident said another concern was that residents were dumping their refuse at bus stops, with rubbish dumped outside the local clinic attracting rodents.

Two years ago, The Mercury reported on allegations of corruption associated with the programme.

The city was criticised after a forensic investigation revealed that a contract for the supply of orange recycling bags to the city to the tune of R90m had been awarded to a company that lacked experience and technical knowledge.

The company’s inability to handle the contract meant the city regularly ran out of bags. It was later found that even though the city cancelled the contract, money was still being paid to the company.

IFP councillor Mdu Nkosi said the IFP was uncomfortable with the entire contract, “let alone that there is this price increase”.

DA councillor Mzamo Billy said: “We have noted that the municipality has chosen to approve the increase in the purchase price of orange bags in the city. This matter came to both the human settlements and infrastructure committee and also council. At committee level, members agreed that the increase was unwarranted.

“We were strongly against this madness.

“This is mainly because the issue of orange bags has always been a contentious one among residents as the delivery and collection is almost non-existent.”

Deputy mayor Philani Mavundla said the price increase was driven by the volatility of the economic situation in the world.

He said plastic was a by-product of petrochemical products and the price of plastic therefore fluctuated.

THE MERCURY