Heads to roll in Cape jewellery tender scam

Published Aug 28, 2006

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By Anél Powell

At least two "senior people" in the City of Cape Town will find out on Tuesday whether they face criminal charges for their involvement in the controversial R6-million jewellery city tender scandal.

A top-level director, known as Mr Ten Percent for his alleged penchant for taking a 10 percent cut in exchange for helping get tender deals approved, is expected to face serious disciplinary charges and probably criminal action for his role in the tender allocation.

Ian Neilson, mayoral committee member for finance, said on Sunday that he was "waiting for certain final actions to happen" before the results of the long-awaited forensic audit, ordered by the DA-led multi-party government immediately after the March 1 elections, could be released.

Given the high ranking of the officials implicated, Neilson said the city had to make sure its case was watertight before releasing the findings.

A city source close to the investigation said the premature release of the report could give those implicated an opportunity to prepare a defence or counter-argument.

Thabo Mokwena, a former South African Local Government chairman and head of the Johannesburg-based firm, TOM Consulting, was appointed by the ANC-led administration in March 2005 to manage the African jewellery city project.

According to invoices signed off by former city manager Wallace Mgoqi, Mokwena pocketed R1 200 an hour for his consultancy work. He took home a monthly salary of R144 000 for less than four days of work a week.

When the DA took over the council in March this year, Mokwena had already been paid more than R8m for his services.

Mgoqi awarded the contract for the second phase of the project to Vusani and Imbewu consortia the day before the local government elections. Included in this contract was a stipulation that Mokwena would be retained by the successful bidder as the project consultant.

Doubt has been cast on this last-ditch flexing of authority by the ousted city manager after unsuccessful bidders claimed that this tender process was irregular.

The council is now negotiating a settlement with the consortia that will include the establishment of an appeals authority to deal with these grievances. The jewellery city project has been put on ice, pending the findings of the forensic audit.

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