Auditor-General confirms probe into R12bn GladAfrica tender
Spokesperson Africa Boso said the investigation formed part of the 2017/18 annual regularity audits of all municipalities.
The Pretoria News had contacted the auditor-general (Kimi Makwetu) to establish the authenticity of a draft report dated November 10 that had been sent by the office to city manager Dr Moeketsi Mosola regarding the GladAfrica tender.
In the letter, the auditor-general requested Mosola to respond to negative findings against the procurement of a project management contract awarded to GladAfrica in November last year.
Boso said he would not comment further on the subject as per the mandate of the auditor-general not to do so until after audits had been concluded and reported to council, legislatures and Parliament. The report found that the City transgressed Regulation 32 of Municipal Supply Chain Management, applied to procure a project management contract.
The contract to roll out infrastructure projects valued at R12billion was awarded to GladAfrica following the implementation of Regulation 32.
According to the report, the City didn’t conduct financial analysis in respect of potential cost savings, effectively contradicting paragraph 32 of the Municipal Supply Chain Management regulations. The report noted that the municipality failed to demonstrate how it would derive benefits from the GladAfrica contract as required by the regulation.
The City’s procurement process, using Regulation 32, was modelled on the approach adopted by the Development Bank of Southern Africa. In line with the regulation, the City obtained names of 26 companies to compete for the contract and GladAfrica was chosen as the successful bidder.
The report, however, found that “the material terms and conditions of the contract that the City concluded with GladAfrica differed with those of the Development Bank of Southern Africa”.
Mosola is on record numerous times as saying “it is not in the character of the City to conduct its internal audit investigations in the media Only after the process is concluded will the City release a formal statement.”