DURBAN - The eThekwini municipality is allegedly using an emergency provision (section 36) of its supply chain management policy to award housing construction tenders to “connected companies”.
Section 36 allows for deviation from normal tender in situations deemed to be emergencies.
A document seen by the Sunday Tribune, dated April 10, reveals that 15 companies were each recently awarded R12million for the construction of “1170 low-cost units affected by storm disaster in various wards” in October last year.
Senior sources within the municipality are questioning why section 36 is being used six months after the fact.
“When people were affected by the storm last year they were only provided with food parcels and left like that,” said one source.
Cars came to a standstill and were submerged in flood water after a storm hit Durban. Picture: Supplied
“But now, because they (connected officials) want to loot, they are awarding a tender to rebuild the homes using section 36. There is no emergency at this point. The tender should have been advertised for other companies to bid,” said a source.
When the city was asked for comment last week, deputy head of communications Mandla Nsele said no companies had been appointed.
“However, recommendations have been made. It has taken six months for all the departments to meet and plan on how the repairs would be executed,” said Nsele.
This week, Nsele said the appointments “will be made in terms of the approved panel of service providers, and not through section 36. The panel was composed through an open advertisement.”
But another senior municipal source said section 36 had been used in awarding the tender. “eThekwini municipality is faced with looting of the worst kind. The unfortunate part is that only the poor get affected because service delivery gets delayed while business people with connections continue to get enriched,” said another source.
LUCKY: The uMlazi house from which Felokwakhe Mhlongo managed to escape before two bedrooms, a lounge and toilet were swept away by floods after a stormwater pipe burst during the deluge.Pictures: Sibusiso Ndlovu
The document provided to the Sunday Tribune stated that the “construction of 1770 low-cost units affected by storm disaster in various wards” had been “awarded in terms of section 36 1(a) as it is an emergency”.
Each of 15 companies were to be paid R11 959 878 (R12m) for building 118 units.
The Sunday Tribune established that two of the companies had previously been fingered for alleged procurement irregularities by the City Integrity Investigative Unit (CIIU). The body had recommended the companies be blacklisted and criminal charges be opened.
Another two companies also featured in a CIIU charge sheet drawn up against the suspended deputy head of supply chain, Zandile Sithole, who was accused of receiving kickbacks from businesses.
Sithole was suspended last year amid allegations of corruption and maladministration after a number of whistle-blowers, including staff in her unit, came forward with information.
She was accused of benefiting and having a corrupt relationship with companies that received tenders from the municipality.
Sithole faced nine charges related to contravening the supply chain management policy, code of conduct and municipal systems acts.
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Last year, many contracts were reportedly flagged by the auditor-general for transgressing procurement rules awarded under section36.
In March, her disciplinary hearing was disrupted by members of the Federation for Radical Economic Transformation.
Pupils mop up their classroom after Tuesday's heavy rain at Swelihle High School in uMlazi. Classes were disrupted for a second day at most Durban schools as cleaning-up operations were under way after the severe storm. Picture Zanele Zulu
KwaZulu-Natal DA KZN leader Zwakele Mncwango said section 36 had been used in the past to “award contracts to friends and families”.
“If the municipality had housed people in temporary shelters during the storm, then they could have used section 36 because building a house takes some time. But using it six months later is unacceptable because there is not an emergency,” Mncwango said.
“The huge challenge is that the municipality is run by militant business forums and political influence, they have influence on what's happening. They've managed to win the system. I am not surprised that companies recommended to be blacklisted are still getting tenders. That is why as the DA any tangible information we receive about corruption we submit to the Hawks because we have lost faith in internal investigations,” said Mncwango.
The IFP's Mdu Nkosi said the council had taken a resolution to use section 36 last year when the storm occurred but there was no funding.
“The storm was an emergency and it was not budgeted for.
"Building of houses was delayed because the city had to do budget adjustment. I think that’s why there are using it now, because it was agreed by council last year.”