A leaked Auditor-General report has revealed that the controversial GladAfrica contract was irregular. The City of Tshwane has since confirmed the AG's finding concerning the project overseen by Moeketsi Mosola.
In 2018 revelations had begun to emerge about the GladAfrica tender, with claims that the normal awarding procedures had not been followed.
A leaked report has confirmed that the Auditor-General found irregularities in the contract with GladAfrica, a consultancy company.
The City of Tshwane has confirmed the Auditor-General's findings. The leaked report showed that hundreds of millions has already been paid over to the building project, overseen by Moeketsi Mosola, city manager.
According to News24, Moeketsi Mosola has also admitted the tender was abnormal. Around R317 million has been paid towards the R12 billion tender has also been found to be irregular. By November, GladAfrica had already received R455 million worth payments from Tshwane.
Mosola had been given 5 days to provide evidence against the Auditor-General Kimi Makwetu's findings in November 2018.
Moneyweb reported that the Auditor-General's office had served audit findings about the contract and had invited Mosola to respond. After this the Auditor-General would finalise the findings.
Mosola was to provide the Makwetu with a copy of the preliminary report from Bowmans, a law firm that was investigating the matter on orders of the mayor, Solly Msimanga, who has recently resigned.
Briefly.co.za recently reported that the Solly Msimanga had resigned earlier this month, departing next month to focus on his candidacy for premiership in Gauteng.
In 2018 Mosola, city manager, had obtained an interim order to prevent Msimanga and Katlego Mathebe, city speaker, from tabling Bowmans report in council.
However, Mosola has not been able to provide the Auditor-General with sufficient compelling evidence to disprove the findings and has conceded.
The Auditor-General had detailed how Mosola had taken total control of the procurement process leading to the appointment of GladAfrica.
The city manager had initiated this procedure, determined the demands of project management and approved the process to be followed. This was a duty meant to be undertaken by the supply chain management department.
The Auditor-General had found payments to GladAfrica had been made before the company had been appointed. At the time there had been no valid contract between the city and the company.
So how did Mosola end up appointing GladAfrica? The contract between the city and the company had been procured on the basis of a Regulations, which allow for an organ of state to 'piggy back' on the procurement process of another when it procures the same goods or services.
In this particular case, Tshwane had obtained approval, from the Development Bank of Southern Africa, to join their current procurement process for a panel of companies.
The panel was to be appointed to aid in the roll-out of infrastructure projects. The companies that were appointed to the panel had been meant to submit quotes to the city for project management work.
Th City of Tshwane was subsequently bypassed and prevented from following the usual procurement process. This a something that is only allowed where discounts or benefits to the city can be proven.
The Auditor-General explained that no such benefits could be proven and no proper financial analysis had been done.
The AG had found that what had rendered the process unfair and unjust due to the fact that the City had randomly chosen a selection of the quotations, and not all of them.
Once the agreement with GladAfrica had been entered into the material terms and conditions had differed to such a large extent from the DBSA agreement that it had fallen outside the scope of the 'piggy back regulation'.
The differences had included duration, contract value and rates, the scope of the work to be done as well as the fact that Tshwane had contracted with a different entity than the DBSA.
The agreement between the city and GladAfrica Project Managers actually reflected the registration number was for GladAfrica Consulting Engineers. As result the status of the correct entity had not been checked at SARS ( South African Revenue Service).
The Auditor-General had also found that Tshwane had contravened the Public Audit Act by failing to provide specific documentation.
Samkelo Mgobozi, spokesperson for the city, had said that Mosola should have ensured the deal was legally sound in his capacity as accounting officer.
The City of Tshwane will now need to decide what action should be taken regarding not only the illegitimate contract, but Mosola himself.
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