Latest news with #R18.7m
TimesLIVE
10 hours ago
- Business
- TimesLIVE
'Millions wasted': Lesseyton sports field not built to spec, says public protector
There were procurement irregularities in the awarding of a R22.7m tender to Thalami Civils JV for the construction of the Lesseyton sports field by the Enoch Mgijima local municipality. Public protector Kholeka Gcaleka released the report on the findings of the investigation into allegations of improper conduct and maladministration by functionaries of the municipality relating to the construction of Lesseyton sports field in 2018. The Lesseyton sports field gained national notoriety in October 2021 after its unveiling was posted on social media and users immediately began questioning whether its R15m price tag constituted value for money. According to the specification dated March 9 2018, the construction was supposed to include the construction of a grassed athletic track, soccer/rugby field, netball, tennis and volleyball courts and grandstands. However, these facilities have not been constructed. Investigations found that the soccer/rugby field was not constructed according to the specifications and the electricity has not been connected. In the investigation, Gcaleka observed that the ward councillor signed the completion certificates and accepted the construction of the sports field as satisfactory, despite the municipality not receiving any value for money. According to the findings, the total amount of the awarded bid exceeded the budgeted amount of R18.7m that was approved by the department of co-operative governance and traditional affairs (Cogta) in the 2017/18 financial year. The awarded tender exceeded the budgeted amount by more than R4.7m without evidence that the municipality sought additional funding or approval from the municipal council, as required under the Municipal Finance Management Act. Further, the report found that the tender advertisement had two different closing dates and was not placed on three different publicly accessible platforms as required by the municipal supply chain management policy. The advertisement period for the tender was shortened from 30 days to 14 days, and the reason provided was that the construction of the sports field was an emergency. Gcaleka found that the municipality's definition of emergency in this regard was not in line with the definition in terms of the municipal supply chain management policy. The evidence suggests that two bid evaluation processes took place with the first process resulting in the first bidder being the preferred bidder, whereas the second process used a different formula provided by the bid adjudication committee and culminated in Thalami Civils, which was the fourth-highest scoring bidder, winning the tender. She also found that the allegations of irregularities in the management of the contract and a lack of proper oversight on the construction project by the local and provincial governments, resulting in no value for money paid, were substantiated. The public protector observed that the ward councillor signed the completion certificates and accepted the construction of the sports field as satisfactory when the municipality did not get any value for money as evident in this investigation. Gcaleka recommended that the municipal manager of the municipality ensure the reconstruction of the Lesseyton Sports Field in accordance with the bid specifications dated March 9 2018.
IOL News
14 hours ago
- Sport
- IOL News
Public Protector uncovers serious procurement irregularities in Lesseyton Sports Facility
Public Protector finds procurement irregularities in the construction of Lesseyton Sports Facility in Enoch Mgijima Municipality. Image: Supplied Public Protector Advocate Kholeka Gcaleka has found that there was mismanagement in the construction of the R22.7 million Lesseyton Sports Facility in the Enoch Mgijima Local Municipality. The investigation was launched after complaints were laid with the Public Protector's office in Bisho, Eastern Cape, to probe the alleged procurement irregularities relating to the construction of the sports field. The venue, also known as Ndlovukazi Sports Stadium, was unveiled in October 2021. The stadium sparked outrage, with many questioning its exorbitant price tag. Pictures posted on social media showed a dry, bumpy field, small metal stands, soccer, and rugby uprights. It also has no working ablution facilities or electricity. This sparked investigations from the Public Protector and the Department of Cooperative Governance and Traditional Affairs (Cogta), which also found that the awarding of the tender was irregular. The Cogta investigation also found that the people involved were able to change the scopes of work without following due process. The contract was awarded to a Pretoria-based company, Thalami Civils Pty Ltd. Presenting the report in the Bisho office, Gcaleka said allegations that there were procurement irregularities in the awarding of the tender to Thalami have been substantiated. She said the awarding of the tender exceeded R18.7m budget, which was approved by Cogta during the 2017/18 financial year, adding that this exceeded the budget by over R4.7m. 'And there is no evidence that the municipality approached the municipal council for additional funding as required by Section 19(1) of the Municipal Finance Management Act (MFMA),' she said. Enoch Mgijima's spokesperson, Lonwabo Kowa, did not respond at the time of publication. Gcaleka added that the tender advertisement had two different closing dates and was not placed in three different public platforms as required by regulation 22(1)(a) of the Municipal Supply Chain Management Policy. She added that the tender advertisement period was shortened from 30 days to 14 days. 'The reason provided was that the construction of the Lesseyton Sports facility was an emergency. The municipality's definition of emergency in this regard is found not to be in line with the definition in terms of Regulation 22 (2) of the Municipal Supply Chain Management Policy,' Gcaleka said. She said the evidence suggested that two bid evaluation processes took place. According to her, the first process resulted in a different service provider being the preferred bidder, and the second process utilised a different formula provided by the Bid Evaluation Committee (BEC), and this resulted in the appointment of Thalami Civils, which was the fourth highest bidder to win the tender. 'The reasons advanced by the municipality for awarding the tender to the bidder were that the bidder had recently received the tender for a similar magnitude. The reason provided by the BEC did not amount to a quote objective criterion and was not supported by any legal original authority,' she said, adding that this reason was not part of the evaluation criteria in terms of the specification determined by the BEC. 'Thalami was, therefore, appointed in contravention of Section 2(1)(e) and (f) of the PPPFA, which provides that contracts must be awarded to the tenderer who scores the highest points unless objective criteria justifying the award to another tenderer,' said Gcaleka, adding that the allegation that there were irregularities in the management of the contract and a lack of proper oversight on the sports field construction was also substantiated. The office also found that after the construction was suspended, Thalami, which was paid R15m, was reappointed and proceeded without a valid contract. Gcaleka recommended that Cogta should take action officials involved. The article will be updated when Enoch Mgijima Municipality comments. [email protected]
