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IOL News
5 days ago
- IOL News
Urgent tender processes revealed in Zandile Gumede's corruption trial
Former mayor of eThekwini Municipality Zandile Gumede and her sister in-law, Zano Maphumulo. Image: Nomonde Zondi The 14-day cooling-off period did not apply when the eThekwini Municipality awarded the R320 million Durban Solid Waste (DSW) tender in December 2017 due to a deviation from standard tender procedures, a State witness told the Durban High Court on Friday. This is because Section 36 of the Supply Chain Management policy had to be put into effect at this time, and the municipality needed to urgently get service providers to collect waste. The State witness, who cannot be named as per a court order, said this during her cross-examination with defence counsel, Advocate Credo Mlaba. Mlaba is counsel for former city manager Sipho Nzuza, who is the third accused in the matter. Nzuza and former mayor of eThekwini Municipality Zandile Gumede are charged with 20 others for money laundering, racketeering, fraud, corruption, and contravention of the Municipal Finance Management Act and the Municipal Systems Act relating to the DSW R320 million tender. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Earlier this week, the witness who worked for the tenders and contracts unit within the municipality told the court that she was forced to issue letters of award to service providers to collect waste without allowing the 14-day cooling-off period. She said she was forced to break internal controls by issuing letters of appointment to companies that had been recommended to collect waste without Nzuza's signature. The court has heard that due to the urgency of the matter, the Solid Waste Unit had gone to the Bid Adjudication Committee (BAC) to ask for authority to source quotations from experienced service providers to collect waste in the city. This is because the contracts of the current service providers at the time were expiring on December 31, 2017. This came after the unit received a lot of bidders in November for this tender and realised that they were not going to finalise the process on time. Additionally, counsel for the fifth accused, Sandile Ngcobo, advocate Jimmy Howse SC, started his cross-examination and referred the witness to a transcript of a BAC meeting on December 19, 2017. The witness attended this meeting. He asked her if Ngcobo was referring to the Solid Waste Unit when he said the compliance checks for the service providers need to be thoroughly done. 'That is correct, Mr Howse. He instructed at the meeting,' she said. The witness also agreed with Howse that Ngcobo said the Solid Waste Unit could get any service provider as long as they were experienced. The court has heard that compliance checks were not done. Additionally, the matter had to be adjourned early as one of the accused, Bhekokwakhe Phewa, was sick. The matter was adjourned until Monday.
The Herald
06-05-2025
- Business
- The Herald
R2m laptop purchase marred by irregularities and possible fraud
Mpumalanga premier Mandla Ndlovu says the procurement process followed by the department of education to acquire 22 laptops was riddled with misrepresentation, noncompliance with procurement laws and possible fraud. Ndlovu released the investigation findings into the procurement of laptops by the department at an inflated price of R91,482 each. He instituted the investigation at the beginning of April, after being alerted to the matter by a whistle-blower as early as February 15. Among other aspects, the investigation focused on whether the procurement processes followed for the acquisition complied with applicable prescripts, such as the Public Finance Management Act (PFMA) and Supply Chain Management (SCM) Regulations and whether the department tested the market to determine if the goods provided offered value for money. Ndlovu found that the procurement was materially flawed, in that it did not comply with section 217 of the constitution, along with sections 38 and 45 of the Public Finance Management Act (PFMA), as the process failed to meet the required standards of fairness, equity, transparency, competitiveness and cost-effectiveness. He added the supplier also did not comply with the terms of the purchase order and delivered laptops of a lesser quality than what was approved and paid for. 'The departmental officials irregularly specified the brand they required instead of the functionality, resulting in only specific suppliers responding to the issued request for quotations (RFQ),' he said. He said the officials irregularly invited bids from a particular brand of suppliers and within the limited locality of Mbombela though it was required that they expand the scope to suppliers of all brands provincially. 'The department accepted delivery of laptops not per the specification. The initial specifications were varied without a proper process and by an official not duly authorised. The conditions specified by the bid adjudication committee to negotiate the price before the order being issued were not adhered to. Then the department procured laptops of similar specifications, which could have been procured for a lesser amount had due diligence been applied.' The investigation also found that the process involved misrepresentation and possible fraud as the supplier misrepresented to the department that it supplied the goods as per the award when it knew that the laptops supplied were not per the specifications. He also found that officials in the department repeatedly misrepresented key aspects of the procurement process. They falsely claimed that proper procedures had been followed, that the goods delivered matched the approved specifications, and that the amount paid was accurate and justified — even though the laptops delivered were of inferior quality to those ordered. Further, they misrepresented that the technical specifications used were based on current user requirements, when in reality, they relied on outdated specifications developed two years prior, which had not been reviewed or updated for the current procurement. He further found evidence of gross dishonesty by certain department officials. Some officials were found to have conducted an internal investigation into a matter in which they themselves were implicated, while failing to fully disclose their involvement and also provided false information and misled both the premier and the MEC with inaccurate accounts of the procurement process. Ndlovu said, the service provider also acted dishonestly in an attempt to conceal its failure to meet the agreed specifications. Notably, the department had appointed this service provider to deliver 22 Dell XPS 15 laptops at R91,482.50 each and one HP printer at R8,269.45, amounting to a total of R2,020,883.45, which also included accessories such as wireless mice and laptop bags. He said they intend to immediately recover any financial losses incurred by the department as a result of the procurement of the laptops from the service provider. Additionally, they plan to initiate the process of blacklisting the service provider on the National/Provincial Treasury Register for Tender Defaulters and report the matter to SITA. He recommended that disciplinary action be instituted against all implicated officials, including the HOD, per the relevant prescripts, such as the Public Service Act, the Public Service Regulations, the Public Finance Management Act and Senior Management Handbook. He also proposed conducting lifestyle reviews on all officials named in the report, which may lead to lifestyle audits, in line with the applicable regulations. Ndlovu also recommended that any possible criminal acts, including but not limited to collusion, bribery, corruption, fraud, and financial misconduct under the Public Finance Management Act and Prevention and Combating of Corrupt Activities Act be reported to the police. TimesLIVE
TimesLIVE
05-05-2025
- Business
- TimesLIVE
R2m laptop purchase marred by irregularities and possible fraud
Mpumalanga premier Mandla Ndlovu says the procurement process followed by the department of education to acquire 22 laptops was riddled with misrepresentation, noncompliance with procurement laws and possible fraud. Ndlovu released the investigation findings into the procurement of laptops by the department at an inflated price of R91,482 each. He instituted the investigation at the beginning of April, after being alerted to the matter by a whistle-blower as early as February 15. Among other aspects, the investigation focused on whether the procurement processes followed for the acquisition complied with applicable prescripts, such as the Public Finance Management Act (PFMA) and Supply Chain Management (SCM) Regulations and whether the department tested the market to determine if the goods provided offered value for money. Ndlovu found that the procurement was materially flawed, in that it did not comply with section 217 of the constitution, along with sections 38 and 45 of the Public Finance Management Act (PFMA), as the process failed to meet the required standards of fairness, equity, transparency, competitiveness and cost-effectiveness. He added the supplier also did not comply with the terms of the purchase order and delivered laptops of a lesser quality than what was approved and paid for. 'The departmental officials irregularly specified the brand they required instead of the functionality, resulting in only specific suppliers responding to the issued request for quotations (RFQ),' he said. He said the officials irregularly invited bids from a particular brand of suppliers and within the limited locality of Mbombela though it was required that they expand the scope to suppliers of all brands provincially. 'The department accepted delivery of laptops not per the specification. The initial specifications were varied without a proper process and by an official not duly authorised. The conditions specified by the bid adjudication committee to negotiate the price before the order being issued were not adhered to. Then the department procured laptops of similar specifications, which could have been procured for a lesser amount had due diligence been applied.' The investigation also found that the process involved misrepresentation and possible fraud as the supplier misrepresented to the department that it supplied the goods as per the award when it knew that the laptops supplied were not per the specifications. He also found that officials in the department repeatedly misrepresented key aspects of the procurement process. They falsely claimed that proper procedures had been followed, that the goods delivered matched the approved specifications, and that the amount paid was accurate and justified — even though the laptops delivered were of inferior quality to those ordered. Further, they misrepresented that the technical specifications used were based on current user requirements, when in reality, they relied on outdated specifications developed two years prior, which had not been reviewed or updated for the current procurement. He further found evidence of gross dishonesty by certain department officials. Some officials were found to have conducted an internal investigation into a matter in which they themselves were implicated, while failing to fully disclose their involvement and also provided false information and misled both the premier and the MEC with inaccurate accounts of the procurement process. Ndlovu said, the service provider also acted dishonestly in an attempt to conceal its failure to meet the agreed specifications. Notably, the department had appointed this service provider to deliver 22 Dell XPS 15 laptops at R91,482.50 each and one HP printer at R8,269.45, amounting to a total of R2,020,883.45, which also included accessories such as wireless mice and laptop bags. He said they intend to immediately recover any financial losses incurred by the department as a result of the procurement of the laptops from the service provider. Additionally, they plan to initiate the process of blacklisting the service provider on the National/Provincial Treasury Register for Tender Defaulters and report the matter to SITA. He recommended that disciplinary action be instituted against all implicated officials, including the HOD, per the relevant prescripts, such as the Public Service Act, the Public Service Regulations, the Public Finance Management Act and Senior Management Handbook. He also proposed conducting lifestyle reviews on all officials named in the report, which may lead to lifestyle audits, in line with the applicable regulations. Ndlovu also recommended that any possible criminal acts, including but not limited to collusion, bribery, corruption, fraud, and financial misconduct under the Public Finance Management Act and Prevention and Combating of Corrupt Activities Act be reported to the police.
TimesLIVE
30-04-2025
- Business
- TimesLIVE
An e-commerce shake-up
Amazon entering the South African e-commerce market is a game-changer. Consumers gain access to a range of new products and retailers to a range of international markets; e-commerce incumbents have a reason to sharpen their strategies and logistics service providers are forced to up their game. In this issue of Supply Chain Management, we explore the implications of Amazon's South African expansion for stakeholders across the supply chain. Another major development is the announcement of reforms to the regulations governing relationships between the public and private sectors, with the goal of facilitating partnerships and investment for crucial infrastructure projects. Regulations are also in the spotlight when it comes to road transport, as we look at the benefits of implementing the Road Transport Management System in terms of safety, fleet management and load optimisation. Optimisation is also being achieved through automation — a topic we explore in two articles looking at how robots can facilitate smoother product handling and warehouse operations. Speaking of product handling, we look at how rail is reshaping the logistics of perishable produce in Johannesburg, and close off by asking what fruit exporters need to grow the industry. Anthony Sharpe, Editor
IOL News
23-04-2025
- IOL News
Former eThekwini SCM deputy head loses court bid to overturn dismissal
Former deputy head of Supply Chain Management in eThekwini municipality Sandile Ngcobo. He is the fifth accused in the DSW tender fraud case, involving Zandile Gumede. Image: Doctor Ngcobo / Independent Media The Labour Court in Johannesburg has dismissed the application of former eThekwini municipality deputy head of Supply Chain Management (SCM) to have the municipality and City manager Musa Mbhele review their decision to fire him. The former senior official of the municipality Sandile Ngcobo is a co-accused of the former mayor of this municipality Zandile Gumede. Gumede, Ngcobo, and 20 others are on trial for fraud, corruption, racketeering, and contravention of the Municipal Finance Management Act and the Municipal Systems Act concerning the Durban Solid Waste (DSW) tender of R300 million. Launching his application, Ngcobo said the City had no lawful grounds to terminate his employment. Judge Zolashe Lallie said after Ngcobo was arrested for the DSW corruption matter he was granted bail on May 2, 2019. She said that Ngcobo's bail conditions precluded him from entering the premises of the municipality or having any contact or communication with any person or subordinate there except through his legal representatives. 'The applicant's bail conditions rendered it impossible for him to perform his contractual duties,' she added. She said Mkhize was employed to act in Ngcobo's position. In an attempt to reclaim his position, Ngcobo applied for and was granted a variation of his bail conditions by a criminal court on June 26, 2019. His union then lodged a grievance which was resolved by agreement with the City manager in September 2019. Ngcobo submitted the agreement reached in September that he would return to work with an adjustment to his duties as deputy head of SCM. He returned to work in November 2020; however, he could not communicate with his subordinates or sign new DSW-related contracts, as that would be a conflict of interest. As he could not perform all his duties because of the bail conditions, Ngcobo would be given additional functions related to the Radical Economic Transformation Programme (RET). 'From November 2020 the applicant (Ngcobo) has been away from work for a substantial period as he had to appear at his High Court criminal trial,' she said. In December 2024, Ngcobo received a letter from Mbhele, requesting him to state reasons as to why he should not be removed from any SCM function and why if that was not done he should have his contract of employment terminated on grounds of supervening impossibility. In January 2025, Ngcobo disputed that he couldn't continue rendering his services as required. On February 3, 2025, he was placed on special leave while the municipality's City Integrity and Investigation Unit (CIIU) investigated this. On March 18, he was fired. Ngcobo did not accept that instead, he launched an urgent application, seeking relief from the specific performance of his contract of employment. In its defence, the City said keeping Ngcobo in his position had the effect of breaching his bail conditions. 'The applicant conceded that when his contract of employment was terminated he was communicating with his subordinates and performing duties based on the RET programme. He conceded that he was acting in breach of his bail conditions,' Judge Lallie explained. Ngcobo's justification was that in the agreement he reached with the City in settlement of his dispute, he was permitted to breach the bail conditions. 'It must be noted that when the City received more information on the criminal cases the applicant is facing in different courts including the list of witnesses realized the serious consequences to the agreement,' she said. Judge Lallie said Ngcobo refused grade 7 positions that the City offered him. She said he was going to retain his salary and benefits. Ngcobo said accepting the positions would constitute demotion. 'Offering an employee a lesser position as an alternative to terminating his or her contract of employment constitutes a reasonable accommodation. The applicant's refusal to accept one of the positions with the retention of his salary and benefit and insisting that the first respondent should retain him in his position in contravention of his bail conditions is unreasonable,' she said.
