The Special Investigating Unit (SIU) has welcomed a Special Tribunal judgment which reviewed and set aside an unlawful R25 million contract awarded by the Ngaka Modiri Molema District Municipality.
The contract was awarded to Rensh Close Corporation, owned by Rashida Cader, with the company tasked with conducting wastewater treatment and pump station refurbishment services in the beleaguered Ditsobotla Local Municipality.
The local municipality falls under the Ngaka Modiri Molema District Municipality in the North West.
“The judgment follows an SIU investigation, prompted by a referral from the Auditor-General of South Africa [AGSA], which uncovered serious procurement irregularities in the appointment of Rensh during the COVID-19 period.
“The SIU investigation [revealed] that on 27 November 2019, the Ngaka Modiri Molema District Municipality advertised a tender through the National Treasury for the emergency refurbishment of dysfunctional pump stations and associated works. Several service providers responded to the tender. Rensh was not among the bidders.
“However, on 7 March 2020, a Ngaka Modiri Molema District Municipality technical director contacted Cader by telephone and requested a quotation for repairs and maintenance of all facilities for which Themak Consulting Civil Engineering Consultancy…had already produced a bill of quantities (BOQ). Rensh subsequently submitted a quotation for R25 884 435.75,” the SIU explained in a statement.
The corruption busting unit added that a legitimate tender process, which had already garnered17 bidders, was allegedly “circumvented”.
“They abandoned this existing process and instead used COVID-19 emergency procurement rules to appoint Rensh, even though the company did not submit a bid or demonstrate that it had the necessary expertise. The Tribunal has since reviewed and set aside the contract, declaring it unlawful, constitutionally invalid and void ab initio.
“The Tribunal further found Cader personally liable for the losses suffered by the municipality,” the statement read.
Rensh and Cader have been ordered to repay all monies “due to the municipality, including profits derived from the contract”.
“Rensh and Cader have been ordered, within 30 days of the submission of the audited financial statements, to conduct a debatement exercise to determine all monies received from the municipality in respect of the unlawful contract, as well as the actual, reasonable and lawful out of-pocket expenses that Rensh may be able to prove that it has incurred in rendering the services.
“Themak and Makola have also been ordered to repay R3,882,665.37 received under the contract, together with interest from the date of the order until final payment,” the statement concluded. – SAnews.gov.za
