The Special Tribunal has ordered a construction company to repay R68.8 million it received from a fraudulent R167.9 million municipal tender in Limpopo.
The contract, awarded in 2018 to Easyway, Tarmac, Pave and Projects CC by the Mogalakwena Local Municipality, was declared unlawful and unconstitutional after the company misrepresented its qualifications.
The ruling comes after a successful application by the Special Investigating Unit (SIU).
SPECIAL TRIBUNAL RULES ON THE MAKING OF A TENDER FRAUD SCANDAL
The Mogalakwena Local Municipality awarded Easyway the multimillion-rand contract to provide boreholes and pipelines for the community.
But the SIU later uncovered that the company had deliberately misrepresented its track record.
In its tender documents, Easyway claimed to have completed three projects worth more than R50 million for various municipalities.
Municipal managers swiftly debunked the claims by providing affidavits.
While Easyway did have one legitimate project to its name, it had been shamelessly inflated from R6.1 million to over R50 million on paper.
MOGALAKWENA LOCAL MUNICIPALITY’S LACK OF TRANSPARENCY IN TENDER PROCESS
The SIU found that the Mogalakwena Municipality’s Bid Committee lacked transparency and acted unfairly during the tender process.
Scoring records revealed that the committee failed to follow its own criteria and could not justify why it overlooked a higher-scoring bidder.
Judge Brian Amos Mashile, presiding over the case, ruled that the municipality should not have awarded the tender to Easyway.
“No contract should have been concluded between the Municipality and Easyway,” said Mashile
He added that the company made its bed by committing tender fraud, and it must now lie in it.
SIU IN A MISSION TO RECOUP STATE FUND
The investigating unit has pledged to recoup all state funds and ensure the implementation of the tribunal’s order.
It will also refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority.
IF YOU COULD FIX THE TENDER PROCESS, WHAT CHANGES WOULD YOU MAKE TO KEEP IT FAIR AND OPEN?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 0211.
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