National Treasury director-general Dondo Mogajane has instructed City of Joburg (CoJ) mayor Geoff Makhubo to cancel a R1.2-billion fleet contract awarded to Afrirent.
The tender was awarded through regulation 32 but Mogajane has stated that it was irregular and did not comply with National Treasury norms and standards.
Mogajane has also instructed the City of Joburg to commission a forensic investigation into the tender within 30 days.
The fleet tender was mired in controversy after allegations surfaced that the appointed company, Afrirent, had links with the DA’s governing partner in the City of Joburg, the EFF.
In a letter dated February 20 to Makhubo, Mogajane said a National Treasury review had shown several anomalies relating to the contract, among them the fact that the city had initially aimed in its procurement plan to spend at least R2.2-million, but the project had ended up ballooning to R1.2-billion.
In the letter, he acknowledged the CoJ’s decision to participate in a contract already signed by Mogale City local municipality (MCLM) and
Afrirent under regulation 32 as permitted by government prescripts. However, he flagged aspects of the contract.
National Treasury pointed out that Mogale City and Afrirent had not yet signed a contract at the time the City of Joburg applied to participate in the contract. Mogajane said the City of Joburg’s letter was sent to Mogale City on July 10 2018, while the municipality signed its contract with Afrirent on July 13 2018.
Mogajane also highlighted that while Mogale City’s contract was worth R111-million, the City of Joburg’s contract was worth R1.4-billion. “According to the bid evaluation committee minutes dated 6 June 2018 from MCLM, a total of 168 vehicles were required.
However, CoJ required 2732 vehicles from Afrirent Pty Ltd, which makes a huge difference in size of scope. CoJ rented hatchbacks cars from Afrirent, however, MCLM did not have hatchback cars in their specification, therefore, CoJ acquired items that were not part of the contract. CoJ proceeded to participate … in a contract concluded by MCLM for approximately R100-million, whereas CoJ’s contract value was about R1.4-billion,” said Mogajane in the letter.
Former Joburg mayor Herman Mashaba distanced his administration from claims contained in the letter. He said nothing untoward was found in the final report of a forensic investigations conducted by the City’s forensic investigations unit. “The final report released in June last year dismissed any notion that there was political interference in the awarding of a contract to Afrirent,” he said.
He said although he welcomed the decision to reinvestigate the contract, the Treasury needed to also look into other matters including those involving Makhubo, who he had said benefited R30-million from Guptas.
Mayor Jeff Makhubo’s spokesperson Mlimandlela Ndamase said the mayor has responded to the letter from the Treasury director-general and said the matter is being attended to and the investigations are under way.
“No updated report is available at this stage. The allegations by former mayor Mashaba have been his defence whenever he’s required to be accountable,” said Ndamase.
