A municipal manager at the Northern Cape’s Phokwane local municipality in Hartswater has petitioned the council to approve the termination of the service level agreement between the municipality and Monyangan Security Services.
In a report dated September 21, the acting municipal manager, Madoda Vilakazi, said the service level agreement was “unlawful” and recommended that the council “cure the irregularity and unlawfulness”.
Vilakazi proposed that the council approve the reduction of the rate per security guard from R18, 446, 60 to R14, 406, 85.
Consequently, the municipality would spend about R1.5-million per month on security services.
R25-million for three years
According to his report, Monyangan Security Services was appointed in May 2022 with a contract amount of R25-million for three years.
“The monthly bill of R689 425 was being paid for 55 security guards.”
But in April 2023, the service level agreement was amended to a total monthly bill of R1.9-million for 103 security guards, marking a 47% increase per guard.
“In total, the contract value has not ballooned to R68-million in 36 months,” said Vilakazi, adding that the deal was unlawful.
He said in terms of the law, contracts may only be expanded or varied by not more than 20% for construction-related goods, services rendered, or infrastructure projects, and 15% for all goods and services of the original value of the contract.
Anything beyond the above must be reported to the council, he said.
Vilakazi recommended that the council mandate management to process the cancellation of the contract in its entirety should Monyangan Security Services insist on the currently unlawful contract agreement.
In a statement earlier in October, the EFF in the Northern Cape described the security contract as corrupt.
“It is clear that Phokwane local municipality is a nest for fraud and corruption; thus, service delivery is secondary to being prioritised since the primary issue, which is also immediate and urgent, is to enrich those that are in leadership positions both politically and administratively,” said provincial secretary Zet Kwinana on October 9.
Agreement contravenes MFMA
Kwinana said the agreement contravened both the Municipal Finance Management Act (MFMA) and the Phokwane local municipality supply chain management policy.
He praised Vilakazi for advising the council against the security contract.
Kwinana added that seven cardinal pillars of the EFF demanded an open, accountable, corrupt-free government and society without fear of victimisation by state agencies.
He said the EFF’s policy was to insource all outsourced services and encouraged the municipality to insource the security service.
“The Economic Freedom Fighters in the Northern Cape calls upon law-enforcement agencies to take action with immediate effect to root out this corrupt element since this security contract is another monument of corruption that has been stealing from our ordinary poor people, and if there’s no action taken, our people will continue to suffer,” Kwinana said.
This is a developing story.
