Procurement regulations were not followed
Controversial City of Joburg anti-corruption boss Shadrac Sibiya stands accused of flouting city procurement regulations and, in the process, costing the city double what it should have paid.
The claims against the head of the corruption-busting unit, Group Forensics and Investigations Services, are supported by documentation which shows that a company, SM Xulu, contracted for investigations, was used to pay for a strategic workshop.
“The rst problem is: what does SM Xulu know about eventing? Secondly, why abandon a legit procurement process – who has what to gain from such departure from normal process? Thirdly, why must such a departure from the rules end up costing rate payers double what we needed to pay? The answers to all these are obvious. There is a pungent smell of corruption here – and the so-called corruption buster must answer,” said a source, adding there was a conflict of interest and friendship between Sibiya and a service provider.
This week, Sandile Xulu of SM Xulu Consulting confirmed the specialty of his company was indeed forensic investigations and not conferencing.
He confirmed his friendship with Sibiya, but stated that the former top cop found him already doing business with the city when he joined the metro.
“There were no favours done,” Xulu said.
Several documents seen by Sunday World show that the former Hawks Gauteng boss’s unit halted a procurement process for a service provider to provide a conference venue and accommodation for a strategy workshop in July 2017.
This was after the city’s bid evaluation committee recommended that another company, the Blades, be appointed. Documents seen by Sunday World, shows that SM Xulu Consulting, a company on the panel of services providers to assist the city with assurance, auditing, and forensics investigations was asked to send a proposal and later got appointed – at almost double what an events company would have cost the city.
The documents show that the Blades had quoted the city R332 526, while Leriba Hotel had quoted R293 541 for a full conference package.
Instead, SM Xulu Consulting was appointed at a cost of R623 076.50, – which included about R45 000 spent on alcoholic beverages by a few o£cials, much to the surprise of those who were part of the tender bid committees.
An official who participated in the process revealed that the procurement process was abandoned in the final stages, when the Blades was due to receive an appointment letter.
Sibiya referred all questions to the city’s communication division.
City of Joburg spokesman Nthatisi Modingoane confirmed that the procurement process had been on the tender in question, but said it was done to save the city’s resources and time.
“The initial procurement process was halted post the realisation that the required services can be provided by the co-source partners. So, proceeding with the process would waste time and have additional financial implications,” said Modingoane in his response.
He said SM Xulu Consulting was appointed as part of a co-sourcing agreement it had signed with the city to augment the city’s capacity in the department and to transfer skills.
Modingoane said SM Xulu had a service level agreement with the city from Sept 2014 to Sept 2017.
He said the allegations levelled against Sibiya were not true, adding heads of departments in the city were not involved in procurement processes as these were delegated to officials. He said SM Xulu’s contract as a co-source partner was in place long before Sibiya joined the City, denying that there was conflict of interest in the two’s alleged friendship.
Modingoane could not explain why SM Xulu used the services of Leriba Hotel, one of the tender participants, and he only said the city was entitled to use any facility, including Leriba, saying they met all the requirements.
By Aubrey Mothombeni
