The city of Joburg has suspended senior officials implicated in tender corruption involving a contract worth over R300-million signed with the Metropolitan Trading Company (MTC) on January 5 2021.
This comes after the Gauteng metro received a damning report following a forensic investigation conducted by law firm ENSafrica.
The city confirmed to Sunday World that it was aware of the report as it had instructed ENSafrica to investigate the multi-million-rand contract that was given to MTC, an entity owned by the City of Joburg.
In the forensic report, which Sunday World has seen, it is revealed that the city’s public safety department had procured the services of MTC to provide hand-held devices such as two-way radios; programming and maintenance services, as well as CCTV equipment and access control and alarm systems to be installed in various buildings owned by the city.
The report, which was handed over to the city on May 17, states that the city spent over R20-million on the hand-held devices and more than R300-million on CCTV equipment in a project flagged as irregular and in violation of the Municipal Finance Management Act.
“It is important that we clarify upfront the nature and status of this report. We conducted what was essentially a workplace investigation, which involved the consideration of whether the relevant transactions covered in this report were concluded in line with the laws and relevant policies of the city,” the report reads.
According to the report, the investigation focused on whether the correct processes had been followed in concluding the relevant transactions and where non-compliance was found, it was linked to the relevant role players, including senior managers and the accounting officer, former city manager Floyd Brink.
More than 10 senior officials were interviewed by the investigators about the contract.
Sunday World, however, understands that some of these senior officials, including then acting city manager Floyd Brink, refused to co-operate with investigators.
The report stated that Brink refused flatly to be interviewed, despite the fact that he was an integral role player in awarding the contract to the MTC.
“The regulations require that a municipal council must establish a disciplinary board to investigate allegations of financial misconduct in the municipality and to monitor the institution of disciplinary proceedings.
“We have found no evidence that Mr Brink took any corrective action against any of the officials involved,” the report reads.
Responding to the questions sent by Sunday World, Joburg spokesperson Nthatise Nthatisi Modingoane said: “Senior officials implicated in this matter have been placed on precautionary suspensions while disciplinary processes are being undertaken. The same process will also be applied to other officials implicated.
“From a process point of view, the city started off with dealing with senior officials first to check the culpability of other officials involved in the matter. Action will be taken once all the facts have been established and where necessary disciplinary action will follow.”
He added that the MTC, as an entity wholly owned by the city, was established to manage the IT and related matters, and the equipment in question fall squarely within the mandate of the entity.
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