The Inkatha Freedom Party-led (IFP) Amajuba district municipality, anchored in Newcastle in northern KwaZulu-Natal, is facing a threat of legal action after it allegedly flouted procurement rules while issuing a tender worth R89-million.
This comes after the municipality irregularly awarded the tender to a company called SNA Construction CC on Monday this week.
Flouted own procurement rules
The municipality awarded the tender for wastewater and sanitation at Goedehoop. It did this while the window for objections was still open. This process was in breach of the municipality’s procurement rules.
In a letter dated July 21, the municipality wrote to all companies that bid for the tender. It notified them that it intends to award the tender to SNA Construction CC.
“In terms of section 49 of the Amajuba District Municipality Supply Chain Management Policy, a person aggrieved by decisions or actions taken in the implementation of the Amajuba District Municipality Supply Chain Management System must lodge within 14 days of the decision or action an objection or complaint. Objections or complains (sic) must reach the municipal managers’ office within 14 days from the date of this notice,” reads the notice.
On the same day, the municipality wrote to SNA and notified it that it had been awarded the tender. This effectively closed the room for aggrieved parties to lodge their objections for adjudication.
Tender date pending objection period
“You are hereby advised that your company, SNA Construction CC, has been appointed for the construction of the Goedehoop bulk water and sanitation phase 2 for Amajuba district municipality,” reads part of the letter.
Strangely, the municipality told the company that the appointment will come into effect after the 14-day objection period.
“The contract duration is 18 months, effective after 14 days from the date of the appointment,” the municipality added.
According to documents seen by Sunday World, the company accepted the offer on the same day. This makes it legally binding.
As a result of this debacle, one of the losing bidders, Umpisi Construction and Plant Hire, has written to the municipality and asked it to explain why its bid, which was valued at R71-million, was turned down.
It also wants to be furnished with minutes of the bid adjudication committee within five days. This as it intends to seek a court review to set aside the award.
The municipality did not comment when it was asked about the matter.
