Swellendam municipality is in the spotlight following scathing findings in an investigation report looking into irregularities in procurement processes of tenders. FILE
AN investigative report into alleged procurement irregularities at the previously DA-led Swellendam Municipality has lifted the lid on “systemic corruption” and recommended criminal charges against senior officials implicated in wrong-doing.
The investigation was launched following a formal complaint submitted by a councillor, detailing allegations related to irregularities in procurement processes of at least three tenders. However the span of the investigation also included other tenders after further allegations of irregularities were received. Council then tasked Advocate Etiene Vermaak with undertaking the investigations on October 30.
The long list of findings contained in Vermaak’s report dated 1/12/2024 included, “discrepancies in bid scoring, with unexplained adjustments favouring a certain bidder during the evaluation phase”.
“Review of documents reveals a lack of transparency in the exclusion of certain bidders during the functionality scoring stage. The attendance register for the site briefing indicates possible forgery, with entries that do not correspond to actual attendees.
“(Tender) SMT19/23/24 was initially advertised and only one response was submitted. However, the only bidder was informed of a lack of funding after submissions were made. (Tender) SMT22/23/24, which replaced SMT19/23/24, was issued shortly after the cancellation of the former tender.
“The abrupt re-advertisement raises questions about the fairness and competitiveness of the process,” states the report.
“Municipal officials have misrepresented to council the idea of a competitive bidding process in the procurement of these companies. The fact that work was done and paid for by the municipality to a service provider who was never appointed by the municipality is a serious form of financial misconduct / irregular expenditure and possible corruption.”
Vermaak’s recommendations included that the municipal manager be held accountable in terms of the “Disciplinary Regulations for Senior Managers of 2010 for interfering unfairly in procurement processes which was initially advertised and only one response was submitted”.
“The Municipal Manager then cancelled SMT 19/23/24 due to a ‘lack of funding’, but shortly thereafter SMT22/23/24 replaced SMT19/23/24, which was for the same purpose. As there were suddenly sufficient funds for SMT22/23/24, the motivation of the Municipal Manager to cancel SMT19/23/24 appears to be untrue”.
Vermaak additionally recommended that the municipality “address the conflict of interest” between a father and son. The son works for an engineering company that receives tenders from the municipality, while the father advises the municipality on the award of the tenders, “to the detriment of other service providers, who were eliminated unfairly on unjustified grounds”.
Municipal manager Anneleen Vorster was suspended by then Speaker Juan van Schalkwyk last year pending an investigation into alleged misconduct within the supply chain process. Swellendam then had three acting Municipal Managers in a month.
Local Government MEC Anton Bredell intervened and confirmed that the suspension of Vorster did not follow due process and the subsequent acting appointments were also flawed.
Vorster did not respond to questions on the findings of the report and what action had been taken with regards to the recommendations by deadline.
Van Schalkwyk has since resigned as FF+ councillor after he recently helped the ANC remove DA mayor Francois du Rand. The municipality currently has no mayor nor a Speaker.
Bredell's spokesperson, Wouter Kriel said the MEC was aware of the existence of the report, but do(es) not have knowledge of the contents thereof.
“It appears that the report is the subject of disciplinary proceedings dealt with by the Municipality.”
GOOD party secretary general Brett Herron called on Vorster to be removed in light of the report’s findings.
“The investigative report provides crucial context to the dramatic suspension and reinstatement of the Southern Cape town’s Municipal Manager Anneleen Vorster late last year, as well as the recent ousting of the DA Mayor Francois du Rand in a motion of no confidence brought by the ANC and supported by the FF+.
“The FF+ councillor, who held the position of Speaker, resigned on principle last week after being instructed by his party to vote to reinstate the DA mayor – leaving the town with neither a Speaker nor a Mayor. Vorster must go. The Vermaak report triggers a legal obligation on the Mayor and the Council to follow the Regulations for Disciplinary Action against Senior Managers. A failure to do so constitutes maladministration which requires MEC Bredell to intervene in terms of Sec 106 of the Municipal Systems Act,” Herron said.
Cape Times