DA pressure leads to probe into possible tender rigging in Ba-Phalaborwa

The Democratic Alliance (DA) welcomes the decision of the Limpopo MEC for local government, Mr. RB Makamu, to order a preliminary investigation into possible tender rigging in the Ba-Phalaborwa Local Municipality.

This follows the DA’s discovery that Ba-Phalaborwa had apparently circumvented competitive bidding processes in awarding two capital projects in June and July 2019. We wrote to the MEC on 3 January this year, and his decision was communicated to us on Friday. The original statement and letter can be accessed here.

Although tender rigging is not unusual in municipalities with big ANC majorities, what makes the Ba-Phalaborwa case exceptional is the availability of clear documentation pointing to wrongdoing. And so there should be no quick escape for the responsible officials and politicians.

In one instance a company was appointed to refurbish the Namakgale Stadium in June 2019, but no evidence exists that a tender for such a project was ever advertised or awarded. Two days after receiving its letter of appointment, the company invoiced Ba-Phalaborwa for nearly R500 000 of work. A day later, and despite its woeful cash position, the municipality paid the invoice in full.

We believe that the Mayor of Ba-Phalaborwa, Cllr Merriam Malatji, had prior knowledge of the information in the DA’s possession. Our information points to serious financial misconduct by the municipal manager, and prompts a further probe into possible corruption.

The mayor is required by the Municipal Systems Act to report such a matter to the municipal council within seven days of becoming aware of it. The council then has to decide whether the implicit allegations warrant the appointment of an independent investigator. But in this case, the material facts were not disclosed to councillors.

Instead, the matter was fobbed off to a committee of councillors that has no mandate to deal with allegations of serious misconduct or corruption. Ba-Phalaborwa being an ANC controlled council, the committee is also dominated by the ANC.

While we welcome the MEC’s response, we urge him not to succumb to internal ANC politics, and to ensure that the preliminary investigation is not manipulated to protect ANC cadres in Ba-Phalaborwa’s council or administration.