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R300m security tender scandal rocks Rustenburg municipality

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Mabotwane Security Services
Mabotwane Security Services

Opposition disapprove of Rustenburg ANC municipality’s deviation from tender specifications for security services

The EFF has called on the Hawks to investigate an almost R300 million Rustenburg local municipality security tender that has turned into a fierce legal battle between security companies.

EFF North West spokesperson Jerry Matebesi told City Press last week that the executive mayor, Mpho Khunou, and other managers at the municipality must be investigated for alleged corruption.

“If there was any wrongdoing, anyone who was involved must face the music,” Matebesi said.

The call by the EFF comes after Johannesburg-based security company Mabotwane Security Services obtained an urgent interdict from the Mafikeng High Court last month to stop a rival company appointed by the municipality from implementing the lucrative tender.

Mabotwane also wants the municipality to review the appointment of Ally’s Counter Force, based in Pretoria, arguing that its appointment was irregular and unlawful.

Mabotwane stated in court papers, which City Press has seen, that Ally’s was appointed despite failing to complete the MBD form (part of the document required for adjudication) and thus it was supposed to have been disqualified, as stipulated by the tender documents.

The interdict prevents Ally’s from rendering its services and allows the security companies that have been rendering services for the municipality to continue to do so, pending the outcome of the hearing, which will be held at a date to be decided.

“That the status quo in respect of the implementation of tender be maintained,” the court order says.

Documents in City Press’ possession confirm that the bid adjudication committee on the three-year contract security project recommended that Ally’s and Mabotwane be appointed last year.

Furthermore, the bid evaluation committee recommended that a legal opinion be sought on the recommendation to appoint two security companies, while the tender documents stipulated that only one successful company was supposed to have been appointed.

The technical report on security service providers shows that Mabotwane emerged number one after scoring 10 out of 10 points during the evaluation process.

Hwibidu Security Services emerged as runner-up after scoring six. Ally’s was third on the list after scoring only five points.

The report states that the technical evaluation team could not verify whether Ally’s was firearm-compliant and the address of their offices was not verified as they had not signed a lease agreement during site visits by the bid committee.

“The technical evaluation team was shown the firearm strongroom but could not gain access inside. The team could not verify whether the company was accredited for firearms, but was only told by the company CEO [chief executive officer] that they were accredited and had 90 firearms belonging to the company,” the report says.

Mabotwane was appointed but, despite scoring the highest points, was only required to provide 62 guards in less risky areas for just under R700 000 per month for three years.

However, Ally’s was required to provide the remaining staggering number of guards in other areas, including high risk ones, for over R8 million per month for the same period.

The tender required the successful company to provide a total of 518 guards for the municipality.

This move has left municipal insiders baffled. They said that they didn’t understand the rationale behind the municipality’s decision to deviate from the initial tender specifications.

However, Ally’s lawyer Mandla Tshabalala said that, according to the answering affidavit from the municipality, his client was not at “fault”.

“In our answering affidavit, we gave evidence that we complied. According to the municipality, the reason for wanting to review [the tender] was that they were not supposed to issue the tender to two companies,” he said.

Hwibidu managing director Walter Rachidi said the security company was considering taking legal action against the municipality.

“Our legal team has requested information from the municipality. How do you give a tender to a company which scored the lowest?” asked Rachidi.

He said the municipality must concede it made a mistake.

“This is a very stupid mistake. My advice to the municipality is that they must do the right thing and award the tender to the right company. We are not going to accept re-advertisement of the tender. We are going to challenge it,” he said.

Mabotwane declined to comment.

Municipal spokesperson David Magae refused to say more than: “The municipality, respecting the rule of law and its independence, will not make any further comment in line with the sub judice principle, until the matter has been finalised.”

The EFF’s Matebesi slammed the ANC-run municipality, describing the tender scandal as an attempt to raise funds for the ANC ahead of general elections in May.

He said the EFF would be joining progressive forces on the ground and in courts of law to get to the bottom of the cancer of corruption in the province.

DA North West premier candidate Joe McGluwa said the party raised the issue of the security tender at the recent portfolio committee meeting.

“We warned against the allocation of the security tender after it went to court.

“The DA is not surprised by what has happened as far as the adjudication of the tender is concerned,” he said.


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