Call for tender shake-up in wake of abuse

Of particular concern, reports Legalbrief, is that in eight of SA's nine provinces companies run by public servants are doing business with their provincial governments. Now the tripartite alliance in Gauteng has proposed a complete overhaul of procurement policy to ensure transparency, prevent corruption and speed up service delivery. Business Day reports that this is the province's response to the barrage of criticism of the manner in which tenders have been used by the ANC for political patronage. Cosatu provincial secretary Dumisani Dakile said the government must build its own capacity to provide services to the people rather than appoint private companies. The report says the alliance also wants the tender process to be made public from when it is advertised to when it is awarded, and favours the removal of red tape to speed up delivery. Full Business Day report

Eight of the nine provinces have been shown to have companies run by public servants doing business with their respective provincial governments. According to a Business Day report, this was revealed in a parliamentary reply by Co-operative Governance Minister Sicelo Shiceka. Shiceka's revelation that only in KwaZulu-Natal were provincial employees not doing business with the province follows an Auditor-General's report that thousands of public servants, across national and provincial departments, were doing business with government at one level or another. In reply to a question from DA MP Martie Wenger about the finding that 62% of provincial departments did not comply with regulatory requirements, Shiceka said that in eight provinces there was 'transversal' or 'entities that are connected to government employees doing business with departments'. Full Business Day report

Staying with conflicts of interest, the ANC would make R1bn if the World Bank grants Eskom a $3.75bn (about R22bn) loan to finance its contract awarded to Hitachi Power for work on the Medupi Power Station, says DA leader Helen Zille. The ANC's investment business, Chancellor House, has a 25% shareholding in Hitachi Africa, the report on the IoL site says. Zille alleged that the tender was awarded to Hitachi Power Africa because of the presence of Valli Moosa, who was Eskom chair when the contract was awarded. Full report on the IoL site

In other matters, a legal battle is brewing between Transnet and a company linked to Communications Minister Siphiwe Nyanda, according to a report in The Times. Abalozi Risk Advisory Services, of which Nyanda was a director before being appointed to Cabinet, is unhappy with a ruling by a Transnet disciplinary hearing which implied the company was the recipient of an 'irregular' tender. The company, previously known as General Nyanda Security, has alleged in court papers that it and one of its directors, Sylvester Sithole, were defamed by Nazeer Cassim SC who presided over the hearing. Cassim was appointed to chair disciplinary hearings against two senior employees at Transnet for 'serious misconduct'. At the centre of the storm is the awarding of a multimillion-rand tender to GNS by Transnet in 2007, the results of which has seen two of the state-owned company's employees found guilty of misconduct. Transnet Freight Rail CEO Siyabonga Gama is also facing disciplinary charges after he was accused of exceeding his mandate for awarding the security contract said to be worth R55m, notes the report. But the company's attorneys are pleading with the South Gauteng High Court to set aside parts of the findings which it deems were 'prejudicial' against its client. Abalozi accuses Cassim of having 'castigated and defamed' their client 'without just cause' since his findings only related to disciplinary matters against Transnet employees and not the company. Full report in The Times

Cassim's findings have left Nyanda furious and Sithole demanding an apology, says a report in The Sunday Independent. Gama, who until the controversy was in the running to replace Maria Ramos as Transnet boss, also hit back at Cassim's claims that he had been part of a conspiracy in an unlawful transaction. 'We wish to express our strong condemnation of your obvious political and business role you seem to eloquently play in summarily ''hanging'' Gama who did not even appear before you,' said his lawyer Themba Langa in a letter to Cassim. Lawyers for Sithole have demanded an apology from Cassim for alleged defamation. The running thread in all the attacks on Cassim is that he made adverse findings against Nyanda's company, Sithole and Gama, who were not part of the disciplinary hearing chaired by Cassim. They claim, in separate correspondence, that Cassim never solicited facts or comments from them before he prejudiced them in his ruling. Cassim, however, has apologised, saying he did not intend to injure Sithole's feelings or dignity. Full report in The Sunday Independent (subscription needed)

Public Protector Advocate Thulisile Madonsela has turned back a complaint filed by the DA regarding a tender awarded to Nyanda's company. DA MPL Jack Bloom said he had written to Mandonsela asking her to investigate the apparent conflict of interest in a R67.8m contract awarded to Nyanda's security company, GNS Risk Advisory Services, by the Gauteng Department of Roads and Transport. But, according to a report in The Citizen, the Public Protector has told Bloom he must to use the correct channels to lodge his complaint. 'Since Bloom is based in Gauteng, he can only complain about the Premier or one of the province's MECs. This complaint can only be submitted to the Public Protector by the DA's national or parliamentary leader,' a spokesperson said. But Bloom described the process as 'ridiculous'. 'Any member of the public can lay a complaint with the Public Protector,' he said. Full report in The Citizen