Limpopo in the grip of a new tender scandal

The newspaper says documents in its possession show that Manthata's company, Selby Construction, was last month awarded a contract valued at more than R71m - even though he had tendered for R47m. The contract was for the upgrading of a water treatment plant as part of the Mametja Sekororo regional water scheme. According to Selby Construction's appointment letter, signed by Mopani municipal manager Timothy Maake on 12 September, the company has been awarded the contract 'in accordance with the tender document at a total amount of R71 987 867.39, which includes contingencies and VAT'. However, the municipality's tender evaluation report, dated 12 August, showed Manthata had tendered R47 754 248.71 for the same job. The report says Manthata was not available for comment. Mopani municipal spokesperson Neil Shikwambana said there were two separate tenders and the water plant contract awarded to Selby Construction was estimated at R75m. Shikwambana is quoted in the report as saying: 'The tender that you are incorrectly alleging that it has a cost R45 million and we have awarded to Selby Construction at a cost of R71 million, is actually the one that has been awarded to another service provider, which is the building of a command reservoir.' Full report in The Sunday Independent (subscription needed)

Staying with tender troubles in Limpopo: Public Protector Thuli Madonsela says tenders awarded to On-Point Engineers by the Limpopo transport department were unlawful, notes a report on the News24 site. 'The awarding of (the) tender by the department to On-Point was unlawful, improper and constituted maladministration,' she said. Madonsela found On-Point and former ANC Youth League leader Julius Malema benefited improperly from the contract. Malema's business partner Lesiba Gwangwa is chief executive of On-Point. Madonsela presented her findings in a report on corrupt practices in Limpopo entitled: 'On the Point of Tenders'. Madonsela found the department did not follow proper guidelines in awarding the tender. The total amount paid by the department to On-Point in terms of the contract at the end of June 2012 was R43 868 900. Full report on the News24 site See also a report in The Times

The provisional report bodes ill for Malema and the defence raised by his business partner has only made it worse, notes a Mail & Guardian Online report. According to the report, Malema's business partner, Gwangwa, says he was gifted 50% of a company that had just won a potentially lucrative tender with the Limpopo provincial government because he is smart and well-connected. The report says Malema himself may not be thrilled with that praise-singing. According to the report, Madonsela said Malema was at first the sole trustee (and later a joint trustee, with his 83-year-old grandmother) of the Ratanang Family Trust. That trust was one of only two shareholders in holding company Guilder Investments. Guilder, in turn, owned On-Point. And On-Point, Madonsela said yesterday, was most certainly dirty. It lied to win the contract in the first place, and once won, set up a structure to receive kickbacks, the report notes. Of this, she said, there is 'incontrovertible proof', according to the report. Gwangwa, in his response to the provisional report, drew the line from On-Point directly to Malema himself, the report notes. Full Mail & Guardian Online report Full Public Protector's report (PDF)

Malema has hit back, accusing Madonsela of finding him 'guilty in absentia', notes a report on the iafrica.com site. It quotes Malema as saying in an SABC radio report: 'You can't find a man guilty in absentia. You cannot say to a man in absentia: ''You are guilty and therefore we are going to take everything you have and let you walk naked''.' Full report on the iafrica.com site