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City Of Tshwane Probes R15m Tender Fraud

Solly Msimanga

Tshwane mayor Solly Msimanga has vowed to take action against former Tshwane metro police (TMPD) chief Steven Ngobeni for being implicated in a R15-million tender fraud within the department.

Mayor says if the allegations are true, the city will activate administrative actions to ensure that some of the money is recovered.

According to a preliminary report from the public accounts committee, Ngobeni and three other former officials allegedly led the city to “suffer a minimum loss of R15 181 430.63” as a result of “flouting” supply chain management procedures.

The report was based on a previous forensic report by PSMA Holdings in 2010, in which Ngobeni was implicated, but no action was taken.

“In consultation with the city manager, I will launch a full forensic investigation into exactly how ratepayers’ money, meant for their safety, was used for what appears to be self-interest,” said Msimanga .

“The forensic investigation will be charged with looking into the exact transactions that led to the money being misappropriated and how the city can best recover these funds.”

The report revealed that the four officials allegedly created orders of up to R10 000, but did not follow the formal “three quotations” rule.

They also sourced quotations themselves, instead of through the procurement unit. In addition, 23 orders were made on the same day to one company.

Less than three months later, a further 33 orders were again made to benefit the same supplier. The officials also apparently gave preferential treatment by awarding tenders to the same companies.

As executive director of property protection, Ngobeni allegedly signed off the deals, claiming the money was meant for procuring security systems for the city.

The report found Ngobeni allegedly also authorised contracts for an official whose wife had been a director at the company providing the service. Yet those systems reportedly never materialised, despite the money having been spent, Msimanga said.

“If, indeed, the claims are true, we will not hesitate to exact the necessary disciplinary and criminal action against those implicated. We will also activate administrative actions to ensure that some of this money is recovered.”

Ngobeni, whom Msimanga, during his election campaign vowed to remove, stepped down after an agreement with the mayor in May, after the former police chief failed to control disruptions by the ANC during the state of the capital address in April.

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Written by How South Africa

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