DA challenges 'blatant disregard for rules' in R5.5m Gauteng tender controversy

The ANC and DA spat in Gauteng appears to intensify after the DA filed a formal complaint with the Public Protector regarding a contentious R5.5 million tender awarded to Xaba Holdings, an East London-based company.  

This is despite the tender advertising document, seen by the publication, stating that only Gauteng-based companies could apply.

This decision has sparked accusations of violating tender specifications, raising serious questions about fairness in the procurement process.

The tender, which is aligned with the provincial government's "Growing Gauteng Together (GGT 2030)" plan, was notably aimed at organisations based within the province. 

However, Xaba Holdings, whose headquarters fall outside of the province, was awarded the tender to oversee events that promised economic benefits. 

The controversial allocation involved R3.5 million for a boxing tournament that was scheduled for the 2023/24 financial year, and an additional R2 million designated for a boxing event last year that honoured Nelson Mandela's legacy as a boxer.

In the letter addressed to PP Advocate Kholeka Gcaleka, Kingsol Chabalala, DA Gauteng Shadow MEC for Sports, Arts, Culture and Recreation, expressed apprehension over the implications of awarding the tender to a company that did not meet the eligibility criteria. 

"This is a blatant disregard for the rules," Chabalala stated, urging the Public Protector to undertake a thorough investigation into the matter. 

"If it is confirmed that the company was based outside of Gauteng, we need to understand how such a critical decision could have been made." 

He has requested that the investigation focus on crucial questions surrounding the legitimacy of the tender process.

He further asked if Xaba Holdings was indeed based outside of Gauteng at the time of application and award. "What rationale was used to justify awarding a tender to a non-compliant bidder? Were proper procurement procedures, including principles of fairness, transparency, and competitiveness, adhered to, and what remedial actions could be appropriate under the circumstances?"

The complaint comes at a time when the Gauteng Department of Sports, Arts, Culture, and Recreation is already under scrutiny. 

The DA accused the government of forsaking Premier Panyaza Lesufi's commitments made during his recent State of the Province Address, where he promised to create opportunities for young people and boost small business growth.

Adding to the complexity of the situation, President Cyril Ramaphosa authorised the Special Investigating Unit (SIU) to probe allegations of maladministration and corruption within the department. 

This inquiry will examine various contracts, including those for a surveillance CCTV system and the Heritage Day Social Cohesion Carnival, focusing on whether procurement processes adhered to National Treasury guidelines and seeking to identify systemic failures.

The ultimate goal is to pinpoint any misuse of funds and recommend measures to avert future fiscal mismanagement.

Department MEC Matome Chiloane’s phone rang unanswered on Thursday. However, answering questions in the legislature, he conceded that the tender was awarded to Xaba.

He also said that the Tournament was supported through the Provincial Bidding and Hosting Committee in response to the 6th Administration's elevated priorities.

mashudu.sadike@inl.co.za