Cape Town cuts vendor list

2012-05-21 08:52

Cape Town - The City of Cape Town is to cut its vendor database by over half after finding that some companies secured business by irregular or fraudulent means, the Cape Times reported on Monday.

A study by Deloitte, initiated by mayor Patricia de Lille and city manager Achmat Ebrahim, recommended that the database of 27 000 companies be "cleansed", reducing the number to 12 000.

Irregularities uncovered included councillors and other employees doing business with the council. De Lille said the Auditor General identified 17 irregular cases for 2010/2011.

"All tenders above R5 million will go through a due diligence process before they are awarded," she said.

According to a recent supply chain management report discussed by the mayoral committee last week, in the last quarter the city had made progress in dealing with the tender allocation problem.

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