Boss given written warning over tender

2010-05-13 11:48

The Ithala group chief executive was given a written warning for not following required tender procedures, said KwaZulu-Natal MEC of economic development and tourism, Mike Mabuyakhulu, today.

Last year it was reported that Ithala’s chief executive, Sipho Tshabalala, awarded a multi-million rand tender to Domber-Chithey Consulting Projects without following proper processes.

Ithala is a state-funded KwaZulu-Natal development bank.

Mabuyakhulu said: “Following the publication of these allegations the task team was constituted.”

He said the team found that no tender was advertised for the appointment of Domber-Chithey.

The reason given was that Domber-Chithey presented a different model of delivery compared to others.

Mabuyakhulu said the task team felt that delivery had been faster and better co-ordinated.

He said even though the board felt delivery was quick, tender procedures should not be flouted: “The board is satisfied that there was no personal benefits acquired by the group chief executive.”

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