City to blacklist dodgy contractors

2011-03-01 13:39

The eThekwini Municipality has approved a hard-hitting blacklisting policy to freeze out dodgy contractors from doing business from the city.

The policy, which was approved by full council this week, will also prevent blacklisted contractors from forming new companies to continue trading with the city.

The new policy comes on the heels of a scathing auditor general’s report for the 2010/2011 financial year which slammed the city for its dysfunctional supply chain management system and poor tender adjudication processes, including councillors and government officials illegally doing business with the city.

The blacklisting policy will see companies barred from doing business with the city for between one and three years if they are found to have been guilty of fronting and a number of other offences.

These include:
» bribery or attempted bribery of council officials either with money or any other kind of reward;

» falsifying tender eligibility documents;

» failing to carry out the work tendered for;

» failing to complete work on time;

» delivering sub-standard work;

» collusive tendering and

» anti-competitive behaviour.

It will also prevent contractors who have been blacklisted by another other municipality or government department from doing business with the city.

It will make it impossible for contractors “reorganising” their company and tendering under another name.

It bars any person who has a criminal record for an offence which carries a minimum sentence of six months in jail with no option of a fine from doing business with the city.

The policy will be implemented by a blacklisting committee appointed by the city’s supply chain management unit, while the names of companies that have been blacklisted will be published and given to the national treasury to prevent sanctioned companies from doing business with government elsewhere.

The new blacklisting policy has drawn rare praise from opposition parties, who have also been highly critical of the city’s tendering processes.

DA Executive Committee member Colin Gaillard described it as “very welcome” and “a long time coming”.

“This will allow us to track how those who violate tender procedures are being dealt with on an ongoing basis and will stop companies who have been barred from reconstituting themselves and reappearing and will help the city get proper value for money from those it does business with,” Gaillard said.

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