City of Tshwane launches investigation into controversial property development tender

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Steven Mokgalapa, burgemeester van Tshwane. Foto: Sarel van der Walt
Steven Mokgalapa, burgemeester van Tshwane. Foto: Sarel van der Walt
Foto: Sarel van der Walt

The City of Tshwane is investigating alleged corruption surrounding a controversial property development tender.

Mayoral spokesperson, Omogolo Taunyane, said mayor Steven Mokgalapa launched the investigation to "set the record straight" following news reports of allegations of corruption between the City and engineering consultancy, Aurecon.

In April 2018, the City appointed the company to advise which of its 52 000 properties must be developed, leased or sold across its R10bn property portfolio.

Taunyane said the contract was valued at R14m. 

eNCA reported that two months before the contract was awarded, a senior municipal official, who worked in the unit that initiated the contract, resigned. The official is reportedly now consulting for Aurecon on the project.

"On December 14, 2017, the Bid Adjudication Committee (BAC) approved for the usage of a panel for a Request For Quotes (RFQ) for the required services. Supply Chain Management approved the RFQ from the panel which was approved by the Executive Audit Committee. The effective date of the contract as per the Service Level Agreement was April 20, 2018," Taunyane said.

He said the payment schedule provided for R 5.6m for services rendered for the 2017/18 financial year ending June 30, 2018. It allowed for an additional R6.8m to be paid in April 2018 for the 2017/18 financial year ending June 2018. The last payment was for R2.2m in July 2019 for the 2019/20 financial year ending June 2019.

"Having said that, any allegation of corruption or wrongdoing is one that Mokgalapa takes seriously. It is for this reason that the City instituted a forensic investigation to decipher whether any legislation was ignored throughout the process of the contract being awarded," Taunyane said.

Taunyane said Mokgalapa has requested that the City be given the opportunity to conduct its own investigation.

"Once concluded in approximately eight weeks, the outcome will be shared with the public. This administration remains vehemently opposed to corruption in all its forms. As such, those found to have flouted any legislation in this regard will face the full might of the law," said Taunyane.

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