Tenders under fire as local businesses slam Sol Plaatje’s 'piggy bank politics'

LOCAL businesses that were sidelined in favour of a contractor from outside the city to refurbish the Floors community hall have called for a forensic investigation into how the multimillion-rand tender was awarded.

The managing director of the appointed company – Mabalane A Seven Construction and Projects – is Makome Julia Matlala.

According to the registration details, the company’s physical address is listed as Lephalale, Limpopo, although its website states that it is based in Pretoria, and the letter of acceptance indicates that it is situated in Kathu.

The contract form, signed by Sol Plaatje municipal manager Thapelo Matlala on June 11, stipulates a payment of R3.9 million within 30 days of receipt of the delivery note.

While Sol Plaatje Municipality has not outlined the scope of work or confirmed whether local labour was employed in the upgrading of the community hall, the local business community believes the project entailed basic repairs, tiling, and painting – none of which require specialised skills.

Concerns have been raised over the coincidence that the CEO and the municipal manager share the same surname, and that the company is reportedly based in Limpopo – the province where Thapelo Matlala previously served as municipal manager of the Greater Tzaneen Municipality.

The Floors recreational hall has been fenced off, with ADT Security branding visible on the premises, although no CCTV cameras have been installed as yet.

Objections were raised regarding the security tender, which was approved by way of an emergency deviation for 15 municipal sites around the city. The reported cost is R1.7 million for a 12-month period.

Councillors questioned the urgency of securing the tender and why internal security was not utilised. It was noted that some of the sites do not have any cameras installed and that the municipality does not have access to the live CCTV footage.

Calls to scrutinise municipal tenders

Boyce Makodi from the Kimberley Action Group (KAG) has urged that all tenders approved by the under-fire municipal manager — who faces allegations of corruption, maladministration, and interference in procurement processes — be placed under scrutiny.

“A forensic investigation is needed, not only to hold Matlala accountable but also to expose everyone who has been using the municipality as a personal piggy bank,” Makodi said.

He added that the procurement processes surrounding this tender must be investigated to determine the relationship between Thapelo Matlala and Makome Julia Matlala.

Makodi stated that awarding the tender to an external company showed “complete disregard” for local enterprises, reinforcing the perception that candidates from Limpopo are being given preference when it comes to business opportunities and employment in Kimberley.

'Local business is continually overlooked'

The provincial chairperson of the National African Federated Chamber of Commerce and Industry (Nafcoc), Abraham Malo, pointed out that local businesses are continually “snubbed”.

“Business owners are discouraged as they do not get tenders in their own town. It’s no use complaining – without financial backing or capital resources, small businesses simply do not have the means to challenge irregular procurement processes in court,” said Malo.

“This is despite the fact that local businesses are capable of doing the work.”

Sharon Steyn, CEO of the Northern Cape Chamber of Commerce and Industry (Nocci), demanded that the municipality be transparent and publicly disclose the criteria used to appoint the contractor.

“How do we know this tender was not awarded to a family member? The municipality is supposed to attract investment to the city and ensure the local economy grows. It is unacceptable that beneficiaries from outside the province are enriching themselves while local businesses are excluded,” she said.

Steyn added that this included tenders awarded for water distribution trucks during shutdowns and the procurement of water pipes.

“Ratepayers, businesses, and the community are being treated like third-class citizens. The municipality must make public every tender it awards and declare why local enterprises were not successful. Sol Plaatje Municipality must report to us – not the other way around.”

DA councillor: Answers still awaited

DA councillor George Joseph said they were still awaiting answers regarding a number of tenders, including the one for the Floors community hall refurbishment.

Media enquiries directed to Mabalane A Seven Construction – including requests for clarity on whether there is any familial connection between its managing director and the Sol Plaatje municipal manager – were not responded to by the time of publication.

Sol Plaatje awaits a written explanation

The spokesperson for the Office of the Mayor, Keobakile Musunse, acknowledged the public interest surrounding the allegations of misconduct involving municipal manager Thapelo Matlala.

“Following a duly convened council meeting on September 4, the municipal manager was formally afforded the opportunity to submit written representations within seven days. As per the legal framework, council will consider the written representations within seven days of receipt of the report,” Musunse stated.

Pump stations in disrepair despite millions paid over

Meanwhile, the Roodepan pump stations – believed to be included among the tenders under investigation by the Hawks, the Public Protector, and the Special Investigating Unit – are not operational and have fallen into a state of dereliction, despite R6.8 million being paid for refurbishments.

Parts of the fencing and barbed wire at one of the pump stations have collapsed, while no sewage is currently being pumped at either site.

This is in spite of a further R12.1 million having been paid for upgrades at the Roodepan and Legaeng pump stations, while the municipality claims that work at the Eagle Street pump station is 63.5 percent complete.