Nelson Mandela Bay fails to set aside SIU procurement report

The Eastern Cape high court in Gqeberha has dismissed an application by the Nelson Mandela Bay Municipality to review and set aside a Covid-19 procurement report by the Special Investigating Unit (SIU).

The report found that processes governing public procurement weren’t adhered to when the municipality appointed HT Paletona Projects to construct 2,000 toilets and standpipes at informal settlements.

“The municipality used the declaration of the state of disaster to circumvent proper procurement processes, which resulted in the award of a contract to the value of R24.6m,” SIU spokesperson Kaizer Kganyago said. “Only 200 toilets were built when the SIU issued a letter to the municipality to stop payment as the unit had referred the contract to the Special Tribunal for review.”

Kganyago said disciplinary referrals were made against two senior officials for their role in awarding the contract.

The municipality had argued the report was irrational and arbitrary, and influenced by material errors of law, which the court rejected in its judgment delivered on February 28.

Acting judge Rosaan Kruger said the municipality’s challenge was based solely on its aversion or dislike of the findings in the report. “That is not a reason for the report to be set aside,” Kruger added.

Kganyago said the SIU welcomed the court’s ruling and would continue to work with state institutions to prevent further financial losses and protect the interest of the state and the public from abuse.

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