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Hawks probe NW muni for tender fraud

───   06:46 Mon, 11 Mar 2019

Hawks probe NW muni for tender fraud | News Article
Executive Mayor Mpho Khunou (PHOTO: ANA)

The Hawks have confirmed that it is investigating the Rustenburg local municipality for allegations of tender fraud amounting to R85-million.


SABC reports they raided the municipal offices earlier this week relating to mechanical work at the Bospoort Reservoir. 

Spokesperson Hlangelani Rikhotso says they cannot disclose more information at this stage as that may jeopardise the investigation. 

Executive Mayor Mpho Khunou has however disputed any fraud relating to the tender. 

He insists the service provider was appointed after following a rigorous and intensive procurement process.

"It was a bit dramatic and unnecessary, especially considering the fact that the municipality has been cooperating. This heavy-handed approach by the Hawks where they are looking for things that we are not responsible for, that is something that remains quite baffling. But we will take that up with the relevant authorities," Khunou said.

He added the raid was based on issues relating to Bonakude Consulting, which dealt with the review of financials; CMS Water Engineers, which was under the Municipal Infrastructure Grant; and Ultimate Dynamic, which was awarded by the Water Services Trust in Rustenburg.

"The major issue was the R85 million tender awarded to CMS Water Engineers for the Bospoort Dam construction material in May 2018. Only R25 million was used and a physical verification of the materials was done on 26 February 2019. "

 The municipality said it had provided the Hawks with the bid files in relation to Bonakude as well as CMS Water on two occasions - November 2018 and December 2018. 

"These documents of which the search and seizure was obtained were in actual fact already in the possession of both the Klerksdorp Commercial Crime Unit as well as the Pretoria Commercial Crimes Unit.

"It is further concerning that a search and seizure was obtained and effected for a company named Ultimate Dynamic (Pty) Ltd which in actual fact is not a contract managed by the Rustenburg Local Municipality but rather the Rustenburg Water Services Trust," he said.

"It is therefore concerning that a search and seizure was obtained and effected for information that is already in the possession of the Hawks as well as on a contract not awarded nor managed by the Rustenburg local municipality." 

-African News Agency (ANA) / SABC

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