City cancels corrupt R161 million fire engine contract
19 November 2017
The City has decided to cancel a R161 million contract for the provision of fire engines after it was discovered that the tender was awarded on the basis of forged Bid Evaluation Committee (BEC) documents.
The agreement, entered into in 2015, was allegedly entered on condition that the contractor furnished the City with a performance guarantee of R16 million and that it demonstrated that it had sufficient cash flow to enable delivery.
A purchased order of R19 million was also issued in favour of contractor for delivery of the first set of fire engines to the City.
Alarm bells rang after the contractor not only failed to provide the performance guarantee but also failed to deliver the 29 new fires engines per the contract.