ANC hid damning report into R60 million Pikitup waste tenders 

29 November 2017

Following my instruction to launch an investigation into Pikitup’s acquisition of six unused waste crushers in 2014, at an alleged cost of R36 million, I have today received a report of an investigation conducted by Sizwe Ntsaluba Gobodo Incorporated in 2016 into the same tender.

This is a clear example of how the previous administration swept corruption under the carpet by hiding the outcome of these forensic investigations.

To my alarm, it has been determined that the actual cost of this contract was over R53 million – inclusive of 36 months of full maintenance and training of Pikitup staff.

The same bidder was also awarded a tender for the provision and full maintenance of four green waste chipping machines, at over R6 million.

Based on the report, one waste crusher at Robinson Deep Landfill Site and two waste crushers at the Marie Louise Landfill Site were not operational. The report further states that “due to shortage of rubble”, the crusher at Goudkoppies Landfill Site had to be parked.

Of the four green chippers, only the one at the Linksfield Garden Site is operational.

Although the 2016 investigation was requested by officials who previously held management positions at the entity, the recommendations have not been implemented.

As this report has now landed under the magnifying glass on my desk, I will need my predecessor, Cllr Parks Tau, to explain how over R60 million could have been misspent under his watch, while the City faces a R170 billion infrastructure backlog.

The report also highlights the following red flags:

- the Bid Evaluation Committee (BEC) approved procurement of six rubble crushers, but the Waste Management Plan (WMP) provided for only four;

- the tender was advertised for less than the required 14 days;

- the BEC members failed to diligently evaluate the bids;

- the minutes of BEC meetings where recommendations were made are unavailable;

- the increase in the number of green chippers were not properly authorised;

- at the time of the report there was no usage reports for the green chippers; and

- the allocation of project managers to the contracts were not formalised.

I was also disturbed to learn that the three year maintenance cost for these machines was paid up front, in full. This totalled over R15 million and it is questionable as to what maintenance has been done, if any. I will be requesting the City’s legal team to investigate options available to recoup this public money.

I will also provide this report to the Managing Director at Pikitup, Mr Lungile Dhlamini, so that he can ensure that the recommendations made in the report are implemented.

For years, shameless outright looting was the norm in Johannesburg. Corruption does not just steal from the City. It robs residents of much needed services and resources. This is why corruption has no place in this administration and we will work tirelessly to eradicate it.

I would like to commend the GFIS team for vigorously investigating any allegations of fraud and corruption brought before them by the members of the public and the Hawks for the continued support.

I would also like to encourage people to report any fraud and corruption activities through our 24hour tipoff hotline 0800 002 587 or visit the GFIS offices situated at 48 Ameshoff Street in Braamfontein.

Issued by Luyanda Mfeka, Acting Director of Communications, Office of the Executive Mayor, 29 November 2017