Public Protector to investigate R631 million toilet tender
24 March 2015
Yesterday, 23 March 2015, the Office of the Public Protector confirmed to me, in writing, that an investigation into the R631 million tender awarded to the Siyenza Group will be investigated. The investigation will be conducted by the Governance and Integrity Branch.
At the end of February, the Saturday Dispatch broke the story of the Amathole District Municipality (ADM), in the Eastern Cape, awarding a tender worth R631 million to build 66 000 toilets. The tender was awarded, without following the proper procurement procedures, to the Siyenza Group, a company which has close ties to senior ANC officials, namely President Jacob Zuma, ANC Secretary-General Gwede Mantashe and Small Business Development Minister Lindiwe Zulu.
It was further established that there is no record of the Siyenza Group being registered with the Companies and Intellectual Property Commission (CIPC), nor is there record of the company being registered with the Construction Industry Development Board (CIDB), a requirement for any construction company involved in projects in the public sector.
I have also received correspondence from the Development Bank of Southern Africa (DBSA) confirming that in August 2014 it "approved a total loan facility of R631.8 million to the ADM..." R286 million of which has been "disbursed thus far" for this particular project.