City of Tshwane to spend R15m on work GladAfrica was paid R500m to do
23 May 2019
The City of Tshwane will spend R15m this year on developing in-house project management capacity - a job that it paid GladAfrica nearly R500m over two years to do.
In his budget speech presented to the Tshwane City Council on Thursday, Mayor Stevens Mokgalapa said R15m would be spent on an "Enterprise Project Management Unit… in-house capacity building", to be located at the City’s headquarters, Tshwane House.
GladAfrica was appointed in November 2017 as a project management consulting firm, with a wide-ranging mandate to manage most aspects of the City’s capital expenditure budget, specifically related to infrastructure projects. The Auditor-General found that the procurement process was irregular.
According to council minutes from a February 28 sitting, the City of Tshwane paid R495 718 909.52 to GladAfrica from its inception in November 2017 until February 20 this year. The minutes also reflect that, as of February 28, the City estimated that it still owed GladAfrica more than R94m in payments.