Court invalidates R25.8 million Covid-19 contract in Ditsobotla municipality.
The Special Tribunal has declared unlawful and constitutionally invalid a R25.8 million contract awarded by the Ngaka Modiri Molema District Municipality during the early stages of the Covid-19 pandemic, finding that the North West municipality abandoned a lawful procurement process and improperly appointed a contractor that had never participated in the bidding process.
Judge Billy Mashile ruled in favour of the Special Investigating Unit (SIU), which had sought to review and set aside the municipality’s decision to appoint Rensh CC to undertake repairs and maintenance work at wastewater treatment facilities and pump stations in the Ditsobotla Local Municipality.
The case arose from an SIU investigation launched under a presidential proclamation authorising probes into allegations of corruption, maladministration and procurement irregularities linked to Covid-19-related spending. The investigation focused on the refurbishment and repair of four pump stations and a wastewater treatment plant in Ditsobotla, a municipality that had long struggled with sewage spills and deteriorating water infrastructure.
According to evidence presented before the tribunal, the municipality had already begun a formal procurement process before the Covid-19 pandemic was declared. In November 2019, it advertised a tender for emergency refurbishment work on dysfunctional pump stations, and several service providers submitted bids and bills of quantities in response.
