How Emfuleni wasted millions: Officials, tenderpreneurs and private sector companies fingered for fraud

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The embattled Emfuleni Local Municipality paid the company of billionaire businessperson and ANC benefactor Robert Gumede R16.2m for an expired cellphone services contract and settled a R1.2m security bill at the guesthouse of former mayor Simon Mofokeng

Municipality to charge officials of pouring money down drain, bringing service delivery to a halt

. Wesizwe Risk Solutions was paid R17.6 million after a security tender between the council and BBP Security Services was fraudulently transferred to the company; . The council incurred irregular expenditure totalling more than R1.2 million after paying for the security at the guesthouse of its former mayor Simon Mofokeng.Comperio’s report on Mafoko shows that in February 2015 Emfuleni signed a service level agreement with the firm for the provision of security for three years.

“The expenditure incurred in terms of the contract was irregular. The municipality’s contract with Mafoko was further extended until the end of July last year without following due process. As per invoice analysis, it appears as if Mafoko inflated invoices, said the report.In June 2006 and September 2007, Emfuleni and Vaal Toyota signed two five-year agreements for the latter to lease and maintain vehicles to the council.

It shows that although the 2007 contract was signed with Vaal Toyota, it was New Vaal Motors which had submitted the bid.New Vaal Motors, the report said, had submitted an expired tax clearance certificate belonging to the Hallmark group.Comperio’s investigators have recommended that the council makes an effort to recover R27 million from BBP Security Services and Wesizwe Risk Solutions.

The change of BBP’s name and banking details into Wesizwe were effected despite the warning from lawyers. “The contract expired on March 24 2006 and there is no documentary evidence to substantiate the approval pertaining to the extension,” said the report, adding that by the end of March 2007 Gijima had been paid R3 million.

The report shows that officials manipulated scores to prevent Mashinini Enterprises Trust from being appointed.The company’s appointment letter included the management of the Palm Springs and Vaaloewer landfill sites, which were not part of the three-year contract. Although aware of the ongoing investigations at Emfuleni, he declined to comment further. He said he had not seen the report.

 

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