The troubled Amathole District Municipality’s plans to lease more than 80 vehicles for the next three years, including two executive cars for mayor Anele Ntsangani, at a cost of R47m, have been thrown into disarray.
The planned delivery of 20 of 81 vehicles came to a screeching halt on Wednesday, when the municipality instructed the contracted company, at the eleventh hour, to halt delivery, as the lucrative tender, awarded in January, was being challenged.
A losing bidder lodged a formal complaint, challenging the validity of the contract awarded to a Gauteng-based fleet management company.
The company cannot be named as it did not respond to questions on Monday.
The company had indicated it would deliver 20 vehicles on Wednesday last week, but a confidential letter from ADM administration boss Dr Bhekisisa Mthembu, seen by the Dispatch, put the brakes on the handover.
Mthembu said in the letter, dated April 8, that they would now have to wait for an internal investigation to unfold, before any vehicles could be delivered.
The basis of the complaint is the validity period of the tender, which lapsed in December 2024, while the district awarded the contract in January.
ADM insiders, who did not want to be named, also alleged that the awarded company was not deserving as it was not part of the recommended bidders.
“The award was made against the bid evaluation committee (BEC) recommendation, which had recommended two other bidders.
“[The company] was not recommended, however, it ended up getting the tender,” one insider said.
“Our supply chain failed to advise authorities that the tender validity period of 90 days had expired in December 2024, however, they proceeded in January 28 to award the contract, without extending the tender validity period, which is against the law.”
Another said the scope of the “irregular contract did not include the two executive cars, which are Ford Everest SUVs, that were added after the contract and appointment letter were signed, which is another irregularity”.
ADM spokesperson Sisa Msiwa on Monday confirmed the halting of delivery and the internal probe.
“These vehicles were intended to strengthen service delivery by ensuring operational reliability across key departments, including water and sanitation, customer care and infrastructure services.
“In the spirit of transparency and fairness, the municipality is currently accommodating concerns raised by other bidders as part of its internal due diligence process.
“As a result, the delivery of some vehicles initially expected [last week] has been temporarily placed on hold.
“No final decision has been concluded, pending the outcome of this internal process,” Msiwa said.
“ADM is committed to ensuring that all procurement activities remain above board, and that all bidders are treated fairly in line with applicable regulations.”
The company, after receiving Mthembu’s letter, insisted that it was properly contracted and was to deliver as scheduled.
Mthembu said in the letter the municipality was “in receipt of a complaint against the award from an unsuccessful bidder”.
“Among the issues raised in the complaint [is] the allegation that the tender had already lapsed at the time it was awarded,” he said.
Mthembu said the allegations “are very serious”.
He then asked for time to investigate the matter.
To avoid irregular and fruitless expenditure, Mthembu urged the company to “stay the implementation and/or enforcement” of the contract, pending the outcome of the internal probe.
However, the company wrote back to him, insisting that they would deliver as planned on April 9.
The company said in the letter that the contract was awarded “pursuant to a competitive bidding process”.
It claimed that losing bidders had 14 days to lodge objections, which had lapsed.
The company said due to the service level agreement, it had proceeded with the procurement of the required vehicles and “incurred substantial costs in both preparations and logistical arrangement for delivery”.
It insisted it would go ahead with the initial 20 vehicles as planned.
Mthembu, however, wrote back on April 9, saying that ADM would not accept delivery.
He said it was “unfortunate” that the company was insisting on delivery.
“The contract that [the company] is insisting on enforcing is potentially invalid as preliminary investigations indicate, among other things, that the company had been disqualified due to noncompliance with the tender specifications,” he wrote.
“It remains a mystery and a subject of investigation, why and how your company’s bid was reinstated and ended up being the successful bidder.”
He also confirmed that the “validity period for the tender had long lapsed” when it was awarded.
Mthembu said if the company insisted on delivery, “the municipality will have no option but to approach a court for competent relief”.
The investigation would take 14 days, he said.
Daily Dispatch
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