A row is brewing over the award of a five-year R26-million contract to manage Durban’s city centre street parking — and over the contents of a report by the eThekwini Metro ombudsman that allegedly confirmed irregularities in the adjudication of the tender.
In March last year the council called for tenders to replace the city’s costly and inefficient parking-meter system.
The initial contract was just for the city centre, but indications were that, if successful, the system would be rolled out throughout the Metro, thereby significantly increasing its value.
Out of eight bidders, Emtateni Logistics was scored highest and recommended for acceptance.
Two failed bidders, Universal Parking Administration (UPA) and Kerbside Parking, lodged a complaint with the council and with the municipality’s in-house ombudsman, citing irregularities and inconsistencies in the adjudication process.
Among other things, UPA noted that its stated revenue projections were adjusted down by nearly R8-million and that the requirement that car guards be integrated into the new system was effectively ignored by the winning bidder, Emtateni.
In response, eThekwini city manager Michael Sutcliffe last month presented a report to the Metro executive committee (Exco) that purported to give a ”synopsis” of the findings of the investigation by the ombudsman.
Over the objections of the Democratic Alliance, who requested that Exco be given the actual ombudsman’s report, the matter was referred back to the adjudication panel for ”confirmation of the award”, which duly occurred.
UPA has lodged an appeal and threatened court action should it not be satisfied with the outcome, but it has yet to secure a key piece of evidence to support its case — the ombudsman’s report.
Up to now that report has still not been provided to Exco, and Sutcliffe has now told the complainant that it must apply for access to this and other documentation via the cumbersome Promotion of Access to Information Act.
However, the Mail & Guardian has been shown a draft report that bears little resemblance to Sutcliffe’s ”synopsis”.
The draft report notes among a range of problems:
the selection panel deviated from the weighting formula set out in the invitation to trade and no satisfactory explanation was given for this;
the objection to the scoring for ”performance projections” was regarded as valid because of unexplained inconsistencies: Emtatenti received three points for R26-million, Kerbside 2,5 points for R4,3-million, and UPA 0,5 points for R25-million;
the basis of the scoring was not documented but was agreed verbally after consultation with a line manager;
the official involved cited pressure from his department head and a deputy city manager as explanation for a rushed submission of the recommendation.
The report, marked ”for onward transmission to the City Manager”, concluded that ”it is evident that due professional care was not exercised by the officials responsible for evaluating the proposal” and recommended the council call for new tenders.
In his synopsis, Sutcliffe gave no hint of these findings but merely stated: ”It is submitted that although there were errors on the document that was submitted to Exco, the explanation provided by the Service Unit as well as the manner and form of adjudication clearly indicate there was no intention to mislead Exco or Council.”
He recommends that the selection committee ”revisit this issue on the basis that the contract be accepted in principle, subject to a legally binding contract providing fully for the guarantees”.
The winning bidder, Emtateni Logistics, appears to have heavyweight political connections, including at one point eThekwini mayor Obed Mlaba.
Mlaba, according to company records, was appointed a director in June 2001, but resigned at an undisclosed date.
The M&G was unsuccessful in getting clarification on this point from Mlaba by the time of going to press.
Attempts by the M&G to gain access to the share register were rebuffed by the CEO of Emtateni, UP ”Rajen” Pillay.
Another person linked to Emtateni is Prince Sifiso Zulu. A former national programme manager for the Department of Public Works, he also describes himself as having been ”involved in projects” for the European Aeronautical Defence and Space Company.
Although he is also reflected as having resigned from Emtateni Logistics, he attended a briefing for parking tender bidders on behalf of Emtateni in March 2003 and remains on the board of a related company, Emtateni Freight Plus.
Prince Zulu could not be reached to clarify this point.