The City of Tshwane has written to the National Treasury again in a bid to push for companies linked to controversial businessman Edwin Sodi, which are accused of bungling the refurbishment of the Rooiwal wastewater treatment plant, to be blacklisted from doing business with government.
This comes after the Treasury said the City’s request on February 2 this year to have the companies barred from participating in government tenders, fell short of “complying with certain provisions of the law”.
City spokesperson, Selby Bokaba, said the National Treasury held a view that Tshwane’s request didn’t comply with certain provisions of the law, and asked to be furnished with certain documents.
Bokaba said the City was resolute in its endeavour to impose restrictions on the companies in question - CMS, NJR & Blackhead Joint Venture (JV) - from doing business with the public sector.
“The City’s move was motivated by the joint venture’s failure to execute the works in relation to a tender awarded, which was subsequently cancelled, for the upgrade and refurbishment of the Rooiwal wastewater treatment plant,” he said.
The municipality has resolved to consider blacklisting the JV jointly and severally as well as its related directors and shareholders, Bokaba said: “This effectively means that the joint venture between CMS, NJR & Blackhead and partners in their individual capacity and directors of these companies would be listed on the National Treasury list of restricted suppliers.”
If the City’s request is approved, he said, it will result in company directors being restricted from doing or obtaining any business with the State for a period of 10 years.
“Furthermore, the City intends to invoke clause 23.4 of the General Conditions of Contract and/or section 41(9) of the City of Tshwane’s Supply Chain Management policy restricting the joint venture, its partners, directors and associates from obtaining business within the public sector,” he said.
He said the City had written to the implicated companies on May 30, informing them of its intention to blacklist them. The companies were given 14 days within which to furnish reasons why the intended action shouldn’t be carried out.
Bokaba said: “These companies have not yet responded to the City’s letter and the deadline to do so has expired, which left Tshwane with no choice but to proceed to approach the National Treasury to make a determination on the City’s request.”
He said subsequent to writing to the joint venture, the City held a joint meeting with National Treasury officials on July 5 to discuss this and other related matters.
Municipal manager Johann Mettler said: “We will be writing to the National Treasury today to inform them that the joint venture has not responded to us yet and that the deadline has passed, and for them to assess our request and make a determination.”
Bokaba said work was underway to complete the refurbishment and upgrades at the Rooiwal plant. In addition, the City and the National Department of Water and Sanitation are racing against time to complete the Magalies Water Package Plant.
The plant will provide potable water to the residents of Hammanskraal and surrounding areas in phases, starting from September. “The Magalies Water Package Plant will start to provide 10 million megalitres of water during the first phase in September and progress to 50 million megalitres after its completion in early 2025,” Bokaba said.
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