admin“The awarding of (the) tender by the department to On-Point was unlawful, improper and constituted maladministration,” she said in Pretoria.
She found On-Point and former ANC Youth League leader Julius Malema benefited improperly from the contract.
Malema’s business partner Lesiba Gwangwa is chief executive of On-Point.
Madonsela presented her findings in a report on corrupt practices in Limpopo entitled: “On the Point of Tenders”.
Madonsela found the department did not follow proper guidelines in awarding the tender. “It is mind-boggling that the stark differences between the bid document and the tax clearance certificate did not disqualify On-Point or present a red flag regarding the possibility of tender fraud,” she said.
She received three complaints in July 2011 and decided to investigate the allegations that the department of roads and transport awarded the On-Point tender corruptly.
Also under scrutiny were claims that Malema used his political position to influence the awarding of tenders by the department and the Limpopo government in general.
She also investigated whether Malema’s Ratanang Family Trust and/or Malema benefited improperly from the tender awarded to On-Point.
The total amount paid by the department to On-Point in terms of the contract at the end of June 2012 was R43 868 900.
Madonsela said she found the awarding of the tender was unlawful after perusing documents relating to its procurement, interviewing officials, and consulting the National Treasury. Relevant laws and records were also analysed.
The bid presented by On-Point in respect of the project management unit (PMU) tender deliberately and fraudulently misrepresented the profile, composition, experience and therefore the functionality of the company.
It was claimed that On-Point was an established and experienced operation with management teams and professional staff that complied with the requirements of the request for proposal.
But at the time of the bid, the company had existed for only a month, and had no employees, or several of the purported key management and staff.
“The conduct of the head of the Limpopo roads and transport department, Ntau Letebele, in respect of the awarding of the bid to On-Point, was improper and constituted maladmini-stration,” Madonsela said. — Sapa.
Online Reporter