City of Johannesburg Press Statement by
The Executive Mayor, Cllr Herman Mashaba
City investigates Pikitup’s R36-million waste crusher tender
28 November 2017
Today, I instructed the City’s Group Forensic and Investigation Services (GFIS) team to investigate Pikitup’s acquisition of 6 unused waste crushers which were bought in 2014, at a cost of R36-million.
One of the bidders that participated in the tender process, was able to supply the specified crushers for approximately R10-million less than the ultimate award of approximately R36-million.
The City spends R9 000 a day to hire crushers from the bidder who lost the tender. The lower specification crushers were unable to effectively crush waste and therefore Pikitup is now required to hire additional equipment to crush waste.
This matter was brought to my attention by a whistle-blower who provided details on how money, meant for service delivery in the City, was misused.
I want to eliminate corrupt elements throughout the City including investigating illicit deals and contracts that were secured by the previous the administration.
It is alleged that in 2014 Pikitup issued a tender for these crushers. The tender specification was carefully drafted to stipulate the exact specifications for the crushers.
The tender was ultimately awarded to a service provider who provided crushers of a lower specification than the original specifications required by Pikitup.
Four of the unused crushers are standing at Robinson Landfill Site in Stafford, south of Johannesburg.
I was also informed that during 2011, Pikitup issued another tender for the construction and operation of weigh bridges at the four Pikitup landfill sites at a cost of about R23-million.
The tender was for the construction of the weighbridges (hardware component) and for the implementation of software to operate the weigh bridges (software component).
It is alleged that the weighbridges were constructed (hardware component), but the implementation of the software to operate the weighbridges (software component) has not yet been supplied. Despite this, the service provider received advance payment for the software component but it hasn’t been supplied.
I have also asked the GFIS team to also look at other tenders that were awarded by the entity. Corruption doesn’t just steal from the City. It robs residents of much needed services and resources.
This is why corruption has no place in this administration and we will work tirelessly to eradicate it.
We will ensure that the residents of Johannesburg receive the quality services they deserve.
On the 7th of November, I took residents into my confidence by illustrating the massive infrastructure backlog and crisis we face in the City. R170 billion is needed to begin addressing this challenge. In the face of this crisis, it unthinkable that some would waste our resources in this manner.
I would like to commend the GFIS team for vigorously investigating any allegations of fraud and corruption brought before them by the members of the public and the Hawks for the continued support.
I would also like to encourage people to report any fraud and corruption activities through our 24hour tipoff hotline 0800 002 587 or visit the GFIS offices situated at 48 Ameshoff Street in Braamfontein.
Cllr Herman Mashaba
Executive Mayor
City of Joburg
For further information contact:
Lucky Sindane
Director: Strategic Stakeholder Management
Group Forensic and Investigation Services
Cell: 065 865 0696
Email: [email protected]
Or
Luyanda Mfeka
Acting Director of Communications
Office of the Executive Mayor
Cell: 076 171 5978
Email: [email protected]
Author: Derrick Markotter
RCCI Webmaster Derrick runs a boutique web marketing agency, IdealMedia Marketing.