The City of Cape Town does not have enough information to take "disciplinary or recovery measures" against any of the officials "potentially liable" for the controversial R12-million contract awarded to Cyberia Technologies by the former ANC-led city administration for the first phase of the N2 Gateway project.
And the city's forensic services has been advised by senior legal counsel to "close its file" on the matter, pending further action by the Auditor-General.
But DA councillor Neil Ross, who heads the city's housing portfolio committee, rejected this recommendation at Wednesday's mayoral committee meeting.
"I don't believe this matter should be left with the Auditor-General. A lot of money was misused.
"We need to look at procedures so that this does not happen again.
"Sloppy contracts were used to appoint Cyberia."
Soon after the DA came into power in 2006, the city called for an urgent forensic audit of the contract, initially awarded to a Johannesburg-based company for R5-million.
Despite being one of the more expensive bidders, Cyberia was awarded the contract to act as project manager for the N2 Gateway Project.
The R5-million contract was extended by a further R3-million by former chief financial officer Rusj Lehutso in 2005.
Former city manager Wallace Mgoqi then approved a payment of a further R4-million into the project after saying that the "normal requirements of calling for tenders be dispensed with" so that Cyberia's contract could be extended.
Ross said on Wednesday that Cyberia had failed to deliver and was eventually fired, after legal opinion.
The city, however, still paid R12-million to the company for work that was never done.
In a report submitted to the mayoral committee, advocate Ashley Binns-Ward, SC, said that as the N2 Gateway was a project of the national and provincial housing departments with the city as the implementing agent, the Cyberia contract should be subject to a special audit.
He said the Auditor-General, with jurisdictional powers spanning all three tiers of government, was "best placed to conduct this investigation".
Although mayoral committee chairperson Ian Neilson wanted the item to be discussed after the meeting, Ross insisted the committee note the pitfalls of irregular procedures and "sloppy" contracts.
Mayor Helen Zille said the "big loophole" in this and other irregular contracts was national and provincial political interference in local government procedures.
"What worries me is how politicians drive things (for their own interests) and the officials are left to carry the can.
"The core problem is that the politicians don't give a damn about procedures."
She said this was happening in other municipalities "ruled by another political party".
Zille said systems (such as procurement processes) needed to be tightened to protect officials from political abuse. - Cape Times
And the city's forensic services has been advised by senior legal counsel to "close its file" on the matter, pending further action by the Auditor-General.
But DA councillor Neil Ross, who heads the city's housing portfolio committee, rejected this recommendation at Wednesday's mayoral committee meeting.
"I don't believe this matter should be left with the Auditor-General. A lot of money was misused.
"We need to look at procedures so that this does not happen again.
"Sloppy contracts were used to appoint Cyberia."
Soon after the DA came into power in 2006, the city called for an urgent forensic audit of the contract, initially awarded to a Johannesburg-based company for R5-million.
Despite being one of the more expensive bidders, Cyberia was awarded the contract to act as project manager for the N2 Gateway Project.
The R5-million contract was extended by a further R3-million by former chief financial officer Rusj Lehutso in 2005.
Former city manager Wallace Mgoqi then approved a payment of a further R4-million into the project after saying that the "normal requirements of calling for tenders be dispensed with" so that Cyberia's contract could be extended.
Ross said on Wednesday that Cyberia had failed to deliver and was eventually fired, after legal opinion.
The city, however, still paid R12-million to the company for work that was never done.
In a report submitted to the mayoral committee, advocate Ashley Binns-Ward, SC, said that as the N2 Gateway was a project of the national and provincial housing departments with the city as the implementing agent, the Cyberia contract should be subject to a special audit.
He said the Auditor-General, with jurisdictional powers spanning all three tiers of government, was "best placed to conduct this investigation".
Although mayoral committee chairperson Ian Neilson wanted the item to be discussed after the meeting, Ross insisted the committee note the pitfalls of irregular procedures and "sloppy" contracts.
Mayor Helen Zille said the "big loophole" in this and other irregular contracts was national and provincial political interference in local government procedures.
"What worries me is how politicians drive things (for their own interests) and the officials are left to carry the can.
"The core problem is that the politicians don't give a damn about procedures."
She said this was happening in other municipalities "ruled by another political party".
Zille said systems (such as procurement processes) needed to be tightened to protect officials from political abuse. - Cape Times
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