It could prove almost impossible for the city to recover some of the R12-million paid for an N2 Gateway housing contract a "previous administration" originally awarded for R5-million.
Cyberia Technologies was hired in 2005 as project manager when the city was still in charge of awarding contracts to get the now beleaguered housing project off the ground.
The contract was extended three times without the process being put out for re-tender.
The council's housing committee called for a forensic audit on the termination and payment of Cyberia Technologies in April 2006.
On Wednesday the city's mayoral committee endorsed a recommendation from its forensic department that the Office of the Auditor-General was best placed to conduct an investigation into the matter because it had greater jurisdictional powers.
But the city's chairman of the housing portfolio committee, Neil Ross, said he wanted the council's Special Committee on Public Accounts (Scopa) to investigate the matter and to ensure that procedures were now in place that would avoid a repeat situation.
Ross said Cyberia Technologies should never have been awarded the tender because it was not among the three top bids and, being an IT company, had no housing project management experience.
Ross said it was important that the city gleaned more information about exactly how the contract had been awarded and then repeatedly extended.
The role of the former city manager also had to be investigated.
The poor manner in which the contracts had been drafted between the city and Cyberia Technologies made the recovery of any funds virtually impossible, said Ross.
"This has been a very expensive, and a very sloppy issue."
"It is something this administration inherited but we can't allow it to happen again," said Ross.
The city has since been pulled off the N2 Gateway project.
Mayor Helen Zille placed the blame on politicians and provincial leaders whom she said used councillors to drive projects through.
Zille said systems needed to be tightened up to protect officials from political abuse. - Cape Argus
Cyberia Technologies was hired in 2005 as project manager when the city was still in charge of awarding contracts to get the now beleaguered housing project off the ground.
The contract was extended three times without the process being put out for re-tender.
| 'This has been a very expensive, and a very sloppy issue' |
On Wednesday the city's mayoral committee endorsed a recommendation from its forensic department that the Office of the Auditor-General was best placed to conduct an investigation into the matter because it had greater jurisdictional powers.
But the city's chairman of the housing portfolio committee, Neil Ross, said he wanted the council's Special Committee on Public Accounts (Scopa) to investigate the matter and to ensure that procedures were now in place that would avoid a repeat situation.
Ross said Cyberia Technologies should never have been awarded the tender because it was not among the three top bids and, being an IT company, had no housing project management experience.
Ross said it was important that the city gleaned more information about exactly how the contract had been awarded and then repeatedly extended.
| 'The projects are being driven by political pressure' |
The poor manner in which the contracts had been drafted between the city and Cyberia Technologies made the recovery of any funds virtually impossible, said Ross.
"This has been a very expensive, and a very sloppy issue."
"It is something this administration inherited but we can't allow it to happen again," said Ross.
The city has since been pulled off the N2 Gateway project.
Mayor Helen Zille placed the blame on politicians and provincial leaders whom she said used councillors to drive projects through.
Mayor Helen Zille placed the blame on politicians and provincial leaders whom she said used councillors to drive projects through.
"The politicians disappear and officials are left to carry the can."
"It's happening in all local authorities where another political party thinks it's above the law."
"The officials are on the back foot and the projects are being driven by political pressure," she said.
Zille said systems needed to be tightened up to protect officials from political abuse. - Cape Argus
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