The City of Cape Town spent about R350-million without going through open tender processes in the three months leading up to the World Cup.
But the deviations from the open process were all legal and above board, and in line with supply chain management provisions, the finance portfolio committee has heard.
The committee yesterday received an extensive list of projects and procurements concluded during April, May and June, detailing amounts spent and the reasons for the deviations from the open tender process.
Many of the deviations were motivated by the looming deadline of the World Cup, and included procurements for the Integrated Rapid Transit system.
Exceptional circumstances, "impractical and impossible", and "sole provider" were some of the other reasons given.
But while the ANC expressed its concern over the millions spent without going to tender, chief financial officer Mike Richardson said deviations represented only about two percent of the orders placed.
"It may seem a lot," he said, but added that the amount should be viewed within the context of the "many other (tenders)" that went through the transparent process.
However Richardson said that city manager Achmat Ebrahim had made it clear that there should be no deviations in the new financial year, which started on July 1.
Arno Vorster, strategic adviser in the office of the city manager, said there had been a "firm instruction" in this regard.
However, the city spent billions on goods and services every year, and there was a legal provision that deviations could be accepted - "with strict rules", said Vorster.
These included when nobody else could provide the service or product, for instance when buying software, or in emergencies.
DA councillor Johannes van der Merwe expressed concern over more than R2-million spent on rehabilitating the Athlone Stadium pitch, which had to be "completely rebuilt" to Fifa specifications, yet only saw two low-key practice sessions by international teams.
The ANC's Norma Gabriel said that there was "definitely a problem with deviations", and rejected the assertion that some of them were necessary to keep to World Cup deadlines.
"Don't use 2010 as a scapegoat. We had five years of planning, and deviations have nothing to do with World Cup soccer," she said.
She said her party's calculations showed that at least R350m was spent without going to tender - a figure that was not challenged. Gabriel later said that the amount could be even higher, as in some instances the amounts were not reflected alongside the relevant deviations.
Projects affected by tender deviations between April and June, included the procurement of grow lights and a specialist pitch analyser for the Cape Town stadium, the resurfacing of Settlers Way, the supply and construction of temporary housing units for flood victims, the rehabilitation of bridge bearings, work on the 2010 transport plan, the construction and management of the World Cup volunteer centre, and the imminent demolition of the Athlone power station cooling towers.
- Cape Argus
But the deviations from the open process were all legal and above board, and in line with supply chain management provisions, the finance portfolio committee has heard.
The committee yesterday received an extensive list of projects and procurements concluded during April, May and June, detailing amounts spent and the reasons for the deviations from the open tender process.
Many of the deviations were motivated by the looming deadline of the World Cup, and included procurements for the Integrated Rapid Transit system.
Exceptional circumstances, "impractical and impossible", and "sole provider" were some of the other reasons given.
But while the ANC expressed its concern over the millions spent without going to tender, chief financial officer Mike Richardson said deviations represented only about two percent of the orders placed.
"It may seem a lot," he said, but added that the amount should be viewed within the context of the "many other (tenders)" that went through the transparent process.
However Richardson said that city manager Achmat Ebrahim had made it clear that there should be no deviations in the new financial year, which started on July 1.
Arno Vorster, strategic adviser in the office of the city manager, said there had been a "firm instruction" in this regard.
However, the city spent billions on goods and services every year, and there was a legal provision that deviations could be accepted - "with strict rules", said Vorster.
These included when nobody else could provide the service or product, for instance when buying software, or in emergencies.
DA councillor Johannes van der Merwe expressed concern over more than R2-million spent on rehabilitating the Athlone Stadium pitch, which had to be "completely rebuilt" to Fifa specifications, yet only saw two low-key practice sessions by international teams.
The ANC's Norma Gabriel said that there was "definitely a problem with deviations", and rejected the assertion that some of them were necessary to keep to World Cup deadlines.
"Don't use 2010 as a scapegoat. We had five years of planning, and deviations have nothing to do with World Cup soccer," she said.
She said her party's calculations showed that at least R350m was spent without going to tender - a figure that was not challenged. Gabriel later said that the amount could be even higher, as in some instances the amounts were not reflected alongside the relevant deviations.
Projects affected by tender deviations between April and June, included the procurement of grow lights and a specialist pitch analyser for the Cape Town stadium, the resurfacing of Settlers Way, the supply and construction of temporary housing units for flood victims, the rehabilitation of bridge bearings, work on the 2010 transport plan, the construction and management of the World Cup volunteer centre, and the imminent demolition of the Athlone power station cooling towers.
- Cape Argus
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