Western Cape extends controversial contract during tender process

A contract between the Western Cape government and marketing agency TBWA/Hunt Lascaris that was under investigation for irregularities has been extended until a new tender process is complete, Premier Helen Zille's office said on Tuesday.

"The contract has been extended, and that is perfectly allowed in terms of the contract," Zille's spokesman Zak Mbhele said.

"The premier had nothing to do with extending the contract. A process had been started to put a [new] tender together and it had taken longer than expected, so the contract was extended."

The New Age reported on Tuesday that the contract was supposed to end on December 31.

Documents seen by the newspaper reportedly stated that TBWA/Hunt Lascaris would be paid R6 million for the first six months of 2013, and a further R1m a month for the remaining six months.

The documents also reportedly revealed that Western Cape provincial government director general Brent Gerber said in letter at the end of May that there was an decision not to extend the contract.

"I had a discussion with Premier Zille on May 28, 2012, on this same topic," Gerber reportedly wrote in the letter.

"Premier Zille agrees with the decision not to extend the current TBWA contract upon the expiry and affirms that the department should embark upon a fresh procurement process for branding and communication services for the Western Cape government."

The previous communications tender was awarded to TBWA/Hunt Lascaris in 2010.

In August 2011, the African National Congress asked Public Protector Thuli Madonsela to investigate whether the contract was irregular, following a report by the Sunday Times that correct supply chain management procedures had not been followed.

In her final report on the tender, Madonsela made four findings of maladministration and none of unlawfulness. She did not recommend that the contract be scrapped.