Directors of firm linked to Tshwane municipality deal face cop probe

15 October 2019 - 09:27 By timeslive
In 2015, the previous administration of Tshwane signed a deal with Tahal SA for three years, a contract that Outa says was inflated.
In 2015, the previous administration of Tshwane signed a deal with Tahal SA for three years, a contract that Outa says was inflated.
Image: City of Tshwane

The Organisation Undoing Tax Abuse (Outa) has lodged a case with police against the directors of a company linked to a R35m contract with the City of Tshwane "for a job that appears to be valued at not more than R1.5m". 

In 2015, the previous administration of Tshwane signed a contract with Tahal SA for three years.

Tahal SA was supposed to do "the identification and packaging of catalytic interventions and projects required to fast-track the development of East Capital to realise the required economic growth".

The initial tender was allegedly R8m but the project cost jumped to R30.7m, said Outa. The VAT would add another R4.293m. The entire project was allegedly sub-contracted to another company, which was allegedly paid R1.5m.

In May 2017 the city suspended the contract following a tip from a whistleblower to Outa.

But there was no prosecution.

Outa has now laid a criminal complaint against the directors of the company. The case was registered by the police at the Brooklyn police station in Pretoria.

"Though the city suspended the contract, they failed to act against the culprits," said Michael Holenstein, Outa's inland regional manager for local government.

"SA is in the state that it is because of the failure to hold offenders criminally liable for their actions," Holenstein said.


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