Tshwane moves to blacklist companies that failed to complete Rooiwal wastewater treatment upgrade

16 June 2023 - 10:22
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President Cyril Ramaphosa tours the Rooiwal wastewater treatment plant on June 8 2023.
President Cyril Ramaphosa tours the Rooiwal wastewater treatment plant on June 8 2023.
Image: Alaister Russell

The City of Tshwane has taken steps to blacklist companies and tenderpreneurs awarded the phase 1 contract to upgrade the Rooiwal wastewater treatment works.

Tshwane mayor Cilliers Brink said joint venture between CMS, NJR & Blackhead was given a tender to carry out the upgrade and refurbish the works at a cost of R291m.

Brink said the joint venture failed to honour the contract and the upgrade was subjected to long delays which resulted in the city terminating the contract in August 2022.

“After my calls to the city manager, the city has now resolved to blacklist the joint venture, together with its shareholders and directors, including the state capture accused, Edwin Sodi,” he said.

Brink said the city intends to invoke the provisions of the Preferential Procurement Regulations as stated in a circular by the National Treasury.

“Effectively, this means that the joint venture CMS, NJR & Blackhead, as well as its shareholders and directors, will be listed by the National Treasury as restricted suppliers. This will result in these individuals being restricted from doing or obtaining any business with the state for a period of five years.”

Brink said the city manager's office wrote to the affected parties, giving  them 14 days to respond to the city's intention to blacklist them.

The joint venture had only completed 60% of the upgrades, he said.

Brink said a forensic investigation found the tender had been awarded irregularly.

“In this regard, disciplinary steps are under way against several city officials who are implicated. Our multiparty coalition government is determined to fight corruption and to keep our original promise to run a clean, effective and corruption-free administration,” .

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