“The security guards were required to be qualified to level C and possess legitimate [Private Security Industry Regulatory Authority] certificates. The company was also required to provide labour and transportation, with 10 vehicles registered in the service provider’s name at the time of bidding,” said Ntabazalila.
McCarthy's bid was R26.8m for three years and her company started working in January 2019. Trouble started after a whistle-blower called the presidential hotline and reported alleged irregularities in the awarding of the tender. This prompted a probe by the Special Investigating Unit.
“Scrutiny of the company found the accused had made misrepresentations, stating her company had a workforce of between 400 and 600 employees and a registered fleet of more than 10 vehicles,” said Ntabazalila.
“Between February and March 2018, the company’s bank statements reflected payments to 27 employees for February 2018, 90 employees for March 2018 and 90 employees for April 2018, with a total of R357,273. This meant the company had an average of 69 employees between March and April 2018.”
Security company boss in court for R26.8m tender fraud in Western Cape
A security company owner has been arrested for allegedly duping a Western Cape municipality into awarding her a lucrative security contract under false pretences.
Wanda McCarthy allegedly exaggerated her company's assets and number of employees while submitting a winning bid to the Saldanha Bay municipality for a R26.8m tender to provide security guards in six towns.
McCarthy, director of Crime Force, appeared in the Vredenburg magistrate's court on Tuesday.
National Prosecuting Authority spokesperson Eric Ntabazalila said the municipality issued the tender in 2018. A budget of R30.9m was approved for three years, from July 2018 to June 2021, for the successful bidder to provide services in Hopefield, St Helena Bay, Paternoster, Vredenburg, Saldanha Bay and Langebaan.
The successful bidder was required to provide 77 security guards to the towns on day and night shifts.
“The security guards were required to be qualified to level C and possess legitimate [Private Security Industry Regulatory Authority] certificates. The company was also required to provide labour and transportation, with 10 vehicles registered in the service provider’s name at the time of bidding,” said Ntabazalila.
McCarthy's bid was R26.8m for three years and her company started working in January 2019. Trouble started after a whistle-blower called the presidential hotline and reported alleged irregularities in the awarding of the tender. This prompted a probe by the Special Investigating Unit.
“Scrutiny of the company found the accused had made misrepresentations, stating her company had a workforce of between 400 and 600 employees and a registered fleet of more than 10 vehicles,” said Ntabazalila.
“Between February and March 2018, the company’s bank statements reflected payments to 27 employees for February 2018, 90 employees for March 2018 and 90 employees for April 2018, with a total of R357,273. This meant the company had an average of 69 employees between March and April 2018.”
Ntabazalila said investigations revealed two vehicles, which McCarthy allegedly claimed were owned by her company, belonged to private individuals not employed by Crime Force.
“On March 30 2020, the municipality terminated the tender after having paid R13.8m for services rendered,” he said.
“The state alleges the accused’s actions were unlawful and intentional to the extent that the unsuccessful service providers were prejudiced and incurred substantial [costs] to pursue an appeal. As a result, other prospective tenderers and the municipality suffered actual loss and prejudiced in the amount of R13.8m.”
McCarthy was released on R20,000 bail and ordered not to contact Saldanha Bay local municipality officials. She will be back in court on August 21.
Ntabazalila said “more charges are likely to be added at the next appearance”.
TimesLIVE
Support independent journalism by subscribing to TimesLIVE Premium. Just R20 for the first month.
READ MORE: