Photo: Nick Youngson, Alpha Stock Images

Emfuleni municipality has mishandled tenders amounting to R300m

A forensic report proves that some payments were made for expired contracts.


Photo: Nick Youngson, Alpha Stock Images

The Emfuleni local municipality in Gauteng has paid R16,2 million for an expired cellphone service contract, to a company owned by a billionaire, Robert Gumede. The municipality is also responsible for settling the R1,2 million security bill for Simon Mafokeng, a former mayor.

A fraudulent transaction has cost the council R17,6 million

According to the City Press, five forensic reports implicate politicians, tenderpreneurs, officials and private sector companies of fraud and corruption, through the mishandled tenders which total to R300 million.

Furthermore, the reports prove how officials fraudulently extended security, fleet lease and landfill sites management tenders. The forensic report shows Wesizwe Risk Solutions received R17,6 million as a result of a fraudulent transaction between the council and another security group went south.

The forensic report proves mishandled funds

  • A sum of R27 million was paid to Hallmark Motor Group, for two fleet leases and maintenance contracts that had already expired.
  • A company enlisted to manage a landfill site for R14 million during a three-year term, ended up gaining R24 million above initial amount, as more projects were sent directly to the company and not through a tender process.
  • The council further accumulated more than R1,2 million in irregular expenditure, for pledging to pay for security at the guesthouse of its former mayor.

Emfuleni: A security company receives R57 million more than the council budgeted for

The investigators of this report have suggested that the council, finds a way to restore R27 million from Wesizwe Risk Solutions and BBP security services fee paid.

In July 2013, council officials were informed that BBP had changed its name to Wesizwe Risk Solutions, and changed banking details too. The council’s legal office however warned officials that changes made to the banking details and the company name were a ploy to transfer the proposed tender to Wesizwe Risk Solutions.

“It appears as if Mafoko inflated invoices”

The report on Mafoko Security also shows that the council signed a three-year service deal in 2015, with a security company costing R165 million. Furthermore, at the end of January in 2018, the contract expired but the council had paid Mafoko R57 million more than budgeted for.

“The expenditure incurred in terms of tee contract was irregular. The municipality’s contract with Mafoko was further extended until the end of July last year, without following due process. As per invoice analysis, it appears as if Mafoko inflated invoices”

Forensic Report