The eThekwini Municipality has taken a resolute stand against fraud, corruption, and tender collusion, with a case in point being the 32 service providers that were slapped with criminal charges recently.
To bolster service delivery and uphold ethical procurement standards, Municipal Manager Musa Mbhele announced the addition of eight companies to the municipality's previous tally of 24 blacklisted companies from the start of this year.
Municipality spokesperson Gugu Sisilana stressed that the city was committed to transparency and accountability.
“Other than reporting blacklisted companies to the National Treasury, where it is deemed appropriate, criminal charges have been laid.
“Should there be instances where misconduct or wrongdoing is found, municipal employees are then put through the disciplinary processes, in line with the City’s Disciplinary Code,” Sisilana stated.
Among the affected was a business owner whose company previously provided printing services to the municipality.
She alleged that her company was unfairly targeted due to acts of misconduct by a municipal official in 2018.
Unable to disclose her identity because of the legal proceedings the matter has already been subjected to, she described the blacklisting as unjust and stemming from an official's covert misconduct.
“It led to my company being blacklisted,” she said, recounting her arduous journey since 2018, having endured threats and a prolonged battle to clear her company's name.
She discovered on September 19 that her company had been officially blacklisted.
“I’ve been trying to convince the municipality that my company committed no (misdemeanour),” she said, wary about the possible ramifications it would carry for her reputation in business and future prospects.
Despite her claims, Sisilana confirmed that substantial evidence supported the decision to blacklist the company and others.
“We do not want to personalise the matter, but we can confirm that the company in question was blacklisted after an investigation by the City Integrity and Investigations Unit. It concluded that the entity was involved in wrongdoing and the blacklisting was warranted.
“The company did not appeal the Blacklisting Committee’s decision and the City is also in possession of evidence where the company admitted to wrongdoing,” Sisilana added.
Mbhele underscored that the blacklisted companies were implicated in various malpractices, including fraud, corruption, poor performance, and collusive tendering. Some entities were penalised because their directors were also government employees.
“The Municipality follows a very rigorous process to blacklist a service provider as per policy and the decision is not taken lightly,” he remarked.
The blacklisting procedure begins with investigations conducted by the relevant line department, followed by findings from the City Integrity and Investigations Unit or the Auditor-General of South Africa. Affected entities have the opportunity to respond to allegations before a final decision is made.
According to the City, this comprehensive process was designed to ensure that only ethically compliant companies engage in municipal contracts. The list of blacklisted companies will also be forwarded to the National Treasury for barring from securing contracts with other governmental bodies.
“More importantly, they must ensure that their performance meets the expected standards.
“Sub-standard work will not be tolerated. A zero-tolerance approach has been adopted by the municipality in implementing the blacklisting policy to freeze out dodgy suppliers and ensure that ratepayers receive expedited and effective service delivery,” concluded Mbhele.