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Charges will be laid if Ndlambe reverse osmosis millions are not repaid

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Dear MyPE

The Democratic Alliance (DA) will not hesitate to lay criminal charges after it came to light that Quality Filtration Systems (QFS) is unwilling to repay the R20 million it received in advance after being awarded the tender to provide a reverse osmosis plant for the Ndlambe Local Municipality.

The DA has seen reliable correspondence by QFS director Musawenkosi Ndlovu, stating that “QFS has determined the equipment manufactured for the Kowie project is valued higher than the payment paid to QFS. Various administrative shortcomings have resulted in substantial damages to QFS.” Ndlovu further noted that the High Court judgement, declaring the tender unlawful and irregular, did not order QFS to repay the funds.

This is blatantly absurd and a false interpretation of the judgement. The judgement notes that “once the contract is set aside, QFS must effect restitution and repay that amount to the municipality.” And while that statement does not form part of the actual order, it is nevertheless trite and part of the common law.

The court noted that the R20 million was paid to QFS by the Ndlambe Municipality on 25 May 2020, before the tender had been signed by the parties. It should also be stressed that all parties were aware at this time that the matter was before the court.

The Ndlambe Municipality has received no value for the money it paid to QFS. This alone would be grounds to seek its recovery. QFS claim that that they have incurred costs which exceed the value of the money paid is irrelevant as public money must be fully accounted for.

The court also ordered that the contract was unlawful and was set aside. This renders the process invalid from the outset and any payments made or services rendered must be restored.

The DA will, therefore, submit a motion to council calling for the Municipality to immediately initiate legal action against QFS for the recovery of the payment made, plus interest accrued. Should there be no movement in this regard within the next 14 days, the DA will have no hesitation in laying criminal charges against the directors of QFS in their personal capacities for the theft of municipal funds.

We cannot allow our municipality to be looted with impunity, especially in a time of crisis. The DA will not permit this matter to be brushed under the carpet.

Regards

Cllr Ray Schenk
Ndlambe Local Municipality

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