Dear MyPE
The Democratic Alliance (DA) has approached the Special Investigations Unit (SIU) to investigate potential impropriety in the awarding of several tenders to deliver Personal Protective Equipment (PPE) to the Nelson Mandela Bay Municipality. (letter attached)
It has come to our attention that an ANC-affiliated company, Kaziforce, was awarded a tender to deliver protective face masks to the Metro.
Sitting NMB ANC councillor Gamelihleli Maqula, a former director of the company, stands at the centre of what can only be described as the Metro’s own Corona-gate. A family member, Mamella Maqula, is still indicated as the sole director of this company.
It has been confirmed that Kaziforce was awarded the tender as one of only three shortlisted companies.
Protective face masks delivered to DA Cllrs indicate that the Municipality is providing Type 1 masks to public representatives.
Kaziforce delivered 4 batches of 8600 face masks, at a price of R19,50 per mask – or R167 700 per batch. The company, therefore, delivered 34 400 masks at a total price of R670 800.
According to the PPE price list provided by National Treasury as at 28 April 2020, Type 1 masks should be bought at no more than R511 per box of 50, or R10,22 per mask VAT inclusive.
Therefore, the maximum price charged for 34 400 Type 1 masks should be no more than R351 568.
Even more shocking is that these same masks can be bought on Takealot for R300 per box of 50, or R6 per mask.
From the documentation we have been provided it is also clear that the majority of companies delivering face masks to the Metro are overcharging and not following the guidelines set down by National Treasury.
The SIU must investigate this seemingly brazen corruption as a matter of urgency before the syndicate of thugs leading the Metro brings total financial ruin to Nelson Mandela Bay.
The DA warned government that the Eastern Cape is becoming the epicentre of Covid-19 corruption and these revelations prove that the ANC-led coalition of corruption is more interested in lining their pockets than saving lives.
Corruption and maladministration are rife at Eastern Cape municipalities. The DA will not rest until public funds are spent with complete transparency and accountability and value for money is achieved.
We will not allow our people to bear the brunt of ANC corruption. We will fight to move Nelson Mandela Bay forward once again.
Regards
Cllr Nqaba Bhanga
DA EC Provincial Leader
The 19 July 2020 letter to Adv JL Mothibi of the Special Investigating Unit:
Dear Adv Mothibi,
RE: INVESTIGATION INTO ALLEDGED IMPROPRIETY IN PROCUREMENT OF PERSONAL PROTECTIVE EQUIPMENT (PPE) IN NELSON MANDELA BAY METROPOLITAN MUNICIPALITY (NMBMM)
I refer to the abovementioned matter.
It has come to my attention that a company by the name of Kaziforce has been awarded a tender to deliver PPE to the metro in response to the COVID-19 pandemic.
The specific company is wholly owned by one Mamella Maqula, a close family member of sitting NMBMM ANC Councillor Gamalihleli Maqula. I have established through a CIPC (Companies and Intellectual Property Commission) search report that Cllr Gamalihleli Maqula was previously the sole director of the company but that he resigned on the 26TH of May 2018. Mamella Maqula was appointed as sole director of the company from even date. Attached please find a copy of the CIPC search report for your kind information.
Kaziforce delivered 4 batches of 8 600 FFP1 masks, at a price of R19.50 per masksor R167 700 per batch. The company delivered 34 400 masks at a total price of R670 800 to NMBMM
According to the PPE price list provided by National Treasury as at 28 April 2020, FFP1 surgical masks should be bought at no more than R511 per box of 50, or R10,22 per mask, VAT inclusive. Therefore, the maximum price charged for the 34 400 masks delivered by Kaziforce should have been no more than R351 568.
There are many other companies that also contracted with the metro to provide PPE during this time. I have unfortunately been unable to investigate whether there were more instances where NMMBM have been overcharged or whether some of the other companies also had directors that were connected to councillors or officials.
Given the aforesaid, I have attached hereto a list of other companies that have contracted with NMBMM to deliver PPE during this time should you wish to interrogate same.
I now call upon you to urgently investigate the aforementioned matter.
Should you have any queries please do not hesitate to contact me.
Sincerely,
CLLR N BHANGA
DA Provincial Leader, Eastern Cape
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