City remains top performer, the facts are there for all to see
The City notes the judgment in the case relating to its sewer rehabilitation tender and will abide by the decision of the Court. The relevant Bid Evaluation Committee (BEC) will re-evaluate the tenders of the two companies concerned on the basis required by the Court, with the corrections to the applicants' tender documents as ordered by the Court (see full judgment here).
The BEC will report to the City's Bid Adjudication Committee accordingly for a decision on the award.
The issue that arises with this case is how the City interacts with tenderers when errors occur in tender documents. The City will be required to review its practices based on the Court's direction in this difficult matter of the correct balance between allowing correction of tenders and not prejudicing the rights of other tenderers or compromising the tender process.
As was made clear by the City during the court proceedings, the City has up till now based its actions in such instances on its understanding of the law as determined in previous Court decisions. This case now gives further clarification for the future.
There was no finding of any corruption or irregularity by the Court, despite such hyperbolic claims by the ANC. The case was about the interpretation of correct legal process.
The Western Cape ANC is painting a grossly erroneous picture of the City's financial management practices.
The procurement system is fair, equitable, transparent, competitive and cost effective, in accordance with the Constitution of South Africa. The processes are there for all to see and to interrogate (please visit here). The facts speak for themselves.
In the 2013/14 financial year, the City procured R11,86 billion of goods and services through tenders. A total of 522 tenders were advertised for which 4 966 submissions were received. The City issued 233 033 purchase orders (i.e. 930 per working day). In only 10 cases were tender appeals upheld, showing a high level of certainty on decision-making on tender awards.
The process of tender evaluation and award is rigorous. Bid Evaluation Committees have to report to the Bid Adjudication Committee, which they have to persuade that they have carried out a thorough evaluation and made a recommendation that is in terms of the law. The Bid Adjudication Committee meetings are open to the public and media, something that will not be found in any other metro in South Africa.
In the light of the scale of City contracting, it can be expected that problems arise over a few contracts.
The City's healthy balance sheets and sound financial practices have been locally and internationally lauded by independent parties. The City has received 10 consecutive unqualified audits already.
Furthermore, our exceptional record when it comes to maintaining infrastructure and ensuring there is capacity for growth would not have been possible without an efficient and well regulated Supply Chain Management Department. The quality of their work contributes significantly to the City's ability to consistently rank among the best municipalities in South Africa in terms of capital expenditure (with the majority of this expenditure taking place in poorer areas), and provide the best water, sanitation and electricity services in Africa, as recognised at the most recent African Utility Week Awards.
Our Supply Chain Management Department is responsible for ensuring a sound, sustainable and accountable supply chain that promotes black economic empowerment and local economic development, and encourages small businesses and joint venture partnerships.
I urge the ANC to check the facts which are readily and openly available for public scrutiny.
Statement issued by Alderman Ian Neilson, Mayoral Committee Member for Finance, City of Cape Town, February 4 2015
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