CoCT spent R42 million irregularly at its controversial Strandfontein camp for homeless people

The City of Cape Town has spent R42 million irregularly at its controversial Strandfontein camp for homeless people

This was revealed by the Special Investigating Unit (SIU) report on Tuesday, after President Cyril Ramaphosa authorised the SIU to probe any allegations relating to the misuse of COVID-19 funds across all spheres of government.

The President gave the commitment that if the SIU found evidence that a criminal offence had been committed, it was obliged to refer such evidence to the National Prosecuting Authority.

This report says the city of Cape Town failed to follow a proper procurement process

‘’The investigation in respect of the procurement process followed by the CoCT in respect of the award of the contract to Downings in relation to the supply of tents, toilets etc. and the conduct of officials concerned has been finalised. The investigation into this aspect determined that the procurement process followed by the CoCT in sourcing the various items and services required from Downings was irregular and as such falls to be set aside,’’ said the report.

‘’The CoCT failed to test the market in circumstances where it was obliged to do so, but merely accepted the quotation submitted by the service provider concerned. As such, the procurement process was not fair, transparent, equitable or cost-effective. Furthermore, the investigation revealed that the failure by the CoCT to follow a proper procurement process resulted in the incurrence of irregular expenditure in the amount of R42 293 285. Moreover, the service provider profited excessively to the detriment of the CoCT,’’ the report revealed.

The Good Party’s Brett Herron says the camp was condemned unsuitable for human habitation in July 2020 That was just 6 weeks after it was established to house people during the hard lockdown

He says the city spent R53 million on the camp, meaning that 80% was irregular expenditure

Herron has called for an investigation when Local Government, Environmental & Development Planning MEC, Anton Bredell, who admitted that there was no tender process for the cost incurred

Herron wants consequences taken for all those involved

‘’Now there should be consequences. The DA must demonstrate the accountability and good governance it claims. Heads should roll. Mayor Geordin Hill-Lewis needs to fire the Mayoral Committee Member for Safety and Security, JP Smith, who set up the camp using his Disaster Risk Management department and who championed the camp as the solution for homeless people.

‘’The City Manager and Chief Financial Officer need to be reported to Council and they need to be investigated for their role in approving an obviously excessive amount for tent hire and failing to use a tender process,’’ added Herron.

Herron wants further investigation to be taken in this matter

‘’The fact that the City proceeded with the hire is suspicious and requires further investigation – in particular whether the DA or any person received any benefit from the “excessive” profits. Quite obviously R53 million could have provided permanent facilities to assist homeless people with a pathway away from living on the streets.’’

The SIU has investigated 5,467 contracts awarded to 3,066 service providers with a total value of R14.3 billion. Investigations have been finalised with respect to 4,549 contracts, of which 2,803 contracts were found to be irregular. This amounts to 62% of the finalised investigations.

 

SCREENSHOT: SIU Report

Done By: Mitchum George