Tshwane Mayor welcomes investigation by Special Investigating Unit into failed Rooiwal tender

Media statement

26 September 2023

Cllr Cilliers Brink
Executive Mayor of Tshwane

On behalf of the City of Tshwane, I would like to welcome the recently announced Special
Investigating Unit (SIU) investigation into the failed tender to upgrade Rooiwal Waste Water
Treatment Plant.

This is exactly what our multiparty coalition government has been calling for: A high-level
investigation into the matter, with possible criminal charges for all tenderpreneurs who are
found to have benefitted unlawfully.

Furthermore, the SIU investigation will help us in our efforts to clean up the City’s Supply
Chain Management Division and will also assist in recovering the stolen funds which the City
needs to drive service delivery to our residents.

The joint venture CMS, NJR & Blackhead was appointed in October 2019 in respect of tender
USD WS 30-2017/18 for the construction of Phase 1 of the upgrade and refurbishment of
Rooiwal Waste Water Treatment Works at a cost of R291 996 799,07.

However, the joint venture failed to honour the contract and subjected the Rooiwal Phase 1
upgrades to long delays and continued non-performance, which resulted in the City
terminating the contract in August 2022.

The group only completed 60% of the Rooiwal upgrades, despite all the money spent by the
City for Phase 1. Furthermore, a forensic investigation has found that the tender had been
awarded irregularly. In this regard, disciplinary processes are underway against several City
officials who are implicated.

Following my calls to the City Manager, the City is now in the process of blacklisting the joint
venture, together with its shareholders and directors, including the state capture accused,
Edwin Sodi.

Effectively, this means that the joint venture, as well as its shareholders and
directors, will be listed by the National Treasury as restricted suppliers. This
will result in these individuals being restricted from doing or obtaining any
business with the state for a period of five years.

As Tshwane mayor, I am determined to fight corruption and to keep our original
promise to run a clean, effective, and corruption-free administration.

Media enquiries: Sipho Stuurman (siphost@tshwane.gov.za).

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