MAHIKENG MAIL - MAHIKENG: The Mahikeng Local Municipality is facing scrutiny over the appointment of a security company, with possible irregularities coming to light in a parliament committee meeting this week.
According to what was reported to the committee, the municipality awarded the contract to the security company despite the fact that it was not registered for Value Added Tax (VAT).
This on its own triggered a significant issue, as the Municipal Finance Management Act (MFMA) requires bidders for tenders over R1 million to be registered for VAT.
The municipality’s decision to award the contract to the security company despite its non-compliance with VAT registration requirements raises serious questions about the procurement process, as at the time when it was raised by opposition parties, the municipality denied any wrongdoing.
It is unclear how the company was able to secure the contract without meeting the necessary requirements as the municipality still continued to award them a contract company and instructing them to register for VAT. The fact that the contract was awarded despite the company’s non-compliance suggests a lack of due diligence, oversight and possible indication of nepotism from senior officials within the municipality.
The implications of this irregularity are significant. If the contract was indeed improperly awarded, it could be subject to review and possible cancellation.
The revelation of possible irregularities in the appointment of the security company highlights the need for a thorough investigation into the matter. The Committee Chair, Zweli Mkhize said the MEC for COGTA, Oageng Molapisi is yet to get information regarding the accusation relating to nepotism and the increased VAT of the security company appointed at the municipality.
The revelation of the appointment of the security company was a shock to the committee, calling for serious consequences for the municipality and the security company involved.
