Pilgrim's Rest shop leases unlawful: Madonsela

No fear No Favour no forced Evictions......



Sapa | 20 December, 2013 09:08

Thuli Madonsela. File photo

The awarding of tenders for shop leases in Pilgrim’s Rest was unlawful and was characterised by irregularities and maladministration, Public Protector Thuli Madonsela said on Thursday.

“The allegation of unlawfulness and impropriety with regard to the award of the tender for the leasing of business premises at Pilgrim’s Rest is substantiated,” Madonsela said.

“The process was characterised by gross irregularities and maladminstration.”  The report, titled ’Poisoned Processes’, on alleged maladministration by the department of public works, roads and transport in Mpumalanga, was released on Thursday by Madonsela’s office.  

Madonsela said maladministration included having a bid specification committee without the requisite 60% quorum, giving a high score for price to a bidder whose bid was one of the lowest.

It was also found that no due diligence exercise was carried out to assess functionality and sustainability of businesses considered for leases, and suspected fraud in that the letter of appointment for the bid favourably considered that the price was stated as R19,100 instead of the R10 416 rent amount.

For some of the tenders the evaluation criteria changed with “dubious” reasons given and no proper records were kept and thus resulted in a changing narrative given during the investigation.

“The business that got the leasing contract on account of the process of R19,100 did not qualify for the contract and the conduct involved in awarding such contract was accordingly unlawful, improper and constitutes maladministration,” said Madonsela.

“Businesses that legitimately qualified to be awarded the tenders and many of which were running sustainable businesses beneficial to the community were prejudiced by or suffered an injustice due to the department’s maladministration with regard to the award of new leasing tenders.” 

The allegation of insufficiency of notice given to businesses occupying the premises was substantiated and a 30-day notice did not provide reasonable time for businesses to wind up arrangements or make fair arrangements for employees.

Pilgrim’s Rest is a national heritage site and tourist attraction where businesses rent the buildings from about R1700 per month.

There are 21 businesses in town and the businesses that rent the property are selected through a tender process.

Madonsela said the allegations investigated concerned the propriety of the selection process and the qualification of some of the bidders that were ultimately selected.

In the report, she found the allegation, that the department’s handling of the request to review the decision to grant a 30-day notice was improper, was substantiated.

“The department did not apply its mind to the request and the fairness of its previous decision to serve eviction notices,” said Madonsela.

On whether the department’s handling of the issuing of notices caused prejudices, Madonsela found that because it failed to give proper notice business owners, the community and sustainbility of Pilgrim’s Rest was prejudiced.

“The conduct of the department in this regard constitutes improper conduct and maladministration.”  Remedial action to be taken include that the head of department should cancel the awarding of the contracts for the new shop leases in Pilgrim’s Rest.

Also to embark on a new procurement process and include the leasing of buildings on the Pilgrim’s Rest Heritage Site which were without valid lease agreements, said Madonsela.

“Ensure that the procurement process complies with the relevant laws and related prescripts as well as the standards of fairness, equability, transparency, competitiveness and cost-effectiveness as required...” 

“Ensure that owners of current businesses that are not successful in the new bidding process are given adequate vacation notices which should not be less than three months,” Madonsela said.

The head of department should also ensure that the process was “heritage compliant” to minimise any adverse effect on maintenance and conservation with regard to the interests of all stakeholders, she said.

The record-keeping systems should also be reviewed, and to identify and remedy gaps alluded to this report.

The department should also deal with the incidences of non-compliance with policy and prescripts as well as any unauthorised, irregular or wasteful and fruitless expenditure arising from non-compliance, and must take effective and appropriate disciplinary steps against guilty officials.

Times Live

COMMENTS BY SONNY

 The department of public works, roads and transport in Mpumalanga, 

UNDER HANDED DEALINGS ARE EVIDENT ONCE MORE.

THE ANC IS NOT THE GUARDIAN OF SOCIETY BUT THE DESTRUCTOR!

TIME FOR THEM TO GET RID OF ZUMA THE ROOT OF ALL EVIL!

THE ECONOMY WENT DOWN BECAUSE OF ANC CRIME AND CORRUPTION!

IF WE DON'T STOP ZUMA THEN WE WILL WELCOME HIM AS AFRICA'S

NEXT IMPERIAL DICTATOR!