CITY OF TSHWANE IRREGULARLY AWARDS R585 MILLION IT TENDER

14 September 2023

CITY OF TSHWANE IRREGULARLY AWARDS R585 MILLION IT TENDER

The South African Municipal Workers’ Union (SAMWU) has learnt with great disappointment revelations that the City of Tshwane has irregularly issued an IT tender to the tune of R585 million. The IT tender was awarded to Brilliant Telecommunication, a company with no proven track record or capacity to deliver on a tender of this magnitude.

The North Gauteng High Court has since ordered the City to reveal information which led to the City awarding this tender. As SAMWU, we are concerned that a City which has been pleading financial challenges as one of the reasons why it is unable to pay workers’ 2021 and 2023 salary increases can splurge such large sums of money. Of concern to the Union is that Brilliant Telecommunication made a bid for R74 million, but the tender awarded miraculously inflated to R585 million.

SAMWU remains convinced that the City of Tshwane does have the financial resources to fund the salary increases due to workers. The City has in no way portrayed itself as facing financial challenges, but rather a City that has abundant resources. This is a City that has failed to apply for the Eskom Relief Grant announced by National Treasury. The decision by the City not to apply for this grant was based on the sound financial situation that it is currently in.

The irregular awarding of this tender is a spit in the faces of municipal workers who have served the municipality with pride and dedication daily. The decision to award this inflated tender was made in July, the month when workers were supposed to be receiving their salary increases. This is yet another vindication to the position of the union that the City of Tshwane is not facing any financial challenges but rather financial mismanagement and poor governance.

We now know why workers are being denied their salary increases. Money which is supposed to be used to fund these increases is used to irregularly award inflated tenders which only enrich a few people. Residents and workers of Tshwane are interested in knowing how a tender bid of R74 million was inflated to R585 million. We need to know who the beneficiaries of this tender are.

As SAMWU, we will be closely monitoring the development in the High Court in relation to this tender. Importantly, we will continue demanding the implementation of workers’ salary increases as the City has proven to have the money to do so.

Issued by SAMWU Gauteng Province

Mpho Tladinyane
Gauteng Provincial Secretary
083 941 5888

Or

Precious Theledi
Tshwane Regional Secretary
072 601 8876