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THE Thulamela municipality in Limpopo has allegedly awarded a tender to a company that is neither registered with Cipro nor with the South African Revenue Services.
The tender, for the marketing and management of the public viewing area during the Fifa World Cup at Thohoyandou Stadium, was advertised in March and the closing date was April 15.
The successful bidder was supposed to render services from June 11 until July 11.
Among the services to be provided would be a stage, sound system, security, cleaning, marquees, VIP areas and a DStv licence.
The tender was controversially awarded to Khanyisa Blue Raindrops Construction despite the fact that there were no official records of the company's existence.
A Companies and Intellectual Property Registration Office (Cipro) official confirmed yesterday there were no records of the existence of the company in their system.
"We have searched but could not find any company called Khanyisa Blue Raindrops," said the official, who spoke on condition of anonymity. The municipality confirmed yesterday that the company had submitted both Cipro and Sars documents.
This had convinced them to believe the company was compliant.
"We are not sure whether the documents submitted by the company were fraudulently obtained or not. It will be the subject of our investigation," said municipal manager Makonde Mathivha yesterday.
Mathivha said the municipality would rescind the decision to appoint the company pending investigations.
"I'm not directly involved in verifying whether companies appointed to render services to the municipality are compliant or not.
"Perhaps I was misled by my own officials, but we will investigate," he said.
Khanyisa had allegedly billed the municipality R2million for the duration of the Cup.
"But because the company was newly appointed and was still to sign a contract, it will be easy to terminate their contract.
"We will act once we have completed our investigations," Mathivha said.
Attempts to get comment from the company's owner were unsuccessful as his phone was switched off.