Tshwane moves to blacklist Sodi's companies eight months after instruction

Eight months after the city of Tshwane first gave an instruction to serve controversial businessman and ANC benefactor Edwin Sodi with a notice of intent to blacklist his companies, the letter was sent this week.

The city discovered that its initial instruction was not carried out when SowetanLIVE made inquiries about steps taken after the termination of the Rooiwaal wastewater treatment plant contract with Sodi's companies.

Tshwane Mayor Cilliers Brink has since announced that the joint venture between Sodi's two companies NJR Projects and Blackhead Consulting as well as their partner CMS have been given 14 days to respond to the intention to blacklist them.

The companies were in 2019 awarded a R292m tender by the city to upgrade its Rooiwaal wastewater treatment plant to improve the quality of water in the cholera-hit Hammaskraal area. The contract was terminated in May last year and criminal charges laid against the three companies. 

City manager Johann Mettler told SowetanLIVE on Monday that he had launched a probe to find out why the letter he signed in October last year was never dispatched by the then CFO Umar Banda. 

Mettler told Sowetan the city had intentions to blacklist Sodi as early as October, a month after he was appointed to his position. 

“I was presented with a draft letter dated October 12 last year that was given to the then CFO [Banda] for signature. It came to my knowledge now that such a letter was never signed and dispatched despite clear instructions in that regard. I have instructed that the letter stating our intention to blacklist be dispatched forthwith to the three implicated companies, their directors, and shareholders. They will be required to give reasons within 14 days as to why they should not be blacklisted. We will take the matter from there with my office closely monitoring the process,” Mettler said.

“The circumstances surrounding this undue delay will also be investigated by our internal audit. I initially was under the impression that it was sent in October already. I became aware today [Monday] upon your [media] inquiry when I requested a copy of the signed letter.”

Mettler said the letter was dispatched on Tuesday. 

The letter is the first known step taken by any sphere of government to blacklist Sodi’s companies despite numerous state contracts that have been cancelled after he allegedly pocketed millions from the projects. 

Brink said the city has resolved to blacklist the joint venture, together with its shareholders and directors including state capture accused Sodi.

“The city intends to to invoke the provisions of the preferential procurement regulations as stated in circular 43 of the National Treasury,” Brink said. “Effectively, this means that the joint venture CMS, NJR and Blackhead as well as its shareholders and directors will be listed by 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.”

According to the National Treasury, for blacklisting of a company to be effected, departments and state entities are required to make such a request.