The Special Investigating Unit (SIU) is probing the irregular awarding of a R10-million tender to a company owned by Eastern Cape boxing promoter Koko Godlo by the Buffalo City Metro.
Godlo's company Imvusa Trading 337 CC was awarded the contract to construct 150 low-cost houses in Potsdam, East London, in 2012.
The SIU is investigating whether the contract was awarded in a fair, equitable, transparent, competitive or cost-effective manner in line with National Treasury regulations and supply chain management policies and whether it led to unauthorised, irregular or fruitless and wasteful expenditure being incurred by the municipality.
The municipality racked up nearly R400-million in irregular expenditure in the year up to the end of June, according to its latest financial statements.
Its council wrote off R583-million of the previously disclosed R931-million irregular expenditure.
The probe was authorised by President Jacob Zuma and the contract is also the subject of a complaint to public protector Thuli Madonsela sent by the United Democratic Movement in Eastern Cape.
Madonsela's office did not respond to inquiries yesterday.
Imvusa Trading was subcontracted by Khumbula Property Services as part of a multimillion-rand project in 2011. Khumbula Property Services's contract was terminated by the municipality after a dispute and Imvusa Trading was later awarded the contract to build the 150 houses.
Godlo, a high-profile ANC member in East London, said he was not aware of the SIU probe.
"I have not heard about it," Godlo said.
Zuma also gave the SIU the green light to probe another Eastern Cape company, Masiqhame Trading 520 CC, awarded a R17-million tender to supply black refuse bags to the Buffalo City Metro.
Last month, Zuma authorised a probe into the affairs of the municipality during the period between February 2008 and September 2015.
The investigation will cover cases of serious maladministration, improper or unlawful conduct by employees, unlawful appropriation or expenditure of public money, intentional or negligent loss of public money or damage to public property and other illegal acts in terms of the Prevention and Combating of Corrupt Activities Act, among others.
Godlo, also an events organiser and former music promoter, will also hold the inaugural Eastern Cape Music Awards this Saturday.
He has also worked with legendary Proteas fast bowler Makhaya Ntini, and female boxing champions Noni Tenge and Unati Myekeni.
sidimbal@sowetan.co.za
R10 m tender to be probed
The Special Investigating Unit (SIU) is probing the irregular awarding of a R10-million tender to a company owned by Eastern Cape boxing promoter Koko Godlo by the Buffalo City Metro.
Godlo's company Imvusa Trading 337 CC was awarded the contract to construct 150 low-cost houses in Potsdam, East London, in 2012.
The SIU is investigating whether the contract was awarded in a fair, equitable, transparent, competitive or cost-effective manner in line with National Treasury regulations and supply chain management policies and whether it led to unauthorised, irregular or fruitless and wasteful expenditure being incurred by the municipality.
The municipality racked up nearly R400-million in irregular expenditure in the year up to the end of June, according to its latest financial statements.
Its council wrote off R583-million of the previously disclosed R931-million irregular expenditure.
The probe was authorised by President Jacob Zuma and the contract is also the subject of a complaint to public protector Thuli Madonsela sent by the United Democratic Movement in Eastern Cape.
Madonsela's office did not respond to inquiries yesterday.
Imvusa Trading was subcontracted by Khumbula Property Services as part of a multimillion-rand project in 2011. Khumbula Property Services's contract was terminated by the municipality after a dispute and Imvusa Trading was later awarded the contract to build the 150 houses.
Godlo, a high-profile ANC member in East London, said he was not aware of the SIU probe.
"I have not heard about it," Godlo said.
Zuma also gave the SIU the green light to probe another Eastern Cape company, Masiqhame Trading 520 CC, awarded a R17-million tender to supply black refuse bags to the Buffalo City Metro.
Last month, Zuma authorised a probe into the affairs of the municipality during the period between February 2008 and September 2015.
The investigation will cover cases of serious maladministration, improper or unlawful conduct by employees, unlawful appropriation or expenditure of public money, intentional or negligent loss of public money or damage to public property and other illegal acts in terms of the Prevention and Combating of Corrupt Activities Act, among others.
Godlo, also an events organiser and former music promoter, will also hold the inaugural Eastern Cape Music Awards this Saturday.
He has also worked with legendary Proteas fast bowler Makhaya Ntini, and female boxing champions Noni Tenge and Unati Myekeni.
sidimbal@sowetan.co.za
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