Ex-council manager in hot water over 'irregular tender' for Komani stadium

An Eastern Cape municipality says it may open criminal cases against its former manager and other officials and start a civil case to claw back R20m it lost to a company responsible for building a dodgy stadium in Komani.

Enoch Mgijima local municipality was responding to a scathing report from a legal firm commissioned by the provincial cooperative governance and traditional affairs department (Cogta) which investigated the alleged poor workmanship by Thalami Civils Luthando Jojwana.

The company was responsible for the construction of the Lesseyton Sportfield which made headlines in 2021.  

Cogta MEC Zolile Williams found that tender bid processes were flouted, and that Thalami was handpicked for the job.  

The report implicated among others, then municipal manager Chris Magwangqana, former chief financial officer Gcobani Mashiyi together with members of the bid specification committee and the bid evaluation committee behind what it hinted was a collusion.  

Magwangqana was fired in April 2019 by the council for failing to protect municipal assets from being auctioned off. Mashiyi resigned to join Chris Hani district municipality as a CFO. 

The report raised concerns about how Thalami Civils got the tender despite scoring fourth in the bidding process and having been the most expensive bidder, said the report.

The tender was never advertised in the National Treasury’s tender advertisement portal, which is in violation of the tender processes. The report concluded that the officials in the bidding committees were likely to have colluded with Thalami.  

"The award of the contract to Thalami Civils was accompanied by material irregularities...As a result of our findings, there is a reason to believe or suspect that the following offences may have been committed by officials of the municipality. ..The erstwhile accounting officer of the municipality deliberately or in gross negligent way failed to take all reasonable steps to prevent corruptive practices in the implementation of the municipality's supply chain management policy," read the report in parts. 

The report further said the members of the bid adjudicating and evaluation committees might have acted negligently to manipulate the bidding process. 

Shortly after the tabling of the report at the municipality’s offices on Wednesday, Williams said: “We are recommending that all officials involved be prosecuted, and whoever must be held accountable.” 

He said that the management of consequences must be followed through by the full might of the law.

“This includes following upon service provider to recover the taxpayers’ money,” said Willliams.  

The sports field was thrust into the spotlight and caused intense scrutiny from the public and political parties after pictures circulated on social media showing the unmanned pitch with two goal posts and steel grandstand.  

The pictures were taken at a ribbon-cutting ceremony in October 2021.  

Local government, the Hawks and the public protector’s office launched probes after members of the public reported suspicions over the hefty price tag which at the time stood at R15m.  

After an inspection in loco at the field on March 18 2022, former public protector Adv Busisiwe Mkhwebane said there was no value for money in the project. She also said the stadium should not have cost even R1m.  

Enoch Mgijima spokesperson Lonwabo Khowa said the council and municipal management have acknowledged the report and are fully committed to implementing the recommendations provided.  

“A comprehensive review will be conducted, and implicated officials will be subjected to a fair internal process. Enoch Mgijima municipality staunchly opposes all forms of fraud and corruption and will cooperate fully with law enforcement agencies to eradicate corruption," he said.