Construction Company Ordered to Repay R68.8 Million After Unlawful Tender

Mogalakwena: The Special Tribunal has mandated Easyway Tarmac Pave and Projects CC to return approximately R68.8 million earned through an improperly awarded tender by the Mogalakwena Local Municipality. This decision follows revelations about the tender's unconstitutional, unlawful, and invalid nature.

According to South African Government News Agency, the Special Investigating Unit (SIU) spearheaded the investigation, arguing that Easyway Tarmac Pave and Projects CC had fraudulently misrepresented its qualifications and past projects to secure the R167.9 million contract. The contract involved the supply, delivery, installation, and construction of borehole development, storage reservoirs, and bulk gravity supply pipelines.

The tribunal upheld the SIU's evidence, confirming that Easyway intentionally falsified information in its bid documents. The company falsely claimed completion of three projects valued at over R50 million each for various municipalities. Affidavits from municipal managers supported the SIU's findings, revealing that one project's actual value was inflated from R6.1 million to over R50.8 million, while another project was entirely fictional.

The SIU's investigation concluded that without these false claims, Easyway would not have scored enough points to qualify for the tender. Additionally, Easyway's contractor grading legally disqualified them from undertaking a contract of this magnitude.

The investigation also exposed deficiencies in the municipality's evaluation process. The Bid Evaluation Committee's process was deemed unfair and non-transparent, failing to adhere to its own specifications and unable to justify overlooking higher-scoring bidders.

The SIU plans to refer any criminal conduct evidence uncovered during the investigation to the National Prosecuting Authority for further action, in compliance with the Special Investigating Units and Special Tribunals Act 74 of 1996.