Local businesses fight with municipality over security tender

Businesses in Metsimaholo municipality, in the Free State are not happy with how a security tender was handled.

Businesses in Metsimaholo municipality, in the Free State are not happy with how a security tender was handled.

Published Jan 20, 2023

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Johannesburg - A local security companies committee in Metsimaholo Local Municipality in the Free State is up in arms following the appointment of a security company.

They are also calling for the immediate termination of the contract. Metsimaholo Security Companies Committee said the tender should be scrapped and re-advertised. The committee, which includes military veterans, businesses, and community members, wants the municipality to give preference to local security companies.

This is after Metsimaholo Local Municipality recently appointed Isidingo, which is trading as Unitrade 1047 (PTY) Ltd. The company started its work on January 1, 2023. According to the committee, the appointment was irregular and illegal because the company is based in KwaZulu-Natal.

On January 1, members of the committee protested outside the municipal offices to submit a letter of demand to have the tender scrapped and re-advertised. In the letter, the committee said they want Unitrade to leave their municipality with immediate effect. The municipality was given seven working days (until Tuesday) to respond.

The committee said a failure to meet their demands would result in another protest. In its response, Metsimaholo municipal manager Motlatsi Mofokeng said it would be illegal for the municipality to terminate the contract between itself and Isidingo. Mofokeng said the company was appointed based on the law and regulations that govern tender procure processes, which the municipality followed.

“The municipality further wishes to point out that despite its commitment to empowering the local community, the municipality is required by the law to follow prescribed procurement processes set by the same law, hence the municipality will not adhere to your demand. However, the municipality is committed to seeing to it that the project has an element of local empowerment through the employment of people from the local community, which is what the municipality has already done,” read the response.

The committee said they were disappointed with the response. On Friday, they gathered outside the municipal offices and submitted their response, which informed the municipality of another protest action.

“We hereby inform you that we have found your response to be insulting, and we, therefore, inform you that we are proceeding with a mass action whereby the Metsimaholo community at large is involved. We are also following the legal route to resolve this matter", read the letter.

The committee secretary Teboho Seboka said they would render the municipality ungovernable should the leaders fail to meet their demands.

“We have made a declaration to render the municipality ungovernable if the leadership does not correct its attitude towards local business and open up business opportunities for us,” he said.

Seboka said this is an outcry supported by residents who are also tired of the municipality ignoring its constitutional mandate to create a conducive environment for the survival and flourishment of local business people.

“They always prefer outside companies over local suppliers with an excuse that local business does not meet the requirements, yet they have and are still failing to develop a programme to assist and nurture them.

Last week, on New Year’s Eve, we protested outside the municipality offices to block the security company from taking their post. The stalemate was partially resolved when the municipal manager and head of security made a commitment to allow the local military veterans to be absorbed. But the committee refused to accept that on the basis that the awarding of the tender was irregular and illegal,” said Seboka.

He said this has been happening since 2013 when Steven Mohlala was a mayor. He said the problem is continuing even under the current government of the DA/EFF and ANC coalition.

“It said since the period under review that the auditor-general has highlighted maladministration in the issuing of security tenders but it is still happening unabated. We want the review and the cancellation of that contract. Several consultation meetings with the public stakeholders have taken place since then and their resolve is even stronger,” said Seboka.

Metsimaholo spokesperson Gino Albert said of all of the tenders received, only one is a main contractor from Metsimaholo and another one was a subcontractor. Alberts said he also wants to confirm that those who were from Metsimaholo were those who were intending to joint venture with the main contractor.

“Automatically, if the main contractor who holds 70% cannot make it through various stages of the bid evaluation for any reason, the municipality cannot therefore not in the interest of wanting to secure a local contractor, then say the municipality will give the tender to a main contractor simply because it’s joint ventures with a local contractor,” said Alberts.

He said, on the other hand, the municipality was committed to striving towards negotiating with the current service provider to in future find a way to identify a local security company that it can take under its wing and assist in developing such a company to grow.

The municipality, which was governed through an SACP-led coalition following the 2016 municipal elections, was placed under administration in February 2020 after it failed to pass a budget and hold meetings.