Local business people are losing tenders to outsiders because they don't do the paperwork properly, according to Makana Municipality's supply chain manager, Akhona Madikane.
Local business people are losing tenders to outsiders because they don't do the paperwork properly, according to Makana Municipality's supply chain manager, Akhona Madikane.
She was presenting an analysis of tenders awarded from January to June to local entrepreneurs at a mayoral business forum on Wednesday.
Going through a list of tenders awarded in this period, Madikane identified the reasons why so many had been awarded to outsiders:
* A local company tendered to supply and install network and server equipment for the municipality. But the company didn't get to the scoring stage, because it failed to submit what was required.
* Sixteen bidders tendered to construct civil works for Node 2's Multi Purpose Centre. A Grahamstown bidder failed to submit a billing and tax clearance certificate.
* A tender for a heavy-duty photocopy machine had six companies responding – three were from Grahamstown. No local company was appointed because missing from their applications were billing and tax certificates and certified copies of identification documents.
There were also tenders in which no Grahamstown companies expressed interest, including the upgrading of the Alicedale Water Treatment Works worth R8.8 million, to which seven companies responded – none from Grahamstown.
A company from Port Elizabeth, BRO Civils, was also on the list for tenders awarded, to construct facilities for Lavender Park for R5.6 million. The municipality couldn't provide information about his tender, however, because according to the Municipal Manager, Ntombi Baart, the matter was in court.
One local contractor welcomed the report, but nevertheless criticized supply chain management policy. "Some of us have seen that this supply chain management policy does not empower local people. It is high time it changed," he said.
Local businessman, Otto Ntshebe, said if the municipality wanted to encourage developing businesses, they couldn't disqualify them for simply failing to provide the right documents – unless they were "helping develop millionaires".
However, Ntshebe applauded the municipality for taking their concerns to heart by making the presentation. "You are beginning to hear our cry," he said. Councillor Julia Wells said that as councillors, they shared the frustration of tenders being mostly awarded to outsiders. "Let us be reasonable, let us be kind and give them a few days so that they are not disadvantaged over a small thing," Wells argued.
Sounds of agreement from the room showed overwhelming support for this proposal. But Baart and chairperson of the finance portfolio committee, Pierre Ranchhod, said that they couldn't compromise National Treasury regulations if they wanted a clean audit. "It is opening up a can of worms," Ranchhod said. He said it was better to go back to the drawing board to find ways of empowering emerging business people.
Director for Local Economic Development, Riana Meiring mentioned that the supply chain management policy is being revised and will be brought to the next mayoral forum in December. “It will make things easier for Grahamstown businesses and will also serve as a training event so that they know these are the documents that are required [to respond to a tender]."
