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Public Protector Exposes R23 Million Tender Scandal in Eastern Cape Stadium Project

Public Protector Kholeka Gcaleka has released a damning investigative report revealing extensive procurement irregularities in the construction of a sports facility in Komani, Eastern Cape. The findings, announced during a media briefing on Wednesday, have prompted the referral of the controversial R23 million Lesseyton sports field tender to the Hawks for criminal investigation.

The investigation, initiated after widespread public outcry and media scrutiny, centered around the alleged mismanagement and maladministration by the Enoch Mgijima Local Municipality in awarding a multi-million-rand contract to Thalami Civils (Pty) Ltd for the development of a multi-sport complex.

According to the Public Protector, the project was plagued by serious procedural and legal violations from the outset. The appointed contractor, Thalami Civils, failed to deliver on critical components of the facility, despite exceeding the project budget by nearly R5 million. The company was initially awarded the contract to construct an athletics track, a rugby and soccer field, netball, volleyball, and tennis courts, along with seating grandstands and other amenities.

However, none of the facilities were completed as per the bid specifications, raising questions about the due diligence and accountability processes followed by the municipality.

Spokesperson for the Public Protector’s office, Khulu Phasiwe, confirmed that procurement processes were not correctly followed. “The tender was supposed to be advertised on three publicly accessible platforms as per procurement regulations. The municipality only advertised on two,” he explained. “Moreover, the tender period was reduced from 30 days to just 14 days without formally notifying all potential bidders, compromising transparency and fairness.”

Perhaps the most alarming revelation was that Thalami Civils was not the highest-scoring bidder. In fact, it ranked fourth among the submitted proposals based on the scoring system used for public tenders. The company that achieved the highest score was inexplicably disqualified.

Phasiwe noted, “The justification provided by the municipality for bypassing the top-scoring bidder was that the company had recently secured another municipal tender. They claimed they wanted to give ‘other players a chance,’ which is not a valid or lawful reason for disqualification under procurement regulations.”

This arbitrary decision-making, according to the Public Protector, not only undermines principles of fair competition but also raises red flags about possible favoritism or corruption.

Public Protector Refers Matter to Hawks for Criminal Investigation

In response to these irregularities, Public Protector Kholeka Gcaleka has officially referred the matter to the Directorate for Priority Crime Investigation, better known as the Hawks, for further criminal investigation. The aim is to determine whether corruption, fraud, or any other criminal conduct played a role in the awarding and implementation of the tender.

“The misuse of public funds and the failure to deliver services to communities cannot go unchecked,” Gcaleka stated. “Those responsible must be held accountable, and the law must take its course.”

She emphasized that such incidents contribute to the erosion of public trust in local government and have a direct impact on service delivery in marginalized communities.

The Public Protector’s office is also calling for urgent reforms in how municipalities manage public procurement. Gcaleka stressed that irregularities of this nature are not isolated to the Enoch Mgijima Municipality but are symptomatic of broader systemic failures across many local governments.

“Transparency, fairness, and compliance must be the bedrock of all government tenders,” she said. “We need stronger oversight mechanisms and better training for procurement officials to ensure that public resources are used effectively and responsibly.”

The unfinished sports field, which was meant to benefit local youth and community sports development, now stands as a symbol of waste and broken promises. Community members have expressed outrage over the mismanagement, especially in a region where access to recreational and sporting infrastructure is already limited.

By exposing this case, the Public Protector hopes it will serve as a cautionary tale and a call to action for other municipalities to clean up their procurement practices.

The Protector’s investigation into the Lesseyton stadium debacle underscores the critical role her office plays in promoting accountability and transparency within the public sector. As the Hawks begin their probe, the nation watches closely to see whether justice will be served and whether lasting changes will follow.

In the words of Gcaleka: “We must ensure that public money serves the people, not the interests of a few.”

Source- EWN

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