CAPE TOWN - First it was found to be a potential health hazard where the risk for Covid-19 or TB transmission was high due to gross overcrowding – now the the DA-led City’s procurement process to establish the controversial Strandfontein homeless shelter resulted in staggering irregular expenditure of more than R42 million.
This is contained in a Special Investigating Unit (SIU) final report that President Cyril Ramaphosa authorised to be released on Tuesday.
This report was after the SIU investigated procurement of goods, works and services associated with the Covid-19 pandemic.
The temporary shelter had housed homeless people who were removed from Cape Town’s streets to apparently limit their exposure to the coronavirus.
A 36-year-old man was arrested in connection with the rape of an 18-year-old at the shelter while the City had issued fines of R500 to the homeless housed there.
The site opened at the end of March 2020 and was closed just six weeks later.
There were irregularities in its establishment, according to the SIU, and the City’s failure to follow a proper procurement process resulted in the incurrence of irregular expenditure in the amount of R42 293 285.
“The City failed to test the market in circumstances where it was obliged to do so, but merely accepted the quotation submitted by the service provider concerned. As such, the procurement process was not fair, transparent, equitable or cost-effective,” the SIU said.
GOOD party secretary general Brett Herron had lodged a complaint with the SIU against the City in 2020.
In response to the report, the City said: “The City has not yet received the detailed SIU report, and will study this in detail once received. If there is any evidence of wrongdoing, the City will not hesitate in taking action against those responsible.
“The City’s emergency procurement process was conducted in terms of Supply Chain Management Policy, the National Treasury Emergency Procurement Guidelines and the Municipal Finance Management Act,” the City said.
It claims emergency procurement processes were followed in order to comply with the extremely tight deadlines imposed by the Alert Level 5 lockdown regulations announced by Ramaphosa on March 23, 2020 when a national lockdown was instituted on March 27 of that year.
“The City of Cape Town like all other metros and towns was compelled to comply with all national government disaster regulations. The regulations specifically tasked municipalities with providing emergency accommodation for homeless persons,“ said the City.
But Herron believes that there should be consequences following the findings.
“The DA must demonstrate the accountability and good governance it claims. Heads should roll.
“Mayor Geordin Hill-Lewis needs to fire the Mayco member for safety and security, JP Smith, who set up the camp using his Disaster Risk Management department and who championed the camp as the solution for homeless people. The City manager and chief financial officer need to be reported to council and they need to be investigated for their role in approving an obviously excessive amount for tent hire and failing to use a tender process.”
He said the money could have provided permanent facilities to assist homeless people with a pathway away from living on the streets.
“The fact that the City proceeded with the hire is suspicious and requires further investigation – in particular whether the DA or any person received any benefit from the ’excessive’ profits,” he said.
Global medical rescue organisation Doctors Without Borders (MSF) had also flagged the camp as a potential health risk, saying gross overcrowding made for dangerous Covid-19 and tuberculosis transmission risks.
Cape Times