ADVERTISEMENT:

 

 
 

The former Makhado municipal manager, Shadrack Tshikalange, who apparently signed off on the contract.

No R5 million for "anti-fraud" contractor

Date: 25 June 2017 By: Anton van Zyl

A consulting company claiming more than R5 million from the Makhado Municipality had a bad day in court two weeks ago. The Limpopo High Court dismissed its claim with costs and the judge was also very critical of claims where possible fraudulent conduct of officials is involved.

Gobela Consulting sued the Makhado Municipality for just over R5,11 million and the case eventually made it to the High Court in Polokwane, where judgment was passed on 8 June. The dispute dates back to 2011, when Gobela Consulting offered to train municipal officials and develop an anti-corruption strategy.

In court papers presented it is mentioned that the sole director of Gobela Consulting, Mr Avhafunani Coxwell Mavhandu, had approached the municipality in February 2011. Mr Mavhandu stated that he had read in a local newspaper that there were problems of corruption within the municipality. He then contacted the municipality and spoke to a Ms Ndou, who referred him to the then municipal manager, Mr Shadrack Tshikalange.

During meetings that followed with Ms Ndou and Mr Tshikalange, Mavhandu proposed his plan to train municipal officials on how to combat corruption and fraud. The programme was to run from May to November 2011 at a cost of R7 500 per person.

On 5 May 2011, Mavhandu received his appointment letter from the municipality, stating that 745 officials and councillors were to be trained. He accepted the appointment and met with Ms Ndou, who explained that the training was to be rolled out in stages.

According to Mr Mavhandu’s testimony, he employed additional staff and entered into service agreements with four other facilitators to assist with the training. When the team arrived at the agreed venue for the first training sessions, they were informed that the training had to be postponed because of “problems” between the mayor and the ANCYL. The “problems” continued for a couple of days and Mr Mavhandu had to release the facilitators.

It appears that Gobela Consulting then unsuccessfully tried to recover their money from the municipality. Mr Mavhandu argued that his company had incurred all the expenses, such as hiring staff and drafting, preparing and printing manuals for the training. The company opted for litigation to try and force the municipality to pay the money.

Deputy Judge President Fikile Mokgohloa did not agree with the complainant’s argument that he had a legal document appointing him as a contractor to do the job. Mavhunda’s legal representative argued that the municipality should first have obtained an order to declare the contract invalid. The municipality’s defence was that the action of the municipal manager had not conformed with the Municipal Finance Management Act and as such was unlawful.

In the judgment, it is stated that legislation prescribes that contracts for goods or services must be in accordance with systems that are fair, equitable, transparent, competitive and cost-effective.  Each municipality must also have and implement a supply-chain-management policy. Judge Mokgohloa quoted the relative legislation stating that all procurements above R200 000 (VAT included) must be subject to a competitive bidding process. Gobela Consulting’s proposal to the municipality did not meet the required standards and the company’s appointment was invalid, the judge said.

Judge Mokgohloa spent some time explaining why an apparent “valid contract” will not guarantee a binding agreement. “It is clear and cannot be disputed that the appointment of the plaintiff is unlawful and invalid,” he said. He then quoted a Constitutional Court verdict where it was stated that “Corrupt practices should not escape the reach of our courts solely on the basis that no application to have them set aside was made. If the validity of a corrupt decision were raised in the pleadings, a court is duty-bound to declare it invalid if that is established by evidence.”

Shadrack Tshikalange, the municipal manager at the time, is no longer at the municipality. His term expired in March 2012, and the Makhado Council opted not to renew it. Prior to his leaving his post, he was subjected to criticism from the local SAMWU branch, and the Soutpansberg Ratepayers’ Association even laid criminal charges against him as responsible officer.

Mr Avhafunani Coxwell Mavhandu is listed on the CIPC database as a director of 10 companies. Two of these companies, Tsedza Security Service and Vhandu’s Civils, have Louis Trichardt addresses. Gobela Consulting’s registered address is in Lyttleton, Pretoria.

 
 
 

Viewed: 3677

 

 
 

Anton van Zyl

Anton van Zyl has been with the Zoutpansberger and Limpopo Mirror since 1990. He graduated from the Rand Afrikaans University (now University of Johannesburg) and obtained a BA Communications degree. He is a founder member of the Association of Independent Publishers.

 
 

More photos... 

ADVERTISEMENT

 
 

ADVERTISEMENT:

 
 

ADVERTISEMENT