14 July 2020

Dear Municipal Manager,

We noted in the Potential Irregular Expenditure Report tabled on 30 June 2020, that over R2 million of legal services was raised as possibly irregular in the January – March 2020 period.

The law firms are listed below.

Will you please:

  • provide details of what legal matters each of these law firms handled,
  • why was SCM procedure not followed?
  • are disciplinary steps being taken?
  • who is being held accountable?
  • what is the need to employ Eastern Cape attorneys?

2020/06/30 Ordinary Council Meeting Agenda

Item C/2/185/06/20  Implementation of SCM (Supply Chain Management) Policy for Jan. – March 2020, annexure C  Potential Irregular Expenditure

Description of Incident:  The procurement of legal services in terms of the contract SCM/2018/90/CORP.  The 1st ranked service provider was not appointed and the rates charged increased excessively.  The project manager processed and Director approved without providing any motivation which served as a rational basis for such an approval.  And for HDRS, “…excessive/unexplained increases on rates charged.”

Responsible Official:  L. Loliwe, Manager of Legal Services

Amount and Supplier:

R637,452    Dyushu & Majebe Attorneys, East London

R503,606    HDRS, Plett

R32,775      Kemp & Associates,  CT and Plett

R85,000      Nandi Bulabula Inc., Plett

R495,000    Siyathemba Sokutu Attorneys, East London

R236,900    Boqwana Burns Inc., Port Elizabeth

R2,009,796  Total

 

We look forward to your prompt reply.

Kind regards,

Peter Gaylard

Chairman