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
We look forward to your prompt reply.