Referred to as: service providers · Service Providers · Service providers
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In April 2022, a tender was announced for the appointment of service providers for provision of reflective marking of SAPS vehicles for the period April 2022 to March 2025.
“an announcement of a tender for a contract for the appointment of service providers for provision of reflective marking of SAPS vehicles and that is for the periods, as you can see stated there, April 22 to March 2025”
There are weekly operational meetings with all service providers where challenges with monitoring and related functions are discussed.
“there are weekly meetings held with all service providers ... there is what we call an operational meeting”
Advocate Chaskalson suggests the service providers currently appointed were appointed under a tender from the previous decade, not a recent tender.
“those current service providers are the providers who were appointed to the tender which I think is tender 1/2016/2017”
There is a fixed rate for ad hoc security services applied when user departments request guards, which must be authorised by checking the general ledger and issuing purchase orders.
“For these sorts of ad hoc services ... you know what the contract with these service providers says in relation to rates ... You have a fixed rate that you apply when you use that service provider ... you look at the general ledger to see if there is money ... You authorise the deployment of the guards and you issue a purchase order.”
There was a risk of service providers going to court for unpaid invoices as contracts were ending and no extensions secured, risking court orders against the City.
“People were going to court and we were going to pay them on a court order because there will no longer be a contract to pay those invoices”
Deputy Chief Dhlamini said he was not comfortable working directly with the entities to establish a direct working relationship, preferring that they start with the CFO and that he does not want to owe any person any favour or be involved in direct payment matters.
“I am a free runner... I do not want to owe any person any favour or anything... I cannot be communicating with them direct on matters of payments. There are people within the section who deal with that.”
An email from Herman Segolela on 31 December discusses the general ledger and vote number for security deployment costs, instructing service providers to submit invoices to the Department of Water and Sanitation for payment.
“The email was written by Herman Segolela on the 31st of December... It says: 'Colleagues, below find correspondence indicating that the GL and cost centre number from which these services will be paid for further handling and urgent deployment of security at both Klapperkop and Brickfield. These service providers shall submit all invoices to the Department of Water and Sanitation.'”
ADV Mosikili alleges Major Phiri has an apparent conflict of interest due to financial transactions with people employed by the service providers.
“it is apparent that for someone in your position who can influence the flow of work , that there is an obvious conflict of interest in you having financial transactions , as we have seen in your bank account , with people who are employed by the service providers .”
ADV Mosikili states some of the amounts in Major Phiri's account clearly reference services provided by service providers and that Major Phiri's answers about these amounts are unsatisfactory.
“a lot of amounts , or a few amounts coming into your account , they clearly reference service provided , and your answers to that , we are going to submit that they are unsatisfactory .”
ADV Mosikili argues that paying R200,000 into an inactive service provider's account is inappropriate and suggests it attempts to hide the true nature of the transaction.
“for example , an answer to him paying R200 , 000 . 00 into a service provider 's account , clearly he says well , he had no knowledge of that . We say that kind of answer is untenable . ... You somehow paid money , 200 , 000 at the very least , into an active service provider for the City of Tshwane is inappropriate and also demonstrates an attempt to at least hide the true nature of that transaction .”
The Tshwane Metropolitan Police Department (TMPD) issues deployment letters authorizing service providers to guard specified areas, such as wastewater treatment plants.
“deployment letters where TMPD authorises service providers to go and guard all these wastewater treatment plants in this instance”
The document cited indicates that services shall be delivered to both areas by the council and service providers to ensure inhabitants do not suffer disruption of services.
““Notwithstanding the date hereof, the services shall be delivered to both the area and the other area by the council and the service providers so that the inhabitants of both areas shall not suffer disruption of service.””
Mid-level people are responsible for contract management including ensuring service providers deliver as per contract and implementing penalty clauses for non-compliance.
“mid-level people that were supposed to go and check upon the service provider, we call it contract management, to ensure that they actually do what they say they do ... there is a penalty clause that must be implemented. That is part and parcel of the contract”
From 1 March 2022 to end of January 2026, the total amount paid under the TMPD contract to all service providers was approximately R2,900,023,467.84 or about R730,857,466 per annum for a financial year July to June.
“total amount paid under this TMPD 2/2016/2017 to all the service providers since inception... 1 March 2022... end of January 2026... was R2900023467.84 which makes it approximately R730857466 per annum, our annum... It is a financial year, which July to June”