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·      The Mahikeng Local Municipality appointed BLTnP Security without a VAT registration ·      BLTnP was paid about R2million per month while its contract indicate it was for R1.7 million ·      North-West Cogta MEC, Oageng Molapisi, told to investigate nepotism allegations

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Sizwe sama Yende

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Cooperative Governance and Traditional Affairs (Cogta) portfolio committee chairperson, Zweli Mkhize, has slammed the awarding of a R63 million security contract at Mahikeng Local Municipality as being “not compliant from the start.”

The awarding of the three-year contract to BLTnP Security in March last year raised concerns because of its link to manager in the office of the mayor, Lekgowa Mahole.

BLTnP used Mahole’s physical address in its bid documents.

During its oversight work in the North-West, the parliamentary committee  however questioned why BLTnP was appointed because it was not VAT-registered.

Acting Mahikeng Local Municipality chief executive officer, Ikotlhaeng Khesa, explained that companies were appointed first and then asked to fix their VAT registration if the contract exceeded R1 million.

BLTnP’s contract per month was R1.750 million but it was paid more than R2 million every month. Documents indicate that the company was paid just over R2.3 million  in April, May, June and July.

“CFO, we don’t like your response. From what I hear it sounds like this: no service provider will be considered unless registered for VAT. CFO says we considered them on the basis of their submissions. We decided who is suitable and we will ask them once we’ve awarded them to register for VAT,” Mkhize said.

Mkhize said that no service provider could be given a contract if the value was unknown.

“We can’t think a contract will be R900 000 and get the shock of our lives when it is R7 million. That is not compliant from the start,” he said.

Mkhize said that other issues such as nepotism would be handed over to North-West Cogta MEC, Oageng Molapisi, for investigation.

The controversy surrounding the security contract started in February 2023 when  TJL Security Services’s contract ended. The municipality failed to advertise for tenders, and their contract was renewed for another three months.

This renewal continued despite council’s objections and requests for a report until the municipal manager, Adv. Dineo Mongwaketse, finally placed the advertisement late last year and proceeded to appoint BLTnP Security without a council resolution.

More allegations were that Mongwaketse signed off a R29.6 million tender in February last year for the construction of the Mmabatho sports facility in favour of Global Extensive Network Project. Mahole’s cousin, Alphons Kurata Makhoba, is a cousin, is a director in the joint venture company. 

This company’s physical address is similar to BLTnP’s.