Three tourism officials in South Africa in hot water over disputed tender

The Department of Tourism (DoT) has instituted disciplinary action against three officials following an independent investigation into the process of awarding a multi-million-rand Tourism Monitor Programme (TMP) tender.

This was confirmed by Tourism Minister Patricia de Lille in a written parliamentary response to Democratic Alliance (DA) MP Haseena Ismail.

In line with the investigative report’s recommendation, disciplinary action has been instituted against three departmental officials. “The disciplinary action process is currently underway,” said de Lille.

The DoT told Newsday several months ago that “the investigation was not directed at the individuals involved in the administration of the procurement process of the bid/tender in question, but the process itself.”

Tourism is a critical component of South Africa’s economy, but it continues to be marred by issues related to crime, prompting the development of the National Tourism Safety Strategy.

The TMP is a flagship multi-million-rand programme aimed at enhancing tourism safety and addressing youth unemployment.

After some training, TMP places unemployed youth at high-traffic tourist sites to boost safety and gain work experience through the Expanded Public Works Programme.

However, the programme came under scrutiny after allegations of a manipulated tender process surfaced around a recent contract awarded at the Ezemvelo KwaZulu-Natal’s (KZN) Nature Reserve in Pietermaritzburg.

In KwaZulu-Natal, the company that was awarded the contract was initially disqualified for failing to meet a requirement to have a physical office in the province – a condition that was later amended.

Despite also falling short of the minimum scoring threshold in their home province of Gauteng’s preliminary evaluation, the company was ultimately awarded the Ezemvelo contract.

Meanwhile, another firm that was earmarked for the project claims that, despite engaging officials regarding an “imminent” official appointment, the bid “was ripped from under their feet.”

The appointed company maintains that its hands are clean, it was never informed of any disqualification, and successfully implemented the project.

Controversy around the bidding at Ezemvelo

Thembanathi Group, a skills development and training company, submitted bids for 18-month DoT contracts at Ezemvelo and KZN, valued at R3.17 million and R4.32 million respectively.

Preliminary Bid Evaluation Committee (BEC) minutes from December 2023 show the group achieved the highest initial technical scores: 90.33 for Ezemvelo and 90.67 for KZN.

In the final evaluation round among shortlisted bidders, Thembanathi placed second for the KZN bid with 93.18 out of 100, behind a bidder that scored a perfect 100.

For Ezemvelo, it received the third-highest score of 82.31. The minutes noted that Thembanathi was “recommended for Ezemvelo as the two highest bidders are already recommended for two sites.”

Following this, DoT officials conducted a due diligence site visit at Thembanathi.

The group was briefly listed as the successful bidder for Ezemvelo on the DoT’s website, before the announcement was removed without a formal appointment letter being issued.

Communications seen by Newsday show that on January 10, 2024, the DoT invited Thembanathi to an introductory meeting of appointed service providers scheduled for January 12.

The company was also asked to begin preparatory work, including recruiting learners, and was introduced to Ezemvelo Wildlife Management to consolidate applications.

According to CEO Ntokozo Gwala, Thembanathi invested resources and contracted staff in anticipation of the project.

On 22 January 2024, the group was informed of an induction workshop planned for 29 and 30 January, but shortly afterwards, Gwala was allegedly instructed by a senior official to halt all work.

According to Thembanathi, the “imminent appointment” was withdrawn after the department claimed its own Terms of Reference (ToRs) were “discriminatory.”

“We were literally on the road to collect CVs when we received this call. No reasons were provided for this instruction,” said Gwala.

However, the Department said that this claim is “unsubstantiated.”

Change of provider

A Departmental Bid Adjudication Committee meeting on 21 December 2023 had noted Thembanathi as the recommended bidder for Ezemvelo but resolved to reconsider previously disqualified bidders.

Earlier in December, MMC Business Solutions JV Siva Security Services had been disqualified for failing to provide proof of an office in the province applied for, as required by paragraph 3.3 of the ToRs.

However, at a BEC meeting on 24 January 2024, some officials argued that the ToRs did not explicitly state that Ezemvelo required proof of an office in KZN, and that applicants for other sites were not held to the same standard.

The committee stated that the “principle used for disqualifying and qualifying bidders should be applicable across.”

It subsequently recommended MMC Business Solutions JV, Siva Security Services, for the Ezemvelo project, with a tender worth R2.86 million.

However, Gwala maintains that if the ToRs were discriminatory, “the correct and ethical” step would have been to re-advertise the bid, calling the internal change “flawed and corrupt.”

Allegations have also surfaced that the BEC chairperson influenced the process due to a church connection, which he categorically denied, stating “absolutely not,” and emphasising that the BEC only evaluates and recommends.

Thembanathi lodged complaints with the Public Protector, the Minister’s office and the Presidency, and is pursuing the matter legally.

Meanwhile, the appointed joint venture maintains that it was never informed of any disqualification and that the project was implemented successfully, a view that was echoed by the Department of Tourism.

The DoT said that it has implemented measures to address fraud and corruption as part of its broader risk management framework.

“Persons with substantiated allegations are encouraged to provide the requisite information and evidence to the Department.”

Alternatively, allegations may be lodged with the National Public Service Commission (PSC) through the toll-free National Anti-Corruption Hotline (NACH) at 0800 701 701 or via e-mail at [email protected], or with any other applicable anti-corruption authority.