Key Takeaways:
- The City of Tshwane has failed to blacklist Edwin Sodi’s companies, Blackhead Consulting and the G-5 Group, despite initiating the process nearly three years ago.
- The city claims it cannot find Sodi’s address, but the Sunday Times was able to contact him through a WhatsApp message.
- The National Treasury’s procurement regulations allow for blacklisting of companies that engage in misconduct, including poor performance, bribery, and corruption.
- The City of Tshwane has struggled to serve Sodi and his partners with blacklisting notices, citing untraceable registered locations.
- The DA opposition leader in Tshwane, Cilliers Brink, accuses the city administration of deliberately trying to sabotage the blacklisting of Sodi.
Introduction to the Blacklisting Process
The City of Tshwane has been trying to blacklist Edwin Sodi’s companies, Blackhead Consulting and the G-5 Group, for nearly three years. The process was initiated after the companies botched a R291m project to refurbish the Rooiwal wastewater treatment plant in Hammanskraal, north of Pretoria. The failure to fix the wastewater plant led to a cholera outbreak in mid-2023, which resulted in the deaths of nearly 30 people in the Pretoria area. Despite the severity of the situation, the city has failed to deliver the notice barring Sodi’s companies from state work, citing the extraordinary excuse that it cannot find his address.
The National Treasury’s Procurement Regulations
The National Treasury’s procurement regulations allow government departments, state-owned entities, and municipalities to blacklist companies and bar them from doing business with the state for up to 10 years. Companies can be blacklisted for various forms of misconduct, including poor performance, bribery, corruption, bid-rigging, fronting, collusion, lying about their broad-based BEE status, and presenting fraudulent tax clearance certificates. The Treasury controls the blacklisting process and maintains a list of all those affected. In this case, the City of Tshwane has struggled to serve Sodi and his partners with blacklisting notices, citing untraceable registered locations.
The City’s Efforts to Blacklist Sodi
The City of Tshwane has made multiple attempts to serve Sodi and his partners with blacklisting notices through prescribed channels, including address confirmation via the central supplier database and other lawful mechanisms. However, these efforts have been complicated by the entities being untraceable at their registered locations. The city’s spokesperson, Sam Mgobozi, said that the city had requested the Treasury to blacklist Sodi in 2024, but the application was rejected due to "procedural shortcomings." The city has since adopted a formal standard operating procedure for supplier restriction and blacklisting and has established a supplier review committee with approved terms of reference.
Allegations of Sabotage
The DA opposition leader in Tshwane, Cilliers Brink, has accused the city administration of deliberately trying to sabotage the blacklisting of Sodi. Brink claims that the city has done everything possible to prevent a blacklisting application from being submitted to the National Treasury. He also alleges that the city hopes that the delay in making the submission will prejudice the case against Sodi. Brink’s allegations are supported by the fact that the city has struggled to serve Sodi and his partners with blacklisting notices, despite having a formal standard operating procedure in place.
Other Companies Facing Blacklisting
The City of Tshwane has set its sights on seven other companies that it wants to blacklist, including the Ntshadi consortium, which is accused of financial misconduct and procurement irregularities in a failed R138m contract to refurbish the city hall building. Another company, Mologadi A Nape Business Enterprise, is facing blacklisting for alleged poor performance and failure to meet project timelines in a contract to refurbish the Refilwe and Caledonian stadiums. The company’s general manager, Kamogelo Baloyi, has denied the accusations, saying that both projects are subject to ongoing contractual and legal disputes.
Conclusion
The City of Tshwane’s failure to blacklist Edwin Sodi’s companies has raised questions about the city’s commitment to holding companies accountable for their actions. The city’s claims that it cannot find Sodi’s address are dubious, especially given the fact that the Sunday Times was able to contact him through a WhatsApp message. The DA opposition leader’s allegations of sabotage are also concerning, and it remains to be seen whether the city will finally take action against Sodi and his partners. The National Treasury’s procurement regulations are in place to prevent misconduct and ensure that companies that engage in wrongdoing are held accountable. It is essential that the City of Tshwane takes these regulations seriously and follows the proper procedures to blacklist companies that have engaged in misconduct.