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Press Releases - 28 May 2010
Cape Times Report innacurate and misleading
City
clears HWB on tender charge
Unsubstantiated accusations have been made with regard to the procurement of professional service providers and contractors.
All appointments for the Integrated Rapid Transit Project have been made
in accordance with the City of Cape Town's Supply Chain Management Policy,
and the Municipal Finance Management Act. All appointments are scrutinized at the City's Bid Adjudication Committee which meets regularly and is open to
the public. No councillor is involved in the procurement process in terms of
national legislation.
All appointments are also reported to Council. In addition the IRT monthly progress report on progress made which includes all appointments. These
are all available on the City's website.
The total estimated cost of Phase 1A of the IRT project, which is a
multi-year project is R 4 309 million and to date the total value of awards made through the Supply Chan Management process is R 1 334 million of which 79.3 % was awarded through an open tender process and 20,7% awarded in terms of an increase in contract sum, deviation process or single source appointment.
All of these processes are laid out in Council's Supply Chain Management
Policy which is available on the City's website, as well as all tenders awarded.
The current value of professional service appointments made through the
Supply Chain Management process to date is R 319.9 million which represents 7.4
% of the total estimated total project cost.
Further professional service appointments are still to be made and it is anticipated that the total
value of these appointments will be within industry norms which can range
between 12% for standard projects to more than 20% for multidisciplinary complex projects.
These professional services not only cover design and construction
supervision costs of IRT infrastructure but also system planning, business
development, communication as well as (taxi) industry transition and support, and
project support services.
The IRT Project has been the subject of a forensic audit and a Due
Diligence Study. No incidence of irregular practice has come to light.
The value of work awarded to Historically Disadvantage Individuals working on the IRT project and measured in terms of the Supply Chain management Policy's Preferential Procurement System is 40 %.
Should anyone have any substantive concerns or evidence of irregular procurement activities that they bring this to the attention of the City Manager immediately for him to investigate.
Kylie Hatton
Manager: Media
City of Cape Town
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