Africa-Press – Eswatini. Investigations have been commissioned into the awarding of tenders to all suppliers and service providers by the Eswatini Youth Enterprise Revolving Fund between 2018 and 2023.
The forensic investigations have been sanctioned by the fund’s Board of directors, which is chaired by Sifiso Dhlamini. It has been gathered that the investigations follow suspicions of alleged underhand tactics being employed in the granting of some tenders to suppliers or service providers and inflation of prices by suppliers. The Eswatini Youth Enterprise Revolving Fund is a Category A parastatal that was established by the Government of the Kingdom of Eswatini in 2009, in response to the vision of His Majesty King Mswati III. The fund is under the Ministry of Sports, Culture and Youth Affairs, and its main purpose is to promote youth employment and alleviate poverty among young people between the ages of 18-35 years.
Investigations
The institution of the investigations was disclosed by the fund’s Manager/Chief Executive Officer, Mandla Nkambule, in a letter he wrote to a service provider who is demanding payment of E950 000. The letter is annexed to the combined summons, which has been issued by the company, Altersol Consulting (PTY) Limited Consulting Limited. “The Youth Enterprise Revolving Fund directors have commissioned forensic investigations into all contracts awarded by the organisation to suppliers /or service providers between 2018 and 2023. Therefore, the Board has requested that we notify you of the delays regarding payments of the final invoice of E580 000 and the under-recovery claim of E281 267,” reads part of the correspondence directed to the company.
In its particulars of claim filed at the High Court, the plaintiff (Altersol Consulting (PTY) Limited Consulting Limited) submitted that on April 30, 2020 the parties entered into a written agreement, pursuant to the defendant (Youth Enterprise Revolving Fund) having invited tenders for business mentorship and coaching. The plaintiff claimed that it duly accepted a tender for the provision of services in the sum of E9 750 000, which was the contract price. As part of the agreement, the parties had agreed that the consultant should be aware that engagement in corrupt, collusive, fraudulent or coercive practices would result in the termination of the contract and may further be subjected to prosecution under the law of the Kingdom of Eswatini.
Agreement
The plaintiff told the court that during the signing of the contractual agreement, it was represented by Thulasizwe Dludlu, in his capacity as Project Team Leader and for the defendant it was Bhekiziwe Maziya in his capacity as the then chief executive officer. These are allegations whose veracity is still to be tested in court and the defendants are yet to file their papers.
It is alleged by the plaintiff that the material terms of the agreement were that the duration of the contract would be the period of up to 36 months with reviews every 12 months and that if in the review period the fund was not satisfied with the performance, the contract might be terminated.
It was purportedly part of the agreement between the parties that the plaintiff would report direct to the operations manager of the defendant and that the plaintiff would provide business capacity building exercises to not more than 500 youth entrepreneurs running over a period of up to 36 months. The company as per the contractual agreement was to facilitate linkages with markets, suppliers and any other relevant business stakeholders for sustainability of the funded business. It was also to supervise and monitor youth business on record-keeping, financial reporting for the generation of periodic reporting on among others; profit and loss statements.
Payments
As per the agreement, it was allegedly agreed between the parties, that the defendant would remit payments for entrepreneurial coaching and mentorship services rendered at the agreed charges in accordance with the following payment plan; 20 per cent payable by the end of the first month upon submission and approval of inception report outlining identified needs and capacity development plans of each assigned enterprise; 20 per cent payable by the end of the third month upon submission and approval of first quarterly report and 20 per cent payable by the end of the ninth month upon submission and approval of the third quarter report. According to the plaintiff, it was allegedly agreed that payment would be made to the account of the plaintiff and as per the payment schedule stated in the contract.
The plaintiff highlighted that a formal demand had been made to the defendant by a letter dated December 5, 2023, and the fund allegedly did not deny the amount, instead acknowledged same through a letter dated December 14, 2023. The company argued that the defendant was indebted to it in terms of invoice No: 100330 in the sum of E580 000, as well as the sum of E381 267, in terms of the under recovery claim. In conclusion the plaintiff alleged that the defendant was liable to it in the sum of E961 633. The matter is still pending in court and the plaintiff is represented by lawyers from M.S Legal in Manzini. The defendant is yet to file its papers.
Price
Meanwhile, it is also revealed in the court papers that the E9.7 million contract price for the tender that was awarded to Altersol Consulting (PTY) Limited Consulting Limited by the Eswatini Youth Enterprise Fund was later slashed by E2 million. Altersol Consulting (PTY) Limited Consulting Limited was awarded a tender to conduct business training, mentorship and coaching to successful loan applicants for the Eswatini Youth Enterprise Fund. The plaintiff (Altersol Consulting (PTY) disclosed that on September 21, 2021, the parties revised the fees structure agreement. According to the revised structures fees the contractual amount was reduced to the sum of E7 76 000, with a reduction of E2 million from the initial agreement. In the initial agreement the contract price was E9 750 000.
“Plaintiff has at all material times performed its obligation in terms of the contractual agreement. At the end of the contract the defendant was owing the plaintiff in unpaid invoices and under-recovery of payments in the sum of E961 633, which was now due and owing,” submitted the plaintiff.
Awarding
In the contract annexed to the court papers, it was stated that following the awarding of the tender to offer business training, mentorship and coaching service to Altersol Consulting Limited by the Eswatini Youth Enterprise Fund in June 2020, the consultancy assignment kicked off successfully. In the report that was compiled by the fund, it is further stated its target of 500 of young entrepreneurs participating in the programme seemed impossible given the pace at which the programme was running, especially the approval rate of loans to young entrepreneurs. It was stated that since the fund had prepared pricing for the assignment based on 500 businesses target, it brought it to the attention of the consultancy firm that reaching this target might not be feasible and requested a review of the fees charges as they looked rather too high for the amount of businesses currently enrolled. The matter between the parties is still pending at the High Court and the defendant, which is the fund, is yet to file it papers in the event it is opposing and/or disputing the claim against it.
Source: TIMES
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