Africa-Press – South-Africa. Controversial businessman Edwin Sodi will be blacklisted from doing business with the Tshwane government.
Sodi’s company, Blackhead Consulting, was linked to the failed R290-million upgrade of the Tshwane wastewater treatment plant.
Blackhead was part of a joint venture, along with two other companies – CMS and NJR – who were awarded a tender in October 2019 to upgrade the Rooiwal treatment plant.
They were paid R291 996 799.07 by the metro, despite only completing 60% of the first phase of the upgrade.
The contract was terminated in 2022 for poor performance.
The mayor of Tshwane, Cilliers Brink, said on Thursday all the companies linked to the tender would be blacklisted from doing business with the municipality.
“After my calls to the City Manager, the City has now resolved to blacklist the joint venture, together with its shareholders and directors, including the state capture accused, Edwin Sodi.
“The City intends to invoke the provisions of the Preferential Procurement Regulations as stated in Circular 43 of the National Treasury. Effectively, this means that the joint venture CMS, NJR & Blackhead, as well as its shareholders and directors, will be listed by the National Treasury as restricted suppliers.
In a statement, Brink said:
The Rooiwal treatment plant was thrust into the spotlight in recent weeks because of the cholera outbreak in Hammanskraal.
The need for the facility to be upgraded led to increased concerns about the water quality supplied to Hammanskraal residents.
Rooiwal is an extensive facility, which is responsible for cleaning wastewater.
Because of the botched tender, the City had to seek help from the national government.
Completing the upgrades to Rooiwal will cost R4 billion, and a loan must be secured. The project is estimated for completion in 2026.
“The joint venture has only completed 60% of the Rooiwal upgrades, despite all the money spent by the City for Phase 1. Furthermore, a forensic investigation has found that the tender had been awarded irregularly.
“In this regard, disciplinary steps are currently under way against several City officials who are implicated. Our multiparty coalition government is determined to fight corruption and to keep our original promise to run a clean, effective and corruption-free administration,” Brink said.
Sodi has been linked to various failed projects. He is currently also facing a criminal case linked to a botched Free State asbestos tender.
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