A Special Tribunal has set aside a R25 million tender awarded during the COVID-19 state of disaster for wastewater services in Ditsobotla Local Municipality. The ruling requires Rensh Close Corporation to repay all funds received.
The Special Tribunal reviewed and set aside the contract for services at four wastewater treatment works. It found the award irregular because the municipality contacted Rensh Close Corporation by phone for a quotation without an initial tender or written contract.
Days after the disaster declaration, the municipality prepared a memorandum appointing the company for emergency repairs and cited deviation from competitive processes due to the pandemic. The Special Tribunal heard that the municipality had already tendered for the same services months before the COVID-19 pandemic.
Rensh Close Corporation, owned by Rashida Cader, must repay all monies including profits to the municipality within 15 days. The Special Investigating Unit welcomed the judgment, which also holds Cader personally liable for the municipality’s losses.