The Special Tribunal has ordered Easyway Tarmac Pave and Projects CC to repay R68.8 million earned from an unlawful tender awarded by the Mogalakwena Local Municipality. The company was contracted for a R167.9 million project involving the supply, delivery, installation, and construction of borehole developments, storage reservoirs, and bulk gravity supply pipelines.
The tribunal ruled the contract unconstitutional, unlawful, and invalid following an application by the Special Investigating Unit (SIU). The SIU accused Easyway of fraudulently misrepresenting its qualifications and previous projects to secure the tender.
The tribunal upheld the SIU’s findings that Easyway deliberately provided false information in its bid documents. The company claimed to have completed three projects, each valued over R50 million for various municipalities. However, the SIU investigation, supported by affidavits from municipal managers, disproved these claims. Notably, Easyway inflated one project’s value from R6.1 million to over R50.8 million and even claimed a project that did not exist.
The SIU stated that Easyway would not have met the minimum points required to qualify for the tender without making these false claims. Additionally, the company’s contractor grading legally disqualified it from undertaking a contract of this magnitude.
The evaluation process employed by the municipality was also criticized. The SIU found it unfair and non-transparent, as the Bid Evaluation Committee failed to score bids according to its own specifications and could not justify the omission of a higher-scoring bidder.
In accordance with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority for further action.