A Limpopo construction company, Easyway, Tarmac, Pave and Projects CC, has been ordered to pay back close to R69 million it earned through a “fraudulent contract” with the Mogalakwena Local Municipality.
According to the Special Investigative Unit (SIU) the Special Tribunal found that the company lied about its past projects and qualifications to win a R167.9 million tender for water infrastructure in 2018. The contract has been declared unlawful, and the money must be returned with interest.
This ruling comes after the SIU “successfully applied to review and set aside the award of the tender for the supply, delivery, installation, and/or construction of borehole development, storage reservoirs, and bulk gravity supply pipelines, which was awarded to Easyway in February 2018”.
“The Tribunal upheld the SIU’s evidence that Easyway deliberately lied in its bid documents. The company claimed to have completed three projects, each valued at over R50 million, for various municipalities,” the SIU said.
“The SIU investigation, supported by affidavits from municipal managers, proved these claims were false. In one instance, Easyway inflated the value of an actual project from R6.1 million to over R50.8 million. In another, Easyway claimed a project that never existed”.
The SIU added that its investigation also found that “Easyway would not have scored the minimum points required to qualify for the tender had it not made false claims”.
“Furthermore, the Tribunal held that Easyway’s contractor grading legally disqualified it from undertaking a contract of this value (R167.9m), which was approximately 29% above its permitted threshold”.
In his order, Judge BA Mashile noted how the community has been disadvantaged because the project had to be stopped.
“The award should not have been made in the first place, and no contract should have been concluded between the Municipality and Easyway,” stated Judge Mashile. By committing the fraud, Easyway has made its bed and must lie in it.
The Tribunal also ruled that Easyway must pay for the SIU’s legal costs for this application.
“The SIU is committed to ensuring that the Tribunal’s order is implemented and that public funds are recovered”.
“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action”.
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