Concerns were raised at a recent eThekwini Municipality council meeting after R820 million was disbursed in public tender awards for June 2025.
In a report presented by the eThekwini Finance Committee, concerns were expressed on the increased utilisation of Section 36 awards of the Supply Chain Management (SCM) Regulations for June.
The municipality stated that there were plans in place to reduce these appointments by having a panel of service providers for unforeseen circumstances and catastrophic events.
The report also noted that some councillors raised concerns that the percentage of tenders awarded to youth, disabled, and women-owned businesses was low for June.
The municipality stated that interventions were being made through data analysis and procurement planning to ensure that all categories were represented.
The report stated that there were improvements, with further interventions to be implemented in the 2025/26 financial year.
At a council meeting, councillors noted that where information is available for wards and registration numbers, it is included in the report, as information used to compile the report is taken from submissions made by the units.
Councillors were also informed that the city manager reserves the right to investigate the awards to take disciplinary, criminal, and recovery actions where wilful and negligent violations of SCM policies and Municipal Finance Management Act provisions are observed.
Zwakele Mncwango, ActionSA KwaZulu-Natal leader, stated at the council meeting that he was concerned that the Section 36 SCM awards process was being abused.
“There is an increase in this process even in cases where it cannot be justified why the normal procedure was not followed. The accounting officer must explain the rationale and how, in the future, we must avoid the abuse of Section 36. More attention needs to be paid to this process,” he said.
Sithembiso Mzimela, ANC and eThekwini Ward 40 councillor, described the report as transparent and provided accountability on the tender award details at the finance committee.
Mzimela said he saw nothing wrong with the report presented.
He said one of the Section 36 awards was for an emergency at the Kennedy Road Informal Settlement in June. Part of the settlement was destroyed by a fire, which left over 150 residents destitute and two people dead.
“We had to act on this emergency. There is also accountability of the process because the city manager reserves the right to investigate the award process,” Mzimela said.
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