Fraud: An Unknown Company Won R81m Contract To Supply Eastern Cape Buses


Reports have it that an unknown company in the Eastern Cape was awarded the contract of supplying Mayibuye buses even though it failed to meet up to the contract’s basic requirements and was also said to have just registered few months before the contract was awarded.

According to report from Dispatch Live  Patuxolo Nodada’s Siga Capital Asset Finance and Lease Solutions was disqualified from the Eastern Cape’s Mayibuye Transport Corporation (MTC)’s bus contract because its tender didn’t meet the evaluation committee’s standard for a bus chassis.

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The committee then recommended that Ronnies Motors be given the entire contract to supply all 50 buses, but despite the decision by the evaluation committee, the board awarded Nodada’s company an R81-million tender to supply 40 buses and Ronnies was instead given a deal to supply 10, for R19-million.

The Siga Capital which was competing with Ronnies Motors for the tender, was disqualified on the base that it had no proper offices;No landline office number and Nodada is contacted via his cellphone; The contact numbers provided to MTC in an invoice are invalid/private home lines; and an address registered to the company is that of a house in an affluent Kyalami Estate in Johannesburg.

“Ronnies was the only bidder to be considered against functionality. They scored 64.5 points therefore qualified for stage 3,” wrote Janice Ewers, who chaired the meeting and wrote the minutes.

The board’s actions shocked many especially a number of senior managers and board members, who maintained that Ronnies was always the favored company.

Aside not being able to fulfill the required demand on the tender, it was also revealed that Nodada’s Siga Capital had no experience in the leasing business. Not only that, the company charged R2039460 per bus while Ronnies was asking for R1906650 per bus.

Nodada delivered only one bus before the service’s launch in December and had delivered another 20 by 24 December, but half of them didn’t have the right branding and others didn’t have the right gearboxes. He still owes MTC 19 more buses.

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