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VERMAAK REPORT: Preliminary Investigation Uncovers Irregularities in Swellendam Municipality’s Tender Processes

Written by Mickey Mentz

The investigation into the Swellendam Municipality’s procurement procedures has unveiled extensive irregularities, suggesting systemic corruption and significant mismanagement of public funds.

The report, authored by Advocate Etienne Vermaak, scrutinised six tenders in the engineering and IT sectors, revealing an alleged pattern of favouritism, procedural violations, and potential criminal conduct among senior officials.

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Allegations of Favouritism and Procedural Misconduct

The investigation identified instances where certain companies received preferential treatment during the tender process. Some firms were unfairly disqualified, while others benefited from inside information.

Notably, bid scores were allegedly altered post-submission to favour specific companies, undermining the integrity of the procurement process. In one case, a tender was inexplicably canceled and re-advertised, allowing different companies to bid under altered conditions.

Conflict of Interest and Identity Fraud

According to Vermaak’s report a significant conflict of interest was uncovered involving a father and son duo, Francois and Jacques Ryke. The son, employed by an engineering firm receiving municipal tenders, is the offspring of the father, who advises the municipality on awarding these tenders.

Allegations include the son signing into tender briefings under a false name, further complicating the ethical landscape.

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Unauthorised Contract Extensions and Financial Mismanagement

The report highlights that certain companies had their contracts extended for several years without undergoing a new public bidding process, even when their tax compliance was questionable. According to Vermaak’s report this practice led to unauthorised and irregular expenditures, with millions of rands potentially wasted due to these procurement malpractices.

Recommendations and Potential Legal Ramifications

Advocate Vermaak’s report recommends a comprehensive forensic investigation into the municipality’s procurement practices, including an examination of computer systems and records. The report suggests that criminal charges be considered against senior officials, including Municipal Manager Anneleen Vorster and the Supply Chain Manager, for their roles in these alleged transgressions.

Political Turmoil and Calls for Accountability

The findings have intensified political tensions within the Swellendam Municipality. The GOOD Party’s Secretary-General, Brett Herron, stated, “The investigative report provides crucial context to the dramatic suspension and reinstatement of the Southern Cape town’s Municipal Manager Anneleen Vorster late last year, as well as the recent ousting of the DA Mayor Francois du Rand in a motion of no confidence brought by the ANC and supported by the FF+.”

In response, the Democratic Alliance (DA) in the Western Cape has expressed support for lawful investigations to address the allegations. DA provincial leader Tertuis Simmers told EWN, “Given that they tend to tarnish our party’s name, whatever such an independent investigation delivers, our party believes in the rule of law and the due process will need to follow.”

As the investigation progresses, there is a growing demand from the public and political entities for transparency, accountability, and a thorough overhaul of the municipality’s procurement processes to restore trust and ensure the responsible management of public funds.

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About the author

Mickey Mentz

From my Barrydale base, my goal is to tell the stories of people and places on the picturesque R62. Ek het oor die jare 'n cappuccino verslawing ontwikkel en my honde se name is Bella, Obi en Jasper.

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