Power cut at Centlec, as judge declares tender irregular

Judge Daffue delivered a bloody blow to power utility, Centlec SOC LTD.

This followed an application brought by Defensor Electronic Security (PTY) LTD after the power utility awarded a security tender to Ignite Security for 3 years and despite Ignite having had failed to submit mandatory MBD 3.3 form.

According to the court order Defensor argued Centlec awarded a tender to Ignite after the expiry of the validity period and without prior request for extension and approval of all relevant bidders.
The tender validity period expired on 2 March 2021, and although Centlec relied on letters it sent to both Defensor and Ignite on 1 March 2021, a day before there expiry date there is no proof that the request for extension was communicated to the bidders prior to the expiry and that bidders consented to extension of the period prior to the expiry thereof.

Defensor proved that the request for an extension was only sent by email as late as 23 March 2021.
Defensor also argued the absence of Annexure E which is used to calculate point scoring for bidders which makes the whole process irregular as per PPPFA provisions s (2)(f)(1) and s 217(1) of the constitution dealing with requirements for lawful procurements of goods and services “fair, equitable, transparent and cost-effective”.

This implied calculations to be done pertaining to pricing should be done based on the total price over the full period of the contract that was three years.

What is shocking is the fact that the Centlec Chief Executive Officer, Malefane Sekoboto assumed that he had discretion in awarding the tender.

Contrary to his belief he could not simply select one of the four so-called “appointable” bidders forwarded to him by the Bid Adjudicating Committee (BAG).

What is also concerning is why Centlec did not disqualify Ignite for failure to submit MBD3.3 which was mandatory during the evaluation process.

In delivering judgement judge Daffue ordered:

1. The decision of Centlec SOC PTY to award Tender CD37/2020: Provision of Security Services (guarding, armed reaction/response) including Supply, Delivery, Installation, Commissioning and Maintenance of Security Equipment (“the Tender”) to Ignite Security, is declared constitutionally invalid, reviewed and set aside;
2. The service level agreement concluded between Centlec SOC PTY and Ignite Security pursuant to the tender award in favour of Ignite Security is set aside;
3. Centlec SOC PTY is directed to forthwith initiate a new bidding process and to invite all interested persons to tender for Provision of Security Services (guarding, armed reaction/response) including Supply, Delivery, Installation, Commissioning and Maintenance of Security Equipment with a bid closing date not later than 31 January 2022.

Its not clear as yet how much has Centlec paid to Ignite this far and whether anyone has been held accountable for this mess.

It’s not the first time bid documents go missing after tenders are awarded, bid documents went missing at the Department of Sports, Arts, Culture and Recreation after the statue tender was awarded and to date, no one has been held accountable.

Still with Sport, Arts, Culture and Recreation, this year marks 4 years with one company on month-to-month contract. Thabure SEC has been on month-to-month contract with SARC since 2018 and no one cares.

Both Defensor and Ignite could not be reached for comment.

Lele Mamatu, Centlec SOC LTD spokesperson said the management still have to study the judgement before they comment.

This is a developing story.