Tender dispute brewing at S.A. gambling board
News on 13 Jul 2017
News on 13 Jul 2017
South Africa’s National Gambling Board is once again the subject of media attention as it prepares to offer a Rand 2.4 billion (over $200 million) eight-year gambling machine electronic monitoring tender.
The problem is…the NGB has no CEO or board of directors and is under the administrative stewardship of the government’s Department and Trade and Industry, represented by Caroline Kongwa, a chief director of legal services at the Department who was seconded by the Minister of Trade to sort out the National Gambling Board.
Our readers may recall that back in 2014 at the height of a corruption, maladministration and wasteful expenditure scandal in which the NGB was embroiled, the Minister dissolved the board and has not reconstituted it, instead bringing the organisation under the supervision of his Ministry.
The CEO of the NGB also decamped shortly before he was due to appear before a disciplinary hearing.
The lack of a board or CEO is cause for deep concern among potential bidders for the National Central Electronic Monitoring System, according to a report in the publication Business Day, and that could result in a legal challenge by bidders worried that the situation may prejudice the entire process.
Doubts have also been voiced on the authority of Kongwa to act as arbiter in the short listing or selection process, which currently centres on three bidders following the withdrawal by five other companies due to the board uncertainty.
Business Day reports seeing documents in which a complainant company communicated with the DTI, claiming that Kongwa’s appointment was irregular and without legal support. The communication suggested that in the event of litigation, a court ruling supporting its contention could derail the entire bidding process.
Since 2001 the monitoring system has been organised and operated by Bidvest through Zonke Monitoring Systems, which also collects the required tax revenue on behalf of the NGB.
The DTI’s position is that the Minister appointed Kongwa under the provisions of the Public Finance Management Act, which requires that “every public entity must have an authority which must be accountable for the purposes of the Act”.
The NGB has not thus far commented on the situation.
