Tshwane Targets Company Blacklisting Amid R26 Billion Asset Concerns

The City of Tshwane is moving to blacklist at least eight companies implicated in irregular and wasteful expenditure tied to a staggering R26 billion in assets under construction. Mayor Nasiphi Moya made the announcement during her recent State of the Capital Address, highlighting a growing concern over incomplete projects and poor service delivery across the metro.

The companies flagged for blacklisting have been linked to underperformance on key infrastructure projects — a situation that has drawn the attention of the Auditor-General. Mayor Moya explained that the city is currently in the midst of a formal process to restrict these suppliers from doing further business with the municipality.

“What you will find in the process of blacklisting is a back-and-forth process between the city and the companies,” said Moya. “We don’t want to assume that these eight companies will be successfully restricted until the process is done.”

According to Moya, the blacklisting process includes giving companies a chance to respond to the city’s findings. In some cases, delays in project completion may be linked to the city’s own failures, such as late payments, she admitted.

Despite this, the city remains firm in its stance to ensure accountability.

Thorough Process Before Termination

Before any company is officially blacklisted, the City of Tshwane follows a stringent internal process. This includes presenting evidence to the Bid Adjudication Committee (BAC) to justify contract termination based on poor performance.

“The termination process goes to our Bid Adjudication Committee,” Moya said. “Once it’s determined that the company failed to deliver as promised, we move forward with restricting them.”

These restrictions, once confirmed, are submitted to the National Treasury for final blacklisting. However, National Treasury does not blacklist suppliers directly; it reviews whether the city followed correct procedures.

Notorious Delays and Wasted Resources

Mayor Moya referenced several concerning examples of failed projects — including a R125 million sewer installation in Marokolong, Hammanskraal, awarded in 2011 but still incomplete.

“We were writing off that project as wasteful expenditure and that community still doesn’t have a functioning sewer,” said Moya. “That company is also on the list.”

The city has also attempted to blacklist companies linked to businessman Edwin Sodi, particularly over the failed Rooiwal wastewater treatment project. That submission, however, was initially rejected by National Treasury due to procedural errors, such as incorrect notification processes. The city has since corrected the submission and is awaiting Treasury’s final decision.

Fixing the City’s Financial Drain

The R26 billion in assets under construction represents a significant portion of Tshwane’s capital expenditure. These unfinished or delayed projects not only affect service delivery but also reflect poor project oversight and mismanagement.

“What has been raised by the AG is that we must start dealing with assets under construction,” Moya said. “Some of these companies said they could deliver — but clearly, they couldn’t.”

The City of Tshwane’s decision to pursue blacklisting is part of a broader commitment to rebuild trust in public procurement and ensure that only capable, reliable contractors are awarded work in the future.

As the process continues, Mayor Moya has promised transparency and due diligence, while reinforcing the city’s commitment to addressing irregular expenditure and ensuring value for money.

{Source: IOL}

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