Fin24

Waste tender elicits strong reaction

2011-11-20 13:16

Pretoria. – The countrywide waste management industry is in an uproar because the Tshwane Metro Council is considering a R2bn Korean 30-year tender for the conversion of methane gas into energy.

The Institute of Waste Management of Southern Africa (IWMSA), with its 914 members, took Tshwane to task in September in an angry letter responding to a notification that the Metro Council wanted to put aside normal tender procedures and consider the tender from the Sudokwon SLC consortium.

The members are threatening legal action if Tshwane goes ahead with its plans.

In the notification Tshwane justifies its action by saying that the Korean bid is apparently particularly advantageous, has exceptional cost benefits, and the is a “uniquely innovative concept”.

This service is apparently being offered to the city at no cost.

Councillor Adriana Randall, DA spokesperson for finance, said her party was also concerned about the tender. She said it had so far not been presented to the council, but when council members officially had sight of it the die would have been cast.

She said that the tender, about which officials in the council's department of waste management had seemingly not been consulted, involved the Koreans "harvesting" methane gas from dump sites for conversion into energy, which would be passed on to the electricity grid for compensation.

She said that Ekurhuleni, eThekwini and Johannesburg had similar plants provided and operated by local suppliers. It was therefore not clear why the Korean offer was regarded as unique.

She said that by supporting local suppliers Tshwane could make a contribution to job creation and skills development.

Sam Jewaskiewitz, president of the IWMSA, and various other business people in the waste management industry have cast doubt on the statement that the service would cost the council nothing. “Nothing is free,” said one who wished to remain anonymous as he regularly worked with the Metro Council.

Jewaskiewitz said by accepting the tender the Metro Council could sign away a future possible source of income for the city derived from the sale of electricity and carbon credits.

He said it was impossible to judge whether the Korean offer was fair in terms of the 30-year period or its financial aspects, as Tshwane's notification had been vague and meaningless.

Comments had been requested, but it was impossible to comment meaningfully without further details, he said.

The IWMSA asked that the notice, which deviates totally from prescribed tender procedures, be withdrawn and for the council to follow formal tender procedures.

Jewaskiewitz said that the council's recent response had been to thank him for his letter and to say that he would be consulted if more information was required.

Sake24 understands that five or six companies have objected to the tender. At least one has been told to bring a counter-proposal within seven days.

That is hopelessly too little time and, again, a deviation from prescribed procedure.

Tshwane did not respond to Sake24’s questions on the issue. Sake24 wanted to know, among other things, the names of members of the consortium. The Metro Council had however remained silent.

Jewaskiewitz said Sudokwon was well known for its large plants outside Seoul, the capital of South Korea. “It is a big plant but it does not have unique technology,” he said.

IWMSA members have already erected and operated several such plants in South Africa and other countries.

Jewaskiewitz said there was still no indication that Tshwane would renounce its intentions, and that some IWMSA members had resolved to fight acceptance of the tender in court.

Comments
  • 100003071836622 - 2011-11-20 13:42

    The biggest enemy of this country is actually its own people. One has to only read halfway through this news report to know that some official is getting Millions under the table once again. Anybody appointed in government or a council is given a free pass to steal us blind and it is lawful! There hasn't yet been one case in this country where a corrupt official has served a full term in jail. One wonders how irresponsible people like our officials even have the nerve to go sit at the UN and pretend we know how to govern, let alone decide the fate of other nations.

  • vegetarian - 2011-11-20 13:57

    Where is corruption in this? Don't jump to outrageous conclusions.

      Stir Monger - 2011-11-20 14:06

      If things are not done properly then you have to expect rats in the cupboard. Is it too difficult to follow the rules? The stink (pun intended) is growing.

      lydonmcg - 2011-11-20 14:08

      Not following correct tender procedures for starters. Have you even read the article?

  • Woofix - 2011-11-20 13:59

    @ long nr. alias Vusi: Yes acree so much. Also my first thought was how much does it cost to bribe these officials??

      100003071836622 - 2011-11-20 14:04

      Exactly Woofix. This already smells of a bribe!

      Sedick - 2011-11-20 14:15

      I agree. The Korean offer is unique in that it will allow for substantial enrichment of Tshwane council members. They will then also become directors of the Korean Company in South Africa....

      100003071836622 - 2011-11-20 14:26

      @Sedick. LOL LOL....that is a very positive attitude to have in these dark days of ours. You have a point though. First the salesman at the Mercedes dealership will earn commission, then the dealership on the car and then Menlyn Shopping Mall will have a substantial increase in turnover when all the luxury goods are purchased. So you are right, it isn't bad news all the way.

  • Khoisan - 2011-11-20 15:09

    As usual, the report is sensationalist without the required insight to report objectively. It is clear to me that this news outlet must keep up at all costs to "expose" these things, even if it means showing their own lack of an understanding that such proposals are legal and acceptable. I saw the notice and it clearly states that the proposal from the Korean company is classed as an "unsolicited bid", which allows suppliers from anywhere in the world to submit "proposals" to any organ of state. This happens in the absence of a “tender” being called for a specific supply. What happened here, was that as usual, SA suppliers were caught napping. And by the way, this regulation was inherited from the old South Africa and is nothing new. One would appreciate this news outlet not only endeavouring to educate itself, but also that of its readers. The fact that a notice of this proposal was published shows that the municipality are doing what is required by law. This association and its members should've done the same. From 7 December 2011, the laws around tendering changes and the focus will shift on “buying local”.

      100003074312828 - 2011-11-20 15:51

      And by the way, this regulation was inherited from the old South Africa and is nothing new-My friend, 1)You are justifying a very bad procument practice on grounds that the aprtheid regime used it?.In fact knowiung that this was the practice of the old regime we should have been more sceptical. 2)The legality of unsolicited bids is not in question, but what we are saying is that unsolicited bids is a conduit for corruption. Why, It is possible that a goverment entity can stop advertising tenders and procure through unsolicited bids, if i understand you corrrectly. If that is possible I think you will agree that while it unsolicited bids are accetable under the current procument rule, it is in fact a very bad rule that need to change. 3) educate e here, is it the case that unsolicited bids should be accepted as such? I want to belive that there stiil need a showing that nobody can do it better

  • 100003074312828 - 2011-11-20 15:10

    You would have thought that roux shanangu's deals were the last we will hear about. No the plandering of SA continue. This is exepcted whenever you have leadership vacuum. With no thear of punishment people are not afarid to mortgage the country for 30 years in order to enreach themselves. The poor and the salaried employees whose payroll taxes are funding all these adventures are helpless.A very dark cloud is hanging over South Africa, and is about to rain

  • Khoisan - 2011-11-20 15:31

    Can I post as Khoisan Now?

  • 100001989663424 - 2011-11-20 17:52

    Someone is getting a nice kickback. Here we are trying to create jobs and they want to give it to the Koreans. Shocking!!!!!!!!!!!!!!

  • Blikskottel - 2011-11-21 08:08

    There is only one thing that could make the counmcil decide this: There personal pockets are being greased bigtime, but they will still realize that Kimchi is not for everyones taste.

  • pages:
  • 1