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Johannesburg - The Pikitup board is probing the awarding of a tender to Yellow Plant Aqua, which is reportedly implicated in a forensic investigation, the company said on Tuesday.
"The board will take further action that is necessary to ensure that it promotes compliance with the Municipal Finance Management Act and relevant regulatory frameworks," it said in a statement.
"The board has... resolved to institute an independent legal review of the process and the awarding of the Yellow Plant Aqua tender."
The Star newspaper published articles about alleged wrongdoing, irregular activities, and tender collusion within Pikitup based on a forensic audit by Ernst & Young.
Pikitup managing director Amanda Nair reportedly awarded a R263m tender to Aqua Transport Plant Hire after the company was implicated in fraud in the forensic audit and despite the bid adjudication committee questioning her decision.
She had also reportedly spent R228 000 of ratepayers’ money on an advertorial to criticise stories written about her in The Star.
According to the newspaper, Nair had tried to prevent journalists from writing about the incriminating forensic report.
The Pikitup board on Tuesday urged anyone with information relating to the awarding of the tender to forward it to the company.
