The Hawks’ Serious Corruption Investigation unit in Bloemfontein conducted a raid at the Free State Department of Sport, Arts, Culture and Recreation amid allegations of tender fraud and corruption regarding this year’s Mangaung African Cultural Festival (Macufe). The elite crime fighting wing raided the department’s offices in Bloemfontein on 14 November.
“A search and seizure operation was conducted by the Bloemfontein Hawks’ Serious Corruption Investigation unit based on information of irregular tenders awarded. One of the 2022 applicants took the department to court, where Judge Phillip Loubser ruled that the tender awarded to C Squared, a communications and events agency based in Bloemfontein, was the result of a process that was not fair, equitable and competitive,” said Lt. Col Philani Nkwalase, spokesperson for the Hawks.
According to the elite police unit, the investigation was prompted by the Free State High Court’s ruling in a matter brought forward by DS Consortium against MEC Limakatso Mahasa, the department, and C Squared.
The matter related to the apparent fraudulent awarding of the multimillion rand tender to C Squared to organise this year’s Macufe, held from 26 September to 9 October at the Old Greys Club. It emerged that the hosting of all of the festival’s events at a single venue was contrary to the tender specifications.
It was revealed that C Squared’s bid had been R16 849 863 and DS Consortium’s R22 960 962. The latter stated that the only conceivable reason C Squared could have priced its bid competitively was because multiple events would be hosted at Old Greys – allowing the bid to be lowered significantly.
DS Consortium challenged the legality of the tender, arguing the process was fraught with irregularities. Judge Phillip Loubser passed judgement with costs in favour of the aggrieved DS Consortium, which interdicted the department, C Squared, and Mahasa.
Subsequently, a case of fraud and corruption was opened at the Mondeor police station in Johannesburg regarding alleged corruption in the procurement of the Macufe tender.
“A criminal case was opened on the alleged irregularities and is currently under investigation. More information will be released after the investigation is concluded,” said Nkwalase.
Details pertaining to the criminal case are sub judice.
According to informed sources, the case relates to the alleged pre-payment of over R14 million to the successful bidder, deemed a breach of the Public Finance Management Act and the relevant regulations, as well as specific terms of the tender.
The C Squared group lost its appeal to have judgement overturned against itself, the department and the MEC.
