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Projects|Service|supply-chain|Operations
Projects|Service|supply-chain|Operations
projects|service|supply chain|operations

Cape Town to tighten procurement process in effort to combat extortion

Image of Table Mountain, Cape Town

Photo by Rebecca Campbell

12th April 2024

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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The City of Cape Town (CoCT) says the yearly review of its Supply Chain Management Policy proposes additional measures to reduce the risk of extortion impacting city projects.

The proposed Supply Chain Management Policy Amendments are out for public comment until May 10.

“Robust internal control interventions are proposed to reduce the impact of extortion on city projects,” says CoCT Finance MMC Siseko Mbandezi.

This includes placing any individual assessed as high risk on the city’s Red List, as well as revoking awarded contracts, including those that are linked via subcontracting to a high-risk main tenderer.

“Making things as hard as possible for extortionists and criminals is a focus across city operations,” says Mbandezi.

“Extortion is a highly organised, lucrative criminal enterprise and the most vulnerable communities are impacted the most as service delivery suffers.”

Extortionists, under some conditions also called the construction mafia, will typically hold project development at ransom for payment or for a share of the work.

Mbandezi describes the current policy as “stable and legislatively compliant, and a critical driver of the city’s successful procurement demand plan”, with a 97% tender completion rate in 2022/23, and 95% of tenders completed as at March 31, this year.

The proposed amendments to the policy are available at city libraries, subcouncil offices, and online at www.capetown.gov.za/haveyoursay.

Cape Town Mayor Geordin Hill-Lewis last year launched an anti-extortion campaign under the slogan Enough! Genoeg! Kwanele!

The city has also set up a 24-hour toll-free hotline, with cash rewards on offer for tip-offs leading to the arrest and prosecution of any guilty parties.

 

Edited by Creamer Media Reporter

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