The Speaker – eThekwini Council
Councillor James Nxumalo
12 November 2009
Dear Mr Speaker
QUESTION IN TERMS OF SECTION 17 OF THE RULES OF ORDER
During the last questions on the issue of the R6.5 million fifaworldcup.durban.gov.za information portal at the July 2009 council meeting, Cllr Peer answered in respect of the first question that “in May 2008 the Municipality advertised for the appointment of a panel of consultants to assist the information services section to deliver on its various projects. From this panel, a quote system was used to obtain services for various projects, including the preparation of a new website.”
In respect of the provisions of the eThekwini Supply Chain Management Policy:
1. Can it be confirmed that the “quote system” mentioned above refers to the procedures outlined in sections 16-18 relating to procurement through quotations; and
1a. if not, which legal provisions were utilised to select and appoint the service provider?
17 (a) makes a mandatory provision requiring that “quotations must be obtained in writing from at least three different providers whose names appear on the list of accredited prospective providers of the municipality” and 17 (b) allows for quotations to be “obtained from providers not listed, provided that such providers meet the listing”.
2. If the quote system was used, were quotations received from at least three different providers as required in 17 (a); and
2a. if so, can a report be provided in terms of the records required by 17(d) showing all the “potential providers and their written quotations”?
2b. if not, in terms of 17(c) what were the reasons approved by the chief financial officer for not securing the required three quotations?
18 (a) stipulates that all requirements in excess of R30000 are “advertised for at least seven days on the website and an official notice board of the municipality”.
2c. was the required advertising as described above done in respect of this project?
18 (b) requires that “when using the list of accredited prospective providers the accounting officer must promote ongoing competition amongst providers by inviting providers to submit quotations on a rotation basis”
2d. what were the reasons for using the same provider of web development services used by the City previously instead of rotating as required above?
19 (1) requires that for “goods and services above a transaction value of R200 000 (VAT included) and long term contracts may only be procured through a competitive bidding process”
3. If the quote system was indeed used, then considering the mandatory provision outlined above, why was the quote system used to select the service provider for a project with a value of R6.5 million?
4. Was the scope of work upon which bidding companies prepared their quotation formally defined; and
4a. if so, then can the original scope documentation be provided to me?
4b. if not, why not?
Councillor Warwick Chapman