Tribunal Orders Contractor to Repay R68.8m in Mogalakwena Tender Scandal

The Special Tribunal has ruled that Easyway Tarmac Pave and Projects CC, a construction company contracted by the Mogalakwena Local Municipality, must repay R68.8 million after securing a multimillion-rand tender through fraudulent misrepresentation.

The tribunal’s decision comes after an application by the Special Investigating Unit (SIU), which uncovered widespread irregularities in the awarding of a R167.9 million contract for water infrastructure projects in Limpopo.

Fraudulent Tender Practices

The unlawful contract involved the supply, delivery, installation, and construction of borehole developments, storage reservoirs, and bulk gravity supply pipelines.

According to the SIU, Easyway Tarmac Pave misrepresented its contractor grading and falsified project records to convince the municipality that it was qualified for the contract.

“The Tribunal upheld the SIU’s evidence that Easyway deliberately lied in its bid documents. The company claimed to have completed three projects, each valued at over R50 million, for various municipalities. The SIU investigation, supported by affidavits from municipal managers, proved these claims were false,” the unit stated.

Among the false claims:

• The company inflated the value of a R6.1 million project, reporting it as worth R50.8 million.

• It listed a project that never existed, fabricating records to improve its scoring.

The SIU said Easyway would never have met the minimum qualification threshold without these lies.

Municipality’s Evaluation Failures

The investigation also revealed failures by the municipality’s Bid Evaluation Committee (BEC), which was responsible for assessing and scoring tenders.

“The evaluation process was found to be unfair and non-transparent, as it failed to score bids according to its own specifications and could not justify why a higher-scoring bidder was overlooked,” the SIU noted.

These procedural lapses allowed Easyway to secure the contract despite being legally disqualified from handling a project of such high value under South African procurement rules.

Tribunal’s Ruling and Repayment

The Special Tribunal declared the contract unconstitutional, unlawful, and invalid, ordering Easyway Tarmac Pave to repay R68.8 million earned through the tainted deal.

The ruling underscores the tribunal’s role in enforcing accountability under the Special Investigating Units and Special Tribunals Act 74 of 1996, which allows it to recover public funds lost to corruption, maladministration, or procurement fraud.

Possible Criminal Charges

The SIU confirmed that any evidence of criminal conduct uncovered during its investigation will be referred to the National Prosecuting Authority (NPA) for further action.

This could see fraud, corruption, or misrepresentation charges being brought against company directors, municipal officials, or others implicated in the tender process.

Broader Context: Tackling Procurement Corruption

The case is the latest in a series of rulings targeting corruption and mismanagement in local municipalities, where infrastructure tenders have often been plagued by inflated prices, irregular grading, and false claims of capacity.

For communities such as those in Mogalakwena, the scandal highlights how corruption undermines service delivery in water supply, sanitation, and infrastructure, leaving residents vulnerable despite massive state spending.

The SIU said the judgment should serve as a deterrent to companies and municipal officials tempted to manipulate procurement systems for personal gain.