Business / Local
Mat’land security companies cry foul over tenders
15 May 2016 at 14:34hrs | Views
SECURITY Companies in the Matabeleland region have taken a swipe at the State Procurement Board (SPB) for allegedly clandestinely and deliberately awarding tenders for the provision of security services at Government departments and parastatals in the region to Harare based firms.
A number of security companies in Bulawayo interviewed by Sunday Business expressed their dismay at the rate SPB was continuously overlooking firms from the Matabeleland region to offer security service provisions at Government departments and parastatals within their area of jurisdiction.
Nokel Security managing director Retired Colonel Kenneth Mhlophe said there was a need for the Government to intervene and arrest the "rot" and alleged underhand dealings at SPB before a number of security companies fold due to predetermined loss of business.
"We believe the tender process at SPB is grossly flawed. There is a big problem when it comes to awarding of tenders to offer security services at Government departments and parastatals, which are the only institutions where one is guaranteed of getting business at the moment and we seriously don't know how it can be rectified," Rtd Col Mhlophe said.
He said most of the companies that were awarded tenders to offer security services at the Government institutions were charging below the stipulated statutory rates.
"As we speak there is no southern region security company that was awarded a tender to safeguard Government and parastatal infrastructure in Matabeleland. The problem emanates from SPB which is responsible for awarding tenders and in most of the time it gives such tenders to those charging below statutory rates leaving those that charge the stipulated rates vulnerable and only win the tenders after having gone through the courts," said Rtd Col Mhlophe.
He said the acceptance of security companies charging below the stipulated statutory rates by SPB and other institutions has led to the sprouting of "fly by night" firms.
"There has been a rise of ‘brief case' companies, which are unregistered and obviously these don't pay taxes and definitely don't contribute anything to the country's fiscus. You also find that one company has won tenders to offer four or five Government departments or parastatals instead of the small cake being shared equally," said Rtd Col Mhlophe.
The managing director of Highway Security, Smile Dube, said there were a lot of irregularities at SPB that were threatening operations and survival of security companies.
"Everything starts with the SPB, we once went for a workshop in 2014, which was about clarification of tender processes and procedures and it was clearly stated that a company, which wins a tender was supposed to be there for one year but we have seen some going for up to four years offering security services at certain Government institutions," said Dube.
Affirmative Action Group president for the Matabeleland region Reginald Shoko said the policy advocating body has noted with concern the sidelining of Matabeleland region's security companies by SPB in awarding them tenders.
He said the security services sector remains one of the biggest employers following the closure of numerous companies mostly in Bulawayo as the effects of de-industrialisation took its toll over the last decade.
"Companies that are in the locality should be the ones that should be considered first or favoured when it comes to the awarding of tenders in line with the indigenous and empowerment policy. What is being done by SPB is unattainable and unwarranted. It smacks of corruption and nepotism because Harare companies are the ones that are only benefitting," Mr Shoko said.
A number of security companies in Bulawayo interviewed by Sunday Business expressed their dismay at the rate SPB was continuously overlooking firms from the Matabeleland region to offer security service provisions at Government departments and parastatals within their area of jurisdiction.
Nokel Security managing director Retired Colonel Kenneth Mhlophe said there was a need for the Government to intervene and arrest the "rot" and alleged underhand dealings at SPB before a number of security companies fold due to predetermined loss of business.
"We believe the tender process at SPB is grossly flawed. There is a big problem when it comes to awarding of tenders to offer security services at Government departments and parastatals, which are the only institutions where one is guaranteed of getting business at the moment and we seriously don't know how it can be rectified," Rtd Col Mhlophe said.
He said most of the companies that were awarded tenders to offer security services at the Government institutions were charging below the stipulated statutory rates.
"As we speak there is no southern region security company that was awarded a tender to safeguard Government and parastatal infrastructure in Matabeleland. The problem emanates from SPB which is responsible for awarding tenders and in most of the time it gives such tenders to those charging below statutory rates leaving those that charge the stipulated rates vulnerable and only win the tenders after having gone through the courts," said Rtd Col Mhlophe.
He said the acceptance of security companies charging below the stipulated statutory rates by SPB and other institutions has led to the sprouting of "fly by night" firms.
"There has been a rise of ‘brief case' companies, which are unregistered and obviously these don't pay taxes and definitely don't contribute anything to the country's fiscus. You also find that one company has won tenders to offer four or five Government departments or parastatals instead of the small cake being shared equally," said Rtd Col Mhlophe.
The managing director of Highway Security, Smile Dube, said there were a lot of irregularities at SPB that were threatening operations and survival of security companies.
"Everything starts with the SPB, we once went for a workshop in 2014, which was about clarification of tender processes and procedures and it was clearly stated that a company, which wins a tender was supposed to be there for one year but we have seen some going for up to four years offering security services at certain Government institutions," said Dube.
Affirmative Action Group president for the Matabeleland region Reginald Shoko said the policy advocating body has noted with concern the sidelining of Matabeleland region's security companies by SPB in awarding them tenders.
He said the security services sector remains one of the biggest employers following the closure of numerous companies mostly in Bulawayo as the effects of de-industrialisation took its toll over the last decade.
"Companies that are in the locality should be the ones that should be considered first or favoured when it comes to the awarding of tenders in line with the indigenous and empowerment policy. What is being done by SPB is unattainable and unwarranted. It smacks of corruption and nepotism because Harare companies are the ones that are only benefitting," Mr Shoko said.
Source - Sunday News