amaBhungane: Fleet company that paid Malema fails to deliver on Joburg contract By Micah Reddy, Stefaans Brümmer and Sam Sole for amaBhungane
The city selected Afrirent in October last year to provide much of its vehicular service delivery backbone – without a competitive bid. The deviation from procedure came after an initial tender process was beset by delays and eventually cancelled.
On November 13 this year – just over a year into the contract – the city told us it had received 1,555 vehicles from Afrirent. This was still only 56% of the requirement. Approached for comment last month, an Absa spokesperson did not deny that the bank had declined a R1-billion mooted credit facility to Afrirent, but said: “We do not take financing decisions merely on the basis of newspaper articles.”
A legal opinion from April this year agreed with the decision to cancel the initial tender, but said the subsequent use of Regulation 32 was not the best option open to the city. The opinion was commissioned by the city’s forensic and investigations service. City records show that when Avis’s old contract was extended from November 2018 to January 2019 to allow time for Afrirent to bring in its vehicles, the city was to pay Avis R28.6-million a month to keep providing the same service.
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