Polokwane Mayor John Mpe says there is nothing wrong with awarding tenders to foreign-owned companies, as long as the law is followed, after claims linking a R56 million contract to the alleged Zimbabwean partner of city manager Thuso Nemugumoni.
This comes after widespread social media claims that Mpe and municipal manager Thuso Nemugumoni awarded a tender worth more than R56 million to a company allegedly linked to Nemugumoni’s Zimbabwean partner.
Speaking during a media briefing on Thursday at New Peter Mokaba Stadium, Mpe dismissed the allegations as baseless and politically motivated.
He stated that the companies in question have been doing business with the municipality since 2017, well before the current administration took office.
“We have noted with concern, contempt and disappointment the continued circulation of unfounded, malicious, and misleading allegations,” Mpe said.
“These claims attempt to falsely implicate me, and the city manager, Ms. Thuso Nemugumoni, in a purported R56 million tender irregularity.”
Mpe said the municipality rejects the claims as defamatory and part of a politically driven smear campaign.
“Once again, unverified platforms are being used as tools for orchestrated smear campaigns aimed at discrediting the leadership of the municipality,” he said.
“These attacks often resurface around politically significant periods and are clearly part of a broader agenda by individuals and factions who have lost democratic influence.”
He said the municipality currently does business with more than 100 companies and service providers across various sectors and questioned why only a few are being singled out.
“It is important to note that many of the companies listed in recent allegations were awarded contracts through lawful, competitive bidding processes prior to the appointment of both the current executive mayor and the city manager,” Mpe said.
He said companies such as Capotex Trading and Zerbacraft (Pty) Ltd, have had ongoing contractual relationships with the municipality dating back to 2017, 2018, and 2020.
Mpe said those companies also work with other municipalities and public institutions across the province and country without controversy.
He added that foreign-owned companies are not barred from doing business with the municipality.
“In terms of Section 217 of the Constitution of the Republic of South Africa, and as supported by the Preferential Procurement Policy Framework Act (Act 5 of 2000), all procurement by an organ of state must be fair, equitable, transparent, competitive, and cost-effective,” he said.
“The law does not prohibit foreign-owned companies from doing business with municipalities, provided they meet all legal and compliance requirements, including tax compliance and registration on the Central Supplier Database.”
He added that the participation of foreign nationals or foreign-owned entities in tenders is legal and aligned with South Africa’s open and competitive economy.
Meanwhile, opposition parties have called for an investigation into the allegations.
Economic Freedom Fighters (EFF) provincial chairperson Lawrence Mapoulo called on Limpopo Premier Dr. Phophi Ramathuba to appoint an ad hoc committee to investigate tender irregularities at the municipality.
In a media briefing on Friday, Mapoulo also called on Limpopo MEC for Cooperative Governance, Human Settlements and Traditional Affairs Basikopo Makamu to invoke Section 139 and place the municipality under administration.
“President Cyril Ramaphosa must also sign a proclamation to authorise the Special Investigating Unit (SIU) to investigate the allegations,” he said.
ActionSA spokesperson Tshepo Magoma said the party plans to open a corruption case against Mpe at the Polokwane South African Police Service station on Monday.
“ActionSA expresses deep disappointment regarding recent allegations of corruption and maladministration directed at the Polokwane Municipality and its leadership.”
“These claims undermine public trust and impede the delivery of effective services to Polokwane residents,” Magoma added.
Politics
