2010/04/30
ALLEGATIONS of corruption linked to the 2010 Fifa World Cup have rocked the Eastern Cape weeks before the global showpiece kicks off.
Investigations by Dispatch reporters on behalf of the Institute for Security Studies (ISS) have been included in a book called Player and Referee, released in Cape Town yesterday. I worked with former reporter Gcina Ntsaluba on the project for several months earlier this year.
Following an embargo imposed by the ISS until today, we can now reveal:
l Concerns have been raised over an advertising contract awarded by the Eastern Cape Tourism Board (ECTB);
l Questions are being asked about a deal to upgrade Buffalo City’s former Absa Stadium; and
l Further suspicion of corruption has emerged over the construction of Mthatha’s soccer stadium.
ISS researcher Collette Schulz Herzenberg, who edited the book, described the chapter dealing with tender irregularities in the Eastern Cape as:
“Fascinating material alluding to irregularities in the allocation of advertising and branding contracts by the ECTB, the suspension of a whistle-blower, and accusations of favouritism by losing bidders for a contract awarded by Buffalo City Municipality in East London for the upgrade of the Absa Stadium.
“In addition, they (the authors) explore controversy and allegations of bribery surrounding the construction of Mthatha’s stadium, which the King Sabata Dalindyebo Municipality hoped could be used as a base camp or training field by World Cup teams.”
Initially, the focus of the investigation centred on the R2billion Nelson Mandela Bay Stadium in Port Elizabeth, but before long the paper trail led to East London and Mthatha.
A leaked document, which included minutes of an ECTB adjudication committee, outlined various allegations about maladministration and mismanagement within the institution.
According to minutes of a meeting by the tender evaluation committee on December 2, 2008, in the ECTB boardroom, Hip Hop Media scored the highest points for the “branding contract” tender.
The committee concluded that all tenders were “fairly evaluated without bias or favour”. However, Boomtown, another advertising company, was awarded the tender despite ranking third in terms of its points score.
A source at ECTB claimed chief executive Zola Tshefu arranged for a special advertising pitch following the December 2 meeting. It was also alleged that, during this meeting, Tshefu declared her relationship with two Port Elizabeth-based agencies – Dumisa Media and Boomtown – but did not recuse herself.
Tshefu later said there was no need for her to recuse herself.
A similar pattern characterised a second tender process when, on November 19, 2008, the evaluation committee met to consider a tender for an advertising agency.
Hip Hop Media again scored the highest points but Dumisa Media, which came in sixth, was awarded the tender.
This resulted in an April 2009 letter to Tshefu by attorney Nico du Plessis of the East London- based firm Velile Tinto & Associates, which represented Hip Hop Media.
Du Plessis requested access to the ECTB reports which led to the awarding of the tender – but later said the matter was settled when the board awarded Hip Hop Media a side service tender.
Tshefu denied any irregularities in the awarding of the advertising tender. She admitted, however, that the “ECTB is … involved in a dispute with one of the parties, who were appointed in terms of the tender.”
A day after being contacted, Tshefu suspended, with immediate effect, the ECTB human resources manager Noel van Wyk, allegedly for speaking to a third party.
After months under suspension Van Wyk later resigned.
Boomtown business director Luvuyo Bangazi said he was unaware of any irregularities.
l The full report can be read on the ISS Corruption and Governance Programme website at www.ipocafrica.org. - By Eddie Botha
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