Fairg Holdings was awarded the contract even though the company \u201cdid not meet the RFQ [request for quotations] requirements\u201d and had \u201cprovided the [department] with false information in respect of the current and correct director details and in doing so has possibly committed fraud\u201d, according to the SIU\u2019s findings. <\/p>\n\n\n\n
The SIU recommended that the company be referred to the NPA for possible prosecution.<\/p>\n\n\n\n
AmaBhungane has obtained copies of several bid documents about further contracts awarded to companies either directly or indirectly linked to Mokoena, this time by Masakhane, which falls under the Special Projects unit at Gauteng Health.<\/p>\n\n\n\n
The documents include purchase requests, quotations and orders largely for plastic containers used to package frozen meals that Masakhane in turn supplies to six hospitals and 17 healthcare institutions across Gauteng.<\/p>\n\n\n\n
<\/div>\n\n\n\n
Undercover? <\/strong><\/strong><\/p>\n\n\n\nThe documents reveal that, at different times, different companies belonging to or linked to Mokoena through family and associates would apply for contracts at the same time in what could be interpreted as cover-quoting.<\/p>\n\n\n\n
Cover-quoting is when two or more companies collude to submit bids for the same contracts in order to ensure that a particular company is appointed. On the surface this can come across as genuine competition.<\/p>\n\n\n\n
The seven contracts evaluated by Amabhungane were all valued under the R500 000 threshold for public tenders and could instead be concluded using the request for quotation (RFQ) proces which is based on invitations to already accredited suppliers, further compounding the lack of competition.<\/p>\n\n\n\n
Although the contracts are relatively small in value, they reveal how the same alleged bid-rigging practices can be constantly recycled without detection, even in the seemingly most obvious cases.<\/p>\n\n\n\n
The earliest purchase requests reviewed by amaBhungane, which were also on the face of it the most obvious examples of possible collusion and cover-quoting, are from November 2019.<\/p>\n\n\n\n
The concurrent purchase requests were for the supply of computers \u2013 one contract for five laptops and a separate contract for 16 desktop computers.<\/p>\n\n\n\n
In both instances the same three companies responded, namely Mafahla Logistics and Projects, Bitbest Investment and Oneall Distributors.<\/p>\n\n\n\n
All three companies were owned by Mokoena and even though there was straightforward evidence of his involvement in at least two of the companies\u2019 application documents, this was somehow missed by the bid adjudication committee members.<\/p>\n\n\n\n
The contract for five laptops was awarded to Mafahla who submitted a R27 000 quote for the devices, which was significantly lower than the R63 750 quote put forward by Bitbest or the R65 000 quote from Oneall.<\/p>\n\n\n\n
Oneall was however awarded the contract to supply the 16 computers at a cost of R307 000. In this instance Mafahla\u2019s quote of R360 000 was the highest followed by Bitbest\u2019s R336 000.<\/p>\n\n\n\n
It\u2019s clear from the bidding documents submitted by Mafahla that the company is owned by Mokoena who is its sole director.<\/p>\n\n\n\n
It should however not have been hard to spot that Mokoena was at the same time tied at least one of the \u201ccompetitors\u201d, Oneall.<\/p>\n\n\n\n
Oneall\u2019s bid application is signed and submitted by Vukani Sibeko who identifies himself as a \u201cmember\u201d of the company.<\/p>\n\n\n\n
However, company registration information reveals that Mokoena was appointed as the sole director of Oneall in April 2019, six months before the RFQ was issued, replacing a man called Eric Mthai.<\/p>\n\n\n\n
The change in Oneall\u2019s directorship was however not updated in the company\u2019s profile on National Treasury\u2019s Central Supplier Database (CSD); Mthai was still listed as the director six months later.<\/p>\n\n\n\n
If that was not enough to demonstrate Mokoena\u2019s hand at play, the same email address Mokoena used in Mafahla\u2019s bid documents could also be found in Oneall\u2019s CSD profile.<\/p>\n\n\n\n
On the other hand, Bitbest\u2019s connection to Mokoena is a little harder to discern, or at least it was in 2019 when the computer contracts were awarded. Mokoena was appointed as the company\u2019s sole director long afterwards in November 2022 according to company registration records.<\/p>\n\n\n\n
At the time of the computer bidding, Tshepo Mei was correctly listed as the company\u2019s director on CSD.<\/p>\n\n\n\n
But even at that time serious inconsistencias could be found in the company\u2019s declaration document \u2013 inconsistencies that once again lead to Mokoena\u2019s door.<\/p>\n\n\n\n
All the returnable documents submitted by Bitbest appear to have been signed by Mei using his first name but other documents were supposedly filled in by a Joseph Seloane as a \u201cmember\u201d of the company while still using the same signature.<\/p>\n\n\n\n
Seloane told AmaBhungane that he was only an employee at Bitbest and claimed that he was responsible for filling in and signing the company\u2019s bid documents.<\/p>\n\n\n\n
More importantly, Seloane said that Mokoena, not him or Mei, has \u201calways been the owner\u201d of Bitbest but he would not be drawn to answer questions about why three of his boss\u2019 companies had submitted quotations for the same contracts.<\/p>\n\n\n\n
Amabhungane has found that Tshepo Mei, who was a 21-year-old at the time, is the son of Anastacia Mei who is a former director in two further companies that are now controlled by Mokoena.<\/p>\n\n\n\n
All of the above suggests that when these three companies bid for the same contracts Mokoena was the declared owner of one, the sole director of another and the seemingly undeclared owner of the third.<\/p>\n\n\n
\n
Containers <\/strong><\/strong><\/p>\n\n\n\nMore recent contracts studied by amaBhungane, where the possible collusion was less transparent, still typically involved one company owned by Mokoena bidding against supposedly independent rivals that had links to Mokoena either through his daughter, associates or business partners.<\/p>\n\n\n\n
In March 2022 four companies submitted bids to supply Masakhane with 60 000 food containers.<\/p>\n\n\n\n
In a situation similar to the computer contracts, an analysis of the bidders by amaBhungane found that at least three of the four companies which responded to the call for quotations had links to Mokoena. <\/p>\n\n\n\n
After reviewing the quotations submitted by all four companies, members of the bid adjudication committee (BAC) recommended that the R477 000 contract be awarded to Mokoena\u2019s Mafahla Group.<\/p>\n\n\n\n
The next month, in April, Masakhane issued another purchase request for 60 000 containers and again Mafahla was awarded the contract this time beating four other bidders with a quote of R453 000.<\/p>\n\n\n\n
Interestingly, the two \u201crival\u201d companies which amaBhungane has been able to link to Mokoena kept their prices exactly the same in each bid.<\/p>\n\n\n\n
For 60 000 containers, Tobetsa Trading submitted quotes valued at R495 000 and Talita Collection\u2019s quote in both cases was R499 800.<\/p>\n\n\n\n
Mokoena\u2019s links to these two \u201ccompetitors\u201d can be discerned by way of company records, social media and dodgy paperwork.<\/p>\n\n\n\n
Tobetsa\u2019s director, David Motaung, is linked to Mokoena through another company called Freegift Projects. Mokoena was appointed as the director of Freegift Projects on the same day that Motaung resigned in March 2019. This suggests that they are, in a different context, business associates.<\/p>\n\n\n\n
With the other losing competitor, Talita, there are a number of points of contact.<\/p>\n\n\n\n
Social media searches reveal that the company\u2019s sole director had previously been Thalitha Dlamini who is Facebook friends with Mokoena in two of the accounts that are linked to her on the social media website.<\/p>\n\n\n\n
Dlamini, who works as a nurse for the state, resigned as the company\u2019s sole director in 2021 and was replaced by her nephew Samuel Mashishi before the bids in question.<\/p>\n\n\n\n
When amaBhungane tracked Mashishi down at his home in a small village in the North West he claimed that he has never heard of the company while acknowledging that Dlamini was his aunt.<\/p>\n\n\n\n
<\/div>\n\n\n
\n
It is also noteworthy that Talita had bid against Mokoena in the past under suspicious circumstances.<\/p>\n\n\n\n
It was one of the rival bidders in the chicken pieces contract featured in the SIU\u2019s Tembisa Hospital report \u2013 the contract that went to Mokoena\u2019s Fairg Holdings.<\/p>\n\n\n\n
Regarding Talita\u2019s documents, the SIU found that the dates on the bid documents were altered to the same date as the winning bidder, Mokoena\u2019s Fairg Holdings. This is suggestive of collusion.<\/p>\n\n\n\n
When Talita bid against Mokoena for the plastic container contracts at Masakhane its documents again contained seemingly tell-tale inconsistencies where bid dates do not correlate with the submission dates and appear to be altered or partially complete. This raises the question of whether they were boilerplate cover quotes.<\/p>\n\n\n\n
After the March and April contracts won by Mafahla (with Talita submitting identical losing bids) Masakhane issued more calls for quotations in May and July 2022.<\/p>\n\n\n\n
These were for dual film cling-wrap and more containers respectively.<\/p>\n\n\n\n
Talita would once again bid for both contracts \u2013 and once again lose against Mokoena companies.<\/p>\n\n\n\n
In the dual film bidding Talita was joined by another losing bidder called Sentebale99 which amaBhungane established is owned by Mokoena\u2019s daughter Itumeleng Mokoena.<\/p>\n\n\n\n
The winner: Mokoena\u2019s Bitbest, once again signalling potential cover-quoting by friends and family.<\/p>\n\n\n\n
<\/div>\n\n\n\n
Following the process<\/strong><\/strong><\/p>\n\n\n\nAsked to explain, Mokoena told amaBhungane to direct our questions to the department and Masakhane.<\/p>\n\n\n\n
Mokoena maintained that he followed the bidding processes of the department and \u201cif the documents were not fine, they (department) were supposed to return them to me.\u201d <\/p>\n\n\n\n
\u201cI don\u2019t force anyone to give me a job,\u201d Mokoena added.<\/p>\n\n\n\n
Questions sent to the department\u2019s media team and spokesperson Motalatale Modiba were not answered despite Modiba stating that the media team would \u201cprocess\u201d our request.<\/p>\n\n\n\n
Attempts to get hold of Thalita\u2019s Dlamini through calls, email and social media were unsuccessful. <\/p>\n\n\n\n
AmaBhungane also made a trip to her home in Tembisa but no one was at the house which also acts as Talita Collection\u2019s registered business address.<\/p>\n\n\n\n
Her nephew Mashishi told amaBhungane that Dlamini was his aunt, however, the man said he knew nothing about Talita Collection despite being listed as the company\u2019s director.<\/p>\n\n\n\n
\u201cI don\u2019t have a company,\u201d said Mashishi. \u201cI don\u2019t remember being told anything about being appointed to join a company\u201d.<\/p>\n\n\n\n
When we showed him the bid submissions made under his name and using his identity number, Mashishi immediately said the signature on the documents was not his.<\/p>\n\n\n\n
Mashishi showed us a letter he previously signed to prove that it did not match the signature on the documents.<\/p>\n\n\n\n
\u201cI don\u2019t disagree that this is my aunt, but I don\u2019t know what is happening here,\u201d said Mashishi.<\/p>\n\n\n\n
<\/div>\n\n\n\n
Malito<\/strong><\/strong><\/p>\n\n\n\nThe May contract for containers was awarded to a company called Malito who beat Talita Collection and another contender called Seyakhuza with a bid of R492 160 for 64 000 units.<\/p>\n\n\n\n
Seyakhuza is owned by 20-year-old Nkosinathi Shezi who is the company\u2019s sole director.<\/p>\n\n\n\n
While evaluating the company\u2019s documents we found a similar mistake in Seyakhuza\u2019s bid documents and those of Sentebale99 owned by Mokoena\u2019s daughter. While filling out the local content declaration form, both companies state that they are replying to a bid issued by \u201cSebokeng Hospital\u201d. <\/p>\n\n\n\n
Further, even though Seyakhuza was applying for a contract in May 2022, the company\u2019s documents appear to have been repurposed from a December 2021 version.<\/p>\n\n\n\n
Malito\u2019s bid documents show one Victor Mohale as a director but the company records and the information on CSD list the director of Malito as none other than Mokoena.<\/p>\n\n\n\n
Malito had 90 000 containers available which gave it an advantage against the other suppliers who would only get stock in six to 12 weeks or 14 days according to emails seen by amaBhungane.<\/p>\n\n\n\n
<\/div>\n\n\n\n
Prices \u201ctoo low\u201d<\/strong><\/strong><\/p>\n\n\n\nMalito would go on to win another bid for 60 000 containers around the same time, this time charging R8 per unit as opposed to the R7.69 charged previously.<\/p>\n\n\n\n
It\u2019s not clear why Masakhane released two purchase requests for containers around the same time or whether both of these orders were processed.<\/p>\n\n\n\n
However, an internal letter shows that the bid adjudication committee responsible for vetting the various applications was, counterintuitively, not happy with the unusually low bids received from Malito\u2019s competitors E6 Trading and Logistics and Bonang Sechaba Solution.<\/p>\n\n\n\n
The two company\u2019s prices were significantly lower than the R8 per unit being charged by Malito.<\/p>\n\n\n\n
E6 Trading\u2019s per unit price was R2.50 while Bonang Sechaba came in at R4.99, with the companies\u2019 bids totaling R150 000 and R299 400 respectively while Malito came in at R480 000. <\/p>\n\n\n\n
In a letter to Masakhane\u2019s manager Matthews Ledwaba, the adjudication committee requested leave to appoint Malito instead of one of the other two cheaper companies.<\/p>\n\n\n\n
In motivating for Malito, the committee alluded to concerns about the quality of the other suppliers\u2019 products and whether they would be safe and maintain the quality of meals for patients.<\/p>\n\n\n\n
\u201cThe supplier quoted upon the market price range which is R8,00 and the last two suppliers quoted R7.99, other one has quoted R7.80.\u201d<\/p>\n\n\n\n
The request was not approved, but flags the potential for lasting price distortion if previous bid manipulation had occurred.<\/p>\n\n\n\n
<\/div>\n\n\n\n
Bas Medxpress\u2019s shadow<\/strong><\/strong><\/p>\n\n\n\nA 2023 quote, obtained by amaBhungane, shows that one of the \u201capproved\u201d manufacturers who make the containers used by Masakhane sells the containers for R2,03 per unit where a batch of 64 000 containers would be R103 108.61.<\/p>\n\n\n\n
But Masakhane buys these containers for a \u201cmarket price\u201d of between R7 and R8 from middlemen, almost up to 300% more than the wholesale price.<\/p>\n\n\n\n
In a previous article we showed that BAS Medxpress (BAS Med), the company that previously had the tender to supply these containers, allegedly inflated its prices to make room for supposed kickbacks destined for three senior Gauteng Health officials.<\/p>\n\n\n\n
Our April report revealed that the acting head of department Arnold Malotana and his colleagues Edgar Motha and Sherriff Lecholo were under investigation by the Directorate for Priority Crime Investigations (the Hawks) and the SIU after whistle-blowers separately filed allegations of tender-rigging and corruption against them.<\/p>\n\n\n\n
The three officials were accused of fixing and grossly inflating the BAS Med plastic container tender to allegedly make room for kickbacks \u201cof up to R8-million\u201d for their alleged assistance.<\/p>\n\n\n\n
Documents submitted to the Hawks by a whistle-blower with an intimate knowledge of the events shows that the company initially priced its containers at R7 excluding VAT but after negotiations with the department it was finally awarded the tender at a unit price of R6.84 including VAT. <\/strong><\/p>\n\n\n\nThis price was however far from being the most competitive, as the whistle-blowers\u2019 documents suggested that prices were padded to pay \u201ccommission\u201d.<\/p>\n\n\n\n
These documents revealed that BAS Med was paying R2.05, VAT included, to manufacture the containers.<\/p>\n\n\n\n
BAS Med\u2019s 2016 contract, which would remain active for four years until April 2020 would seemingly cement the so-called \u201cmarket price\u201d that sees Masakhane still paying around 300% more than the cost price of these containers.<\/p>\n\n\n\n
This highlights the lack of rigour in Gauteng Health\u2019s procurement processes in the wake of multiple scandals which have undermined service delivery in public health institutions and the pervasive role of middlemen.<\/p>\n\n\n\n
Gauteng Health has repeatedly ignored questions about the progress of investigations into allegations against the three officials.<\/p>\n\n\n\n
The Hawks told amaBhungane that their investigation was \u201cstill ongoing\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"
A Johannesburg businessman whose companies were flagged as seeming beneficiaries of irregular contracts at the infamous Tembisa Hospital appears to have been engaged in similar suspicious behaviour at another Gauteng health institution. An investigation by amaBhungane has revealed that in…<\/p>\n","protected":false},"author":5,"featured_media":27687,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-27686","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stories"],"acf":[],"_links":{"self":[{"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/posts\/27686","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/comments?post=27686"}],"version-history":[{"count":2,"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/posts\/27686\/revisions"}],"predecessor-version":[{"id":30111,"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/posts\/27686\/revisions\/30111"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/media\/27687"}],"wp:attachment":[{"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/media?parent=27686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/categories?post=27686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/further.co.za\/amabwp\/wp-json\/wp\/v2\/tags?post=27686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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