Dear Ratepayers, Business and Civil Society,
Le Roux Inc were appointed by the NMBM to provide expert legal services for the municipality. As part of the investigation into spending against the IPTS project, payments made to Le Roux Inc came under scrutiny due to the total of payments made during the period under review being in excess of R 28 million in the 2013/14 book year. It is adequate that SCM processes were not followed within the IPTS office and Le Roux was used as an “agent” to bypass SCM processes.
The initial two payments made to Le Roux Inc during December 2013 that came under review were both for an amount of R 6 902 780.94 related to invoices received from Jarami Projects cc and a 10% professional fee due to Le Roux Inc on the said invoices in respect of a Legal Compliance Project Management System within the IPTS. (Le Roux Professional fee R 550 451.00 plus vat per invoice)
On further investigation we discovered that the two payments made to Jarami Projects for the Legal Compliance Project Management System which was delivered to the project manager Adv Tshamase.
As can be seen in the animated GIF below, system payment were as follows:
- A laptop has been delivered with the system installation and submitted to the project manager – R 2 386 986.00
- The template have been installed on the laptop and have therefore also been delivered – R 3 634 848.00
- The solution was integrated into the project management system solution and installed on the delivered laptop – R 4 987 386.00 totalling R 11 009 220.00 for the said laptop and software.
It is unclear where the laptop and software has been used seeing that the IPTS office appointed thirteen Consulting Companies to assist Adv Tshamase and the IPTS office with a total cost of R 188 803 502.22 for the 2013/14 book year. We yet to see the laptop to be able to assess the value of the software on the laptop.
AfriForum already busy filling a High Court Application against this irregular appointment and reclaim all payments to Le Roux and Metro officials involved. This application forms part of AfriForum’s legal action against corruption and will be the 2nd of 40 application’s against contractors and officials to recover all irregular expenditure on the IPTS system.
NMB Ratepayers association
Afriforum Port Elizabeth
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