Former TVET CEO and others released on bail

Update

GEORGE NEWS - Eight people appeared in the George Magistrate's Court earlier today after they were arrested in connection with fraud involving millions of rands, committed at the South Cape TVET College.

The Hawks and Pops closed in on the eight yesterday morning for the theft of R24 million between 2009 and 2014. One of the arrested is a former South Cape College CEO, Luvuyo Lennox Ngubelanga (55).

Ngubelanga was released on R10 000 bail. His co-accused were each released on bail seperately.

Elliot Dyabaza (51) was released on R3 000 bail.
Prudence Dingiswayo
(46) on R2 000, Patrick Mcedisi Mbebe
(57) on R5 000 bail, Pieter Johannes Sam
(52) on R5 000, Andreas Khulekani Ngubeni
(53) on R5 000, Nomathamsanqa Maude Msizi
(39) on R3 000 and Shamrack Njozela (60) was released on R3 000 bail.

The arrested include education officials and people from the private sector. They face charges of corruption, fraud and alternatively theft.

The matter has been postponed to 11 May for transfer to the George Regional Court date.

The state's case:
In a statement released by the National Prosecuting Authority (NPA), spokesperson Eric Ntabazalila said the State alleges that between 2010 and 2014, Ngubeni’s construction company, Inyameko Building Construction, was requested to submit 25 quotations for construction and related alterations across all South Cape College TVET Campuses. Ngubelanga, Dyabaza, Dingiswayo, Mbebe, and Sam, acting in common purpose, approved quotations submitted by the construction company, although there were no supporting documents in the form of valid tax number, construction industrial development board certificate, or declarations form. The appointment of the construction company led to the exclusion of other competitors which was contrary to sections 1, 4, and 8 of the Procurement and Supply Chain Management.

The three sections of the Procurement and Supply Chain Management dictate that the institution must derive the best value for money from its purchasing activities; preserve fair trade relations with the suppliers following a system that is fair, equitable, and transparent, competitive, and cost-effective. The sections also require the institution to establish, implement and maintain a procurement policy that is fair, equitable, transparent, competitive, and cost-effective.

Section 8 sets out a process of ordering facilities which includes that prices for goods and services must be obtained using a quotation, tendering process, and contracts or unsolicited bids. Only approved supplier databases and/or advertisements must be utilised. All tenders/quotations must be in writing and only the finance department situated at the central office will negotiate a possible price and contracts.

The state further alleges that the accused colluded, using various forms of fraud and manipulation, to ensure that the 25 construction contracts were guaranteed for Inyameko Building Construction.

Methods used included a cover quote which is the manipulation of the “three quote system” whereby other companies owned by other accused and suspects, acting in concert with and common purpose, deliberately and conveniently under-quoted to ensure that the contracts were awarded to Inyameko Building Construction. Cover quoting undermines procurement processes by corruptly eliminating competition, and by making artificially inflated prices appear competitive.

The state accuses Ngubelanga and Dyabaza of pretending that the construction projects were urgent and approving them, failing to submit reasons for deviation to the institution’s council, as per Section 7.1.5 of the Procurement and Supply Chain Management. They failed to state the reason why Inyameko Building Construction was appointed or regarded as the preferred supplier as per section 14 of the Procurement and Supply Chain Management.

As a result, the accused, acting in concert, misrepresented to the Southern Cape TVET College and potential tenderers that a fair, equitable, transparent, competitive and cost-effective process was adhered to during the process of appointing construction company for the 25 construction and related contracts.

They knew that affording the company the 25 contracts resulted in the actual prejudice of other potential service providers that suffered an actual loss in this regard. They were aware that the college did not receive the best value for money nor preserve fair trade relations with the other service providers. They failed to adhere to the principles and duties as required by the code of conduct for public officials read with the code of conduct of the institution at the time of sourcing and appointment of the company.

Also, Ngubeni and his company knew that the total payments of more than
R24 million by the institution were not acquired fairly, equitably, and transparently, and that a competitive and cost-effective process was not followed. They knew that accepting the favour or advantage from the accused was unlawful and intentional.

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Shamrack Njozela