Outrage erupts in South Africa over hotel tender

22 Nov 2010

Source:  Times Live
A storm is brewing in South Africa over the controversial award of a $20-million tender to construct a hotel in Beitbridge, as accusations of bribery, tender manipulation and deceit fly between the State Procurement Board and losing bidders.
The project is said to be the biggest government tender since the multi-currency system was introduced. The Sunday Times understands that the tender scandal is so deep that losing bidders are preparing dossiers to present to police, the Anti-Corruption Commission, the principals in the inclusive government and Parliament.

The tender to construct the three-star 150-bedroom hotel, funded by the National Social Security Authority (NSSA) and Rainbow Tourism Group (RTG), was awarded to the Costain group by board chairman Charles Kuwaza, despite recommendations by the secretariat of the SPB and project managers that the tender be awarded to Murray and Roberts.
Allegations have been flying that Costain is closely linked to at least three senior board members. There are also reports that two of them, an architect and an engineer, go after government tenders on a regular basis.

The losing bidders, who are seeking police intervention, claim the two might have an interest in the hotel construction, while there are reports that a senior member of the board is related to, or is a close friend of, the owner of Costain.

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