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ETHEKWINI NEWSFLASH

FOR IMMEDIATE RELEASE

UPDATE: CITY REAFFIRMS COMMITMENT TO WATER SERVICE DELIVERY AMID CONTRACTOR DISPUTES

The City wishes to withdraw parts of the previous statement issued regarding the Auditor-General's finding on the previous contract used by the Municipality to appoint plumbers.

The City wishes to clarify that the previous plumbing contract was not compliant with the Municipal Supply Chain Management policy. The Municipality subsequently initiated a new procurement process, and through that process, introduced a revised contracting model for plumbing services using the City's Contractor Infrastructure Panel (CIP).

This approach ensures that plumbing services are procured and managed in accordance with applicable supply chain management requirements.

During this transition, some contractors challenged the process in court and sought to halt the implementation of the new contracting model.

The City subsequently introduced interim measures through the approved CIP management contract to ensure continuity of service delivery.

However, some former contractors have expressed dissatisfaction with the arrangement, insisting on being contracted directly by the City as individuals rather than operating as subcontractors under appointed managing contractors.

Currently dispute primarily relates to the implementation of the new contracting model.

The subcontractors now operate under managing contractors appointed through the CIP process. The managing contractors receive a 15% management fee in accordance with rates approved through the City's Bid Adjudication Committee (BAC).

ENDS

Issued by eThekwini Municipality’s Marketing and Communications Directorate