R174.5 million tourism safety tenders under the spotlight after serious allegations

The Department of Tourism (DoT) has confirmed that it is investigating allegations of irregularities in its flagship multi-million-rand programme aimed at boosting tourism safety and tackling youth unemployment.

The Tourism Monitors Programme (TMP) is under scrutiny after allegations of a manipulated tender process surfaced around a recent contract awarded at KwaZulu-Natal’s (KZN) Ezemvelo Nature Reserve, raising concerns about the broader programme.

In KwaZulu-Natal, the company awarded the contract was initially disqualified for failing to meet a requirement to have a physical office in the province – a condition that was amended at the eleventh hour.

Despite also falling short of the minimum scoring threshold in Gauteng’s preliminary evaluation, the company was ultimately awarded the contract.

Meanwhile, another firm that was earmarked for the project claims that, despite engaging officials regarding an “imminent” official appointment, the bid “was ripped from under [their] feet.”

DoT spokesperson Tasneem Carrim confirmed with BusinessTech that all these allegations are currently under investigation.

The appointed company maintains that its hands are clean, was never informed of any disqualification, and claims it has successfully implemented the project.

Tourism is a critical component of South Africa’s economy, but it continues to be marred by issues related to crime, prompting the development of the National Tourism Safety Strategy.

Tourism Monitors collaborate with SAPS and other law enforcement and receive safety training through a National Certificate in General Safety Practices (NQF Level 3).

The TMP places unemployed youth at high-traffic tourist sites to boost safety and gain work experience through the Expanded Public Works Programme.

Backed by a R174.5 million budget, it trained and placed over 2,300 monitors last year through various implementing agents.

Controversy around the bidding

A specific controversy centres on the appointment of service providers to manage the programme’s implementation at the Ezemvelo Nature Reserve in KwaZulu-Natal.

Thembanathi Group, a skills development and training company, responded to calls for bids for an 18-month contract, bidding for the Ezemvelo and KZN tenders, for R3.17 million and R4.32 million, respectively.

Preliminary Bid Evaluation Committee (BEC) minutes from December 2023, seen by BusinessTech, show that Thembanathi Group received an initial average technical evaluation score of 90.33 for Ezemvelo and 90.67 for KwaZulu-Natal – the highest among bidders in that round.

In their final round of evaluations among shortlisted companies, Thembanathi placed second in the KZN bid, scoring 93.18 out of 100, trailing behind another bidder who achieved a perfect score of 100 out of 100.

For Ezemvelo, they received the third highest score of 82.31.

The minutes state that they were “recommended for Ezemvelo as the two highest bidders are already recommended for two sites.”

Subsequently, DoT officials contacted and conducted a due diligence site visit at Thembanathi.

Thembanathi was later briefly announced as the successful bidder for Ezemvelo on the DoT’s website. However, it was subsequently removed from the site, and no formal appointment letter was sent.

According to communications seen by BusinessTech, the DoT sent an invitation to the group on January 10, 2024, for an introductory meeting of appointed service providers scheduled for January 12.

Thembanathi was also asked to begin behind-the-scenes tasks, including recruiting learners, to avoid delays.

They were introduced to Ezemvelo Wildlife Management and tasked with consolidating online and in-person applications with the reserve’s project manager.

According to its CEO, Ntokozo Gwala, Thembanathi invested resources and contracted staff in anticipation of starting the project.

On 22 January 2024, they were informed that the DoT planned to offer an induction workshop for service providers on 29 and 30 January 2024, to which they had initially been invited.

Just after this, Gwala was allegedly instructed by a senior official to put everything on hold.

Project “ripped from under our feet,” say Thembanathi

According to Thembanathi, they learned that their “imminent appointment” had been withdrawn because the department said that its own Terms of Reference (ToRs) requiring service providers to have a physical office in the province of operation were “discriminatory”.

“We were literally on the road to collect CVs when we received this call. No reasons were provided for this instruction,” said Gwala.

A 21 December 2023 Departmental Bid Adjudication Committee meeting noted Thembanthi as the recommended bidder for Ezemvelo, but they decided to reconsider disqualified bidders.

In the initial meeting in early December 2023, the BEC disqualified MMC Business Solutions JV Siva Security Services from Ezemvelo for failing to provide proof of office in the province they applied for, instead submitting proof for Gauteng. 

According to paragraph 3.3 of their ToR, “bidders… must have a physical office within the province they are applying for and submit proof thereof.”

However, during a BEC meeting on 24 January 2024, the disqualification of unsuccessful bidders was reconsidered.

They said that they did not explicitly “state in the ToRs that… Ezemvelo requires proof of office in KZN.” Applicants for ACSA and SANBI sites were not held to the office requirements.

The minutes stated that the Departmental Bid Adjudication Committee “requested that the principle used for disqualifying and qualifying bidders should be applicable across.”

The January 2024 BEC meeting resolved to recommend MMC Business Solutions Joint Venture with Siva Security Services for the Ezemvelo Nature Reserve project, saying that they were the “third highest bidder,” and not Thembanathi.

They approved the award at a cost of R2.86 million, lower than Thembanthi’s.

Other allegations

Gwala contends that if the ToRs were discriminatory as stated by the committee, “the correct and ethical” procedure would have been to re-advertise the bid with revised terms, not to change the process internally, alleging it to be “flawed and corrupt.”

According to discussions among individuals familiar with the department, there are allegations that the BEC chairperson heavily influenced the decision to change course.

He allegedly had a connection with someone involved with the service provider through their church.

In response to questions from BusinessTech, the chairperson said that although he knows of the person given that they attend the same denomination, he does “not have a personal relationship with him.”

Asked whether the fact that they knew of each other influenced the awarding of the bid, the chairperson categorically stated, “absolutely not.”

“I was involved in the BEC, [and the accused’s] profile was not featured in any of the documents I evaluated,” he said. “The BEC does not award bids. It merely evaluates and recommends to the BAC.”

“The Department has clear and robust supply chain management policies in place, which include the declaration of interest forms, oversight by multiple governance structures such as the BAC.”

Gwala also questioned how “someone who was deemed technically weak to run the project in Gauteng, would suddenly be good enough to run the same project in KZN (Ezemvelo).” 

According to BEC minutes, the joint venture’s preliminary evaluation score for Gauteng was 74.67.

As such, it was “disqualified for further evaluation, as they failed to meet the minimum required score of 80 points,” for further evaluation, according to the minutes.

Thembanathi Group has lodged complaints with the Public Protector, the Minister’s office, and the Presidency. The matter is now being pursued through legal channels.

Responses to the accusations

Pearl Maluleke, Director of Siva Security and MMC Joint Venture, told BusinessTech that “at no point were we informed by the Department of Tourism of any disqualification from the procurement process.”

“The Joint Venture did not receive any official communication indicating disqualification or any internal procurement findings of that nature.”

“Our first formal communication from the Department was the appointment letter, which we received in good order, confirming our successful bid,” added Maluleke.

Maluleke said that as no disqualification was formally communicated to them, there was likewise no indication of any change in status that required clarification or justification by the Department.

They proceeded in accordance with the appointment and the contractual obligations outlined therein.

Maluleke added that the joint venture demonstrated a “commitment to transparent, effective project delivery in support of national tourism development goals.”

She added that the project was successfully implemented over a 12-month period, in line with the contract and the Department’s objectives, which the DoT echoed.

A total of 150 Tourism Monitors received classroom-based theoretical training, followed by structured workplace experience at various Ezemvelo sites across KwaZulu-Natal.

Carrim reiterated that the abovementioned alleged irregularities in the tender process, including interactions between officials and bidders, are currently under investigation. 

She said that any allegation of maladministration in the department is taken very seriously, with consequences for any findings of impropriety.

She also said that contractual obligations with appointed service providers were “executed satisfactorily,” and stressed that such accusations should not mar the entire project.

The project “provides some skill sets to our youth and opens up employment opportunities for them,” along with safety improvements for tourists, added Carrim.

Democratic Alliance MP and party tourism spokesperson Haseena Ismail raised “critical concern” about the TMP, calling the programme’s implementation “deeply flawed.”

She cites alleged poor oversight, limited training, and procurement irregularities. Her party has called for a full audit of the programme.