Knysna Municipality probably thought that ‘Preferential Premium Policy’ sounded better than ‘Public Pickpocketing Policy’. It granted bonus points to local suppliers which was used to circumnavigate Broad Based Black Economic Empowerment (BBBEE). A tenderer who didn’t submit the relevant certificate, and didn’t score the highest points, could still walk away with the work and money. It’s likely that favouritism was made easier.
The loss to local taxpayers in 2017 was R9-million.
The Western Cape Auditor General (AG) and Provincial Treasury only gave useless warnings. The AG even awarded a clean audit. Consequently, the Municipality continued the illegal practice for another year. By the time the AG stopped it, the final figure would’ve been higher.
Susan Campbell laid complaint with the Western Cape Treasury and the Knysna Council against Municipal Manager Lauren Waring. No one responded.05 2014.11.28 SC complaint -illegal local premium and tenders