Joburg’s Billion-Rand Vehicle Fleet Contract Under National Treasury Investigation

The City of Johannesburg's controversial vehicle fleet contract, which was given to Afrirent in 2018, has come under official scrutiny. A letter from the treasury director-general, Dondo Mogajane, dated 20th February 2020, reveals numerous irregularities in the billion-rand contract procedure.

AmaBhungane had previously drawn attention to the dubious contract, following concerns about political interference by the Economic Freedom Fighters (EFF) and alleged Afrirent payments into a Julius Malema-associated account.

The city administration has consistently affirmed that it awarded the contract to Afrirent through a fair and proper procurement course. The contract, which has a value exceeding a billion rand, was handed to Afrirent after a competitive tender process was abandoned due to procedural errors. Originally, Avis was set to regain the contract but was displaced after these irregularities were exposed and Afrirent picked as the new service provider.

It's worth noting that Joburg decided to move away from Avis and endorse Afrirent based on a tender Afrirent had received from Mogale City municipality, despite the massive disparity in the size and requirements of the two city jurisdictions.

According to the treasury's letter, there was no justification provided for why the irregularities were not rectified and the tender not re-advertised, raising further questions about the decision-making process.

National Treasury demands the contract to be deemed irregular and void, and they've requested that the City of Johannesburg initiate a forensic investigation within 30 days.

The treasury and the city did not get any progress report yet. Despite controversial claims of alleged EFF interference and a potential connection to Julius Malema, the city and Afrirent both maintain their position on the legitimacy of the tender award.