Tshwane challenges decision ordering suspended officials in Rooiwal tender debacle to return to work

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21-01-2025
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News 24
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• The City of Tshwane seeks Labour Court intervention to overturn an arbitration award that ordered five suspended senior officials to return to work on Monday.  
• Their suspension stemmed from alleged misconduct in awarding the Rooiwal Wastewater Treatment Works tender.
• The multi-million rand tender was awarded to a business linked to controversial businessman Edwin Sodi.

The City of Tshwane is challenging an arbitration award that ordered the reinstatement of five senior officials implicated in the controversial Rooiwal wastewater treatment plant tender.

The officials were suspended last year amid accusations of flouting processes to award the Rooiwal tender to companies linked to controversial businessman Edwin Sodi.

The officials were alleged to have been grossly negligent and/or derelict in the performance of their duties, which breached various legislation, policies, and codes of conduct.

However, the South African Local Government Bargaining Council (SALGBC) found in their favour and ordered they be allowed them to work on Monday.

The implicated officials are Thembeka Mphefu (head of procurement), Stephens Notoane (head of utility services), Justice Sekokotla (director of electricity), Frans Manganyi (head of electricity planning and development) and Dumisani Gubuza (head of water and sanitation).

Sodi's company, Blackhead Consulting, was part of a joint venture with two other companies – CMS and NJR – which was awarded a R290 million tender in 2019 to upgrade Rooiwal. 

News24 previously reported that the contract was terminated in 2022 for poor performance. 

However, the City had already paid R291 996 799.07 despite only 60% of the first phase of the upgrade having been completed. 

In a statement on Sunday, the City said it had lodged a notice of application with the Labour Court to review and set aside the outcome of the SALGBC's arbitration award.

"After giving time and attention to the arbitration award and its implications, the City is of the view that there were defects in the proceedings and the ruling.

The City is obligated to challenge the ruling and has enlisted the services of a firm of attorneys to act on its behalf in the handling of this legal matter.

"The lodging of the notice of application against the SALGBC award freezes the legal effect the ruling has in its entirety," the City added.

Last year, the City filed an application with the Labour Court for a review of the findings, and a sanction was pronounced by the chairperson of the disciplinary hearing against the officials.

"The matter is still pending before the court, and the City has petitioned the court to expedite the review application.

"As a result of the above, the City will not comment any further on this matter as it relates to human resources processes and is under judicial consideration," said the City.

Meanwhile, on Thursday, the City announced that it had completed phase 1A of the Rooiwal Wastewater Treatment Works upgrade three months ahead of schedule.

According to Mayor Nasiphi Moya, Phase 1A focused on completing work initially started by previous contractors under Sodi's company.