President Mokgweetsi Masisi’s sister Boitumelo Phadi Mmutle has won government tenders worth close to P100 million through direct appointment, Parliament was told this week.
Responding to Parliamentary questions by Member of Parliament for Maun West Dumelang Saleshando, Finance Minister Peggy Serame revealed that between October 2014 and April 2018, two tenders valued at more than P13. 8 million were awarded to Monteco Solutions. These tenders were awarded as part of the contract framework with total value of more than P166 million, of which only 8.4% was awarded to Monteco Solutions.
These tenders, Serame said, were for Procurement of Condoms (Open Domestic Bidding) and Surgical and Medical Supplies Dressings 3 (Open Domestic Bidding).
Of the latter, there were five other companies awarded more than P116 million, while Monteco Solutions (Pty) was awarded P3,9 million translating to only 3.3%. The Minister said from April 2018 to date, eleven (11) tenders valued at P84 million were awarded to Monteco Solutions.
“Out of these, three (3) tenders were awarded under contract framework, while eight (8) were once-off contracts. The eleven (11) tenders awarded to Monteco Solutions represented 6.7% of the total tenders awarded for procurement of ARV’s, Surgical and Medical Supplies and other health service products,” said Serame. She said the tender was worth P1.2 billion.
Of this amount, one of the tender for ARVs amounting P773 million was an open international bidding method for which nine (9) companies were awarded, of which Monteco Solutions was awarded eight million, four hundred thousand, six hundred and sixty-nine pula and thirty-six thebe or 1.1%.
The Minister said the other eight (8) companies shared P765 million. In the other tender for Procurement of Surgical and Medical Supplies – Dressings 3, amounting to P238 219 882.12 was a Direct Bidding method for six (6) companies which were previously awarded a similar tender in February 2018.
From this procurement, Serame said, Monteco Solutions (Pty) was awarded P662 million representing only 0.2%, while the other five companies were awarded P237 million.
Serame said the total value “of the thirteen (13) tenders awarded to Monteco Solutions since its formation to date is ninety-eight million, one hundred and thirty-nine thousand, and eighty-two pula, and fifty-five thebe (P98 139 082.55), representing 6.9% of the total value of tenders awarded.”
She said Monteco Solutions (Pty) was awarded tenders (framework contracts and short once-off Request for Quotations) for the Ministry of Health. Framework contracts are of a duration of two (2) to three (3) years, and after signing of the contract, the Procuring Entity (PE) would only procure the quantities they required for the contracted periods at the rates approved by the then PPADB and its Committees. “It did not mean that the PE had an obligation to procure all items to the total value of the respective awards,” she said.
She said the tender for the Procurement of Surgical and Medical Supplies – Dressings 3 awarded on the 9th December 2021, was done through a direct appointment of six (6) companies that had been previously contracted for a similar tender, Monteco Solutions being one of them.
“The basis for the direct appointment decision was; there was insufficient time for any other procurement method to be used as the required products were meant to address COVID-19 health related issues,” said Serame. She said the Procuring Entity was also in the process of formulating/preparing all its tender documents (ITTs), including for the Dressings, to accommodate changes that had taken place in the market owing to COVID-19 supply chain disruptions.
“The Public Procurement and Asset Disposal Board noted that the Procuring Entity was in consultation with stakeholders to incorporate new developments and that ITTs would only be finalised following conclusion of the said engagements,” said Serame.
Serame said the Board also considered the fact that these suppliers were already familiar with the products and therefore justified under the circumstances to appoint them for the short period requested.
The above was done in line with the then PPADB Regulation 61 (1), which provided that “the direct procurement method may be used where the selection of supplier is conducted on a sole supplier basis without competition, such as where- (a) there is insufficient time for any other procurement method due to an emergency situation,…and (f) where it is justified in the circumstances”. The Minister revealed that “according to information extracted from the Companies and Intellectual Property Authority (CIPA), Monteco Solutions (Pty) Ltd was first registered on 24th February 2017 and its only director and shareholder since then to date is Ms Boitumelo Phadi Mmutle.”
Saleshando had asked Serame to state: the number of Government tenders and corresponding values of tenders, awarded to Monteco Solutions (Pty) Ltd for the following periods; Tenders awarded before October 2014; Tenders awarded between October 2014 and April 2018; Tenders awarded after April 2018 to date; and the MP also sought to know which of the tenders were direct allocation and reasons why such tenders were not subjected to a competitive bidding process, as well as the directors and shareholders of the company for the corresponding periods.
Saleshando also wanted the number and value of Government tenders awarded by the then Public Procurement and Asset Disposal Board (PPADB) and the Ministry of Health through Central Medical Stores to Monteco Solutions (Pty) Ltd.
