Olebogeng Molatlhwa, The Sowetan

A DAY after Sowetan reported that a North West department will pay a contractor R22 million - despite not having completed the Brits hospital project, an investigation has been ordered into another dubious tender.

MEC for public works, roads and transport Mahlakeng Mahlakeng has asked Gobodo Incorporated to investigate a R664million 10-year lease agreement signed between Peolwane Properties and the provincial health department.

The lease - which will cost the health department R40million a year in rent - was signed in December last year by former head of department, Lydia Sebego.

Sebego has since asked to be transferred to a national department. This was confirmed by Premier Maureen Modiselle in August.

The contract also includes a yearly 8percent escalation.

TEB Properties, who lost out to Peolwane Properties, complained to Mahlakeng's department that their R23million bid had been significantly lower than the winning bid.

Theirs also was for a much larger 22000sqm² - compared with Peolwane's 19 031sqm² building which is still under the construction. This means Peolwane will be charging R206,94 a sq m² while TEB would have charged R123 a sq m².

Two weeks ago City Press reported that Peolwane had been disqualified for failing to attend a compulsory briefing but the department overturned this decision, disqualifying TEB's bid instead.

Facilities manager at Avusa building in Rosebank, Johannesburg, Ierfaan Livingston, said a similar A-grade building in affluent suburbs costs around R120 a sqm².

The new building will house 644 staff.

TEB Properties owner Thamsanqa Bozwana said yesterday it was "ridiculous" that the department preferred a bid that "was not market related".

Bozwana - referring to an evaluation report which revealed that his bid scored the highest points - said the bidding process was "rigged".

"We won the bid fairly. It is absolutely ridiculous that the department would choose a tender that was not market related," Bozwana said.

TEB is preparing a legal challenge.

Peolwane director Reginald Kukuma told Sowetan that "according to me, the bidding process was transparent".

"We have not received any complaints concerning irregularities with our bid. As far as we are concerned, everything is in order."

Kukuma is also managing director of Tau Pride Development Group, which was appointed by the Gauteng government early this year to supervise the newly appointed contractor of the controversial Jabulani hospital.

North West public works spokesperson Roberta Makhambeni, said the investigation was called to determine if "due process" was followed in leasing the offices.

"There were irregularities found . but the investigation was called following enquiries about the lease," Makhambeni said yesterday.

Mahlakeng said the decision to investigate the deal did not mean that the public works department was saying any wrongdoing had taken place.