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TimesLive reports that the Putco bus company has been enjoying a monopoly in Gauteng for more than 20 years, as its contract with the provincial roads and transport department was continuously extended without a competitive bidding process taking place.
This was the finding Public Protector Busisiwe Mkhwebane made after an investigation conducted into allegations that Putco was the sole contractor doing business with the government in the province. The investigation into the Putco contract stemed from a complaint from Sam Masango, who was acting on behalf of the Moloto Corridor Concerned Residents (MCCR). MCCR complained that Putco faced no competition, restricted other service providers from entering the market and doing business with the government, and enjoyed the power of setting its prices for services rendered on behalf of the government. “We found that the allegation that the Gauteng department of roads and transport (GDRT) irregularly implemented the contract is substantiated,” Mkhwebane said. She reported that her investigation revealed that the original 136-week contract which was awarded to Putco in 1997 had been continuously extended. Mkhwebane directed the roads and transport MEC to take note of the final report and monitor compliance regarding contract management, procurement of goods and services and extension of contracts “to ensure that services are procured through a competitive bidding process to ensure continuous service delivery to the passengers.”
- Read the full original of the report in the above regard by Nomahlubi Sonjica at TimesLive
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