Tyre scam uncovered at Newcastle city depot

Business

A tyre scam involving three workshop employees at Newcastle Municipality has been uncovered by the municipality’s internal audit unit during a review of the R1.9 million tender.

The findings  discovered during the company’s audits implicate the three employees in the annual tender involving the repair and replacement of tyres on municipal vehicles. Further investigations are currently going on and the names of those implicated in the scam have been withheld till necessary investigations are completed.

The contract given was for the  repair and delivery of tyres  and it would be on an as-and-when basis.

According to the audit findings, the new tyres differed from the tyres stipulated in the contract. Furthermore, the tyres that were fitted on the vehicles were of a different brand as mentioned in the bid document, and were made in China. This meant it was much cheaper than what the service provider had tendered. The prices charged were the actual prices stated on the signed contract.

“There was no proof that tyres were actually fitted on some vehicles. There was no proof the tyres fitted were actually new and hence there was the huge possibility that re-tread tyres were fitted but the service provider invoiced the municipality for new tyres,” read the report.

It  is alleged that the three  employees conspired with the service provider in procuring the tyres, and that one of the employee’s daughter worked for Tiger Wheel, which was not declared in the bidding document.

Mswane confirmed the report and said the Municipal Property Assessment Corporation (MPAC) gave a directive for the matter to be further investigated by an outside expert.

“We can’t comment on this matter as the investigation is ongoing. We expect to get the final report in January,” Mswane said.

 

 

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