Toilet tender stinks

2019-07-03 05:15
Ekurhuleni mayor Mzwandile Masina. (Frennie Shivambu, Gallo Images, file)

Ekurhuleni mayor Mzwandile Masina. (Frennie Shivambu, Gallo Images, file)

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Critics dubbed the Ekurhuleni R1.9bn chemical toilets tender as Imoto Entshontsha Imali (the ‘vehicle for stealing the money’ or the ‘getaway car’). AmaBhungane’s Tabelo Timse went to find out why.


Portable toilets are big business in local government.  

An amaBhungane investigation revealed the Ekurhuleni metro spent a staggering R1.9bn on chemical toilets over three financial years from 2017 to 2019.

The three-year tender to provide toilets to informal settlements was meant to replace the inhumane bucket system, but while this project is a relief to some, other residents regard it as a curse.

Critics suggest the project, where toilets were sourced from 16 small suppliers, was a get rich quick scheme for some underperforming contractors that left many beneficiaries with dirty and broken toilets.

The project was also highlighted in an open letter titled, Large Scale Looting at the City of Ekurhuleni, circulated on social media and addressed to media, government and law enforcement agencies in March this year.

PICS: The toilet collectors

The letter, which appeared well informed, purported to be written by "concerned ANC members, employees and citizens of the City of Ekurhuleni".

It labelled the toilet project as a black hole and a cash cow and alleged that companies involved in the project were linked to officials and politicians, including executive mayor Mzwandile Masina and other senior management figures in the city.

But the City has hit back by arresting three police officers in 'an intelligence-driven joint operation between SAPS and Ekurhuleni Metropolitan Police Department (EMPD)" - allegedly for attempting to extort money from a Member mayoral Committee Lesiba Mpya.

In a statement municipal spokesperson Themba Gadebe linked the investigation to the claims made in the open letter.

"It was found that the messages were being used as an attempt to intimidate Masina and MMC for Human Settlement, Mpya," according to the statement.

If the allegations against the policemen are correct, it appears they chose an issue with real potential to cause discomfort among city barons. 

Chemical toilets

Chemical toilets found in various informal settlements in Ekurhuleni, May 2019. (Tabelo Timse)

AmaBhungane's investigation has confirmed that the Ekurhuleni chemical toilet tender suffered from a serious lack of municipal oversight that saw some companies allegedly taking advantage of contract loopholes at the expense of the poor. 

At the start of the project in 2016, the municipality provided 16 098 toilets and increased the number the following year to 30 795. For the 2018/19 financial year the city provided 39 112 chemical toilets.

Answers provided by the municipality show spending increased from R379m in 2016/17 to R828m in 2017/18 and R758m in 2018/19.

According to a senior municipal official, who did not want to be identified as he is not authorised to speak to the media, "This is one of the most sought-after contracts in the city... [in 2016] about 250 companies submitted bids. The contract doesn’t require much, just provide chemical toilets and service them. Even if you don’t own a single toilet you can hire them and charge whatever you want."

The official stated that the municipality was invoiced between R1500 and R3500 per toilet per month, which was supposed to include being serviced twice a week.

Depending on the allocation of the number of toilets, companies made between R10m and R42m a year with little and "sometimes no oversight at all from the municipality", said the official.

What went wrong?

The senior municipal official said the problem started when it was decided that instead of one or two service providers, as many as 16 companies would be given the contract. 

"There was no proper plan in place, starting from the design of this tender, one can even see from the broad tender specification… the instruction to us (officials) was that there was a need for diversification," he said.

Various municipal sources claimed that the project was designed to benefit politicians who were secret shareholders in the awarded companies, a claim disputed by the contractors and municipality.

According to the 2016 tender documents, the work to be executed under the contract comprised mainly of hiring, delivery and maintenance of chemical toilets within Ekurhuleni on an "as and when required" basis.

Observers have questioned the criteria used to choose the companies. 

The tender specification required contractors to provide their own transport, labour, tools, equipment, security and all other resources to fully execute the contract.  The vehicles and equipment of successful bidders were to be inspected prior to the commencement of the contract.

However, another source privy to the adjudication process in 2016 said most companies chosen did not properly qualify: "They didn’t have the financial muscle to pull this off, no equipment and most definitely no experience," said the source.

He explained that a chemical toilet costs between R9 000 to R20 000 per unit - and then there was the specialised waste truck and the chemicals as well.

"In the beginning of this contract it was chaos… there was a shortage of toilets; only one or two companies had supply and the rest had to hire," said one source.

Contractors taking advantage of the loopholes

"These companies went to the big suppliers of chemical toilets to hire. The very same big companies had tenders but lost out to smaller companies but they ended up hiring out their chemical toilets. This meant the prices went up," said the source.

Because of the high prices the official believes that contractors then cut corners by buying cheap chemicals, not regularly servicing the toilets and underpaying workers.

Another contentious issue was the physical verification of the toilets. Some companies made millions by simply invoicing for non-existent toilets, the official said.

"At the beginning of the contract the municipality never went to physically verify toilets, they solely relied on the contractors. The issue was addressed last year when the municipality instructed each supplier to physically mark the toilet with a number."  

Also, in order to monitor that the toilets were serviced twice a week, the municipality relied on community liaison officers hired by the various contractors.

"The community liaison officer is the one that signs time sheet for the cleaning schedule and submit it at the depot," said a contractor.  This was problematic because they were paid by the contractor and knew "if time sheets are not completed then the municipality will not pay".

Community fingers several contractors

Although there are 16 companies on the contract, there were several whose names kept coming up in complaints during interviews conducted by amaBhungane in various informal settlements.

For example, in Wolf informal settlement in Vosloorus some residents complained about the quality of toilets from Selby Construction and from Ntships Construction and Projects.

Selby chief executive, Selbie Manthata, did not respond to amaBhungane’s emailed query.

Manthata was once close to Julius Malema and former Limpopo premier Cassel Mathale.

Manthata was charged with corruption related to the investigation of On Point Engineering, the firm in which Malema’s trust had a stake — but the case was thrown out for lack of evidence. 

Ntships, director Masiko Maphutha, said as far as he is aware all his areas were fine and refused to answer specific questions.

“Ask the municipality, they are the one that hired us, how can I rate myself,” said Maphutha. 

In Mayfield two residents complained about Leloba Bright Trading toilets not closing properly but the company sole director Molebogeng Mashishi did not respond to amaBhungane’s emailed query.

In informal settlements in Tembisa three residents complained about the quality of toilets provided by Red Ants Security, but the company refused to comment and directed amaBhungane to the municipality.

The municipality meanwhile insisted that all service providers were awarded according to supply chain management processes that are, "highly regulated and transparent".

The city did not address amaBhungane’s specific questions on the criteria used to select the winning companies and what monitoring mechanisms were in place to check that city received value for money.

AmaBhungane had asked the municipality whether it exercised its oversight role and checked whether the chemicals were South African Bureau of Standards approved, how each company was allocated an area and number of toilets, how each company was monitored to ensure workers were fairly paid and suppliers adhered to standard labour practices.

The current situation

A visit by amaBhungane to some informal settlements around Ekurhuleni corroborated resident’s complaints.

Interviews and site visit found the contractors in some areas did not adhere to the tender specifications such as:

  • Zinc toilets in some areas were not serviced;
  • Toilets could not be locked inside;
  • Toilets that did not have enough light and ventilation;
  • Shaky toilets not mounted properly;
  • Toilets positioned on a public road along the periphery of the informal settlement.

On the main road along the edge of Winnie Mandela informal settlement in Tembisa, about ten red chemical toilets are located next to each other.

This is because the shacks are close to each other so there are no spaces in-between the houses, but the set-up is a safety risk according to some residents.

“At night and on weekends, we don’t use these toilets, it is not safe,” said one resident.

Chemical toilets

Chemical toilets line up along the edge of main road Winnie Mandela informal settlement in Tembisa, May 2019. (Tabelo Timse)

Residents complained that these toilets were not cleaned regularly.

"There is not enough ventilation inside these toilets especially in summer… To make matter worse is that that they are cleaned once in a while… we want flushable toilets," one resident said.

Meanwhile as you enter Wattville (Harry Gwala squatter camp) in Benoni, one can see colourful chemical toilets next to the shacks, sometimes on one street.

On talking to the residents, they explained the different colours mean different service providers.

“This means that on one street… there could be four service providers,” a resident who has been living there for eight years explained.

“So, on Monday I could have my toilet cleaned and my neighbour’s toilet could be cleaned on Wednesday and my other neighbour’s might not be cleaned at all for a week depending on the service provider… this creates a lot confusion especially if you want to report a problem you don’t know who to go to.”

In Wolf, a squatter camp on the outskirts of Vosloorus, the residents are not happy with the quality of chemical toilets.

“When the municipality first brought these toilets here, we protested and burnt them because we were not impressed with them … they brought in a better quality but we still not happy about the servicing.”

Chemical toilets
Zinc chemical toilets placed in an open field in Madelakufa informal settlement in Tembisa, May 2019. (Tabelo Timse)

AmaBhungane also spoke to cleaners of the toilets, some of whom complained about salary discrepancies and poor working conditions. 

 “It depends which contractor you work for, some of us are paid R1500 a month for working two days and some are paid are R3500. Why are we not paid the same? This job is coming to an end soon, but after three years we found out we are not even registered at the labour department,” said one.

Although residents were willing to talk to amaBhungane freely they were reluctant to give their names or have their pictures taken fearing they could be identified by community liaison officers hired by the contractors.

“If you talk too much, they won’t call you for projects or put your name in the housing list. During community meetings people voice their anger but that comes with a price,” a woman in Mayfield said.

Social Audit Report

Residents’ complaints are supported by a detailed social audit year conducted by consultants in Ekurhuleni in 2018.

The audit confirmed that the poor delivery of outsourced basic services in informal settlements was due to:

  • non-compliance with contract specifications by service providers;
  • insufficient monitoring of the delivery of the service by the responsible municipality, including inspection by officials;
  • no community complaint/fault reporting mechanism;
  • vague bid specifications;
  • lack of community participation and communication; and
  • inadequate needs assessment.

The audit noted: “In some instances, the same specification appears to be violated in all ten informal settlements. For example, in all areas very few of the toilets inspected had a steel frame built in to ensure stability — as required by the contract. In addition, when all the different aspects related to the cleaning of the toilets were considered (including who is responsible for cleaning, and the frequency and thoroughness of cleaning), it was found that this aspect of the contract is not fully complied with in any of the areas.”

Broader problem

The focus on the Ekurhuleni contract also comes as calls to government to provide proper sanitation are growing.

According to a study published last May titled, Informal Settlements and Human Rights in South Africa, sanitation continues to be a concern in informal settlements, which lack infrastructure for waste disposal and sewage.

The research by the Socio-Economic Rights Institute of South Africa (Seri) stated that as a result of the acute shortage of sanitation services in informal settlements, many municipalities have resorted to using short-term measures by providing access to chemical toilets.

However, the study reveals that chemical latrines are ill suited to long-term use as they deposit waste into small tanks that are treated with chemicals to ensure greater hygiene and reduce odour.

These tanks must be serviced and emptied regularly to remain usable, study states.

According to Seri municipalities have struggled to ensure that these facilities are serviced with the necessary frequency.

The research further states that in most cases, municipalities out-source these functions to service providers and struggle to hold these companies accountable.

A new contract

The Ekurhuleni municipality is expected to make an announcement shortly on the new contractors taking over the project.

The contract will run until 30 June 2022 and the city has included bid specifications intended to improve the quality of the service.

On paper the criteria are stringent but it remains to be seen whether the municipality will adhere to them and not repeat the mistakes of the past.

The amaBhungane Centre for Investigative Journalism, an independent non-profit, produced this story. Like it? Be an amaB supporter, sign up for its newsletter or visit amaBhungane.org.

Read more on:    johannesburg  |  corruption
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