Morning Glory Security Services intends to take legal action against the Northern Cape Department of Roads and Public Works as the company is owed in excess of R12 million by the main contractor.
MORNING Glory Security Services intends to take legal action against the Northern Cape Department of Roads and Public Works as the company is owed in excess of R12 million by the main contractor.
The company indicated that it was unable to pay salaries, while workers had sought relief from the Commission for Conciliation, Mediation and Arbitration (CCMA) on November 30.
It has submitted invoices amounting to R1.7 million for outstanding payments for November and December.
A lawyer’s letter was sent to the head of the provincial Department of Roads and Public Works, Dr Mac Kay, giving them until December 8 to provide proof that the main contractor, Batsha ba Tirong Financial Management (Pty) Ltd, was appointed in line with procurement processes.
The R88 million contract that was awarded to Batsha ba Tirong Financial Management (Pty) Ltd over a three-year period expired on October 31. The contract was subsequently extended for another three months until January 31, 2023 due to “logistical reasons”.
This is while the director of Batsha Ba Tirong Financial Management, Zo-Marius Bocks, appeared in the Specialised Commercial Crimes Court yesterday on charges relating to fraudulent tax claims amounting to around R22 million.
It is alleged that during 2018, while the company was not conducting any business, a VAT refund of R8.8 million was submitted to the South African Revenue Service (Sars).
According to the charges, a pay as you earn (PAYE) claim amounting to R13 million was submitted to Sars in April 2019 that was based on a non-existent IRP5 certificate.
The lawyer’s letter pointed out that Bocks had resigned as company director in August and placed his daughter, Raphaella Maxine Bocks, as the owner.
“The department should confirm whether Mr Bocks is authorised to represent the company and if Raphaella Maxine Bocks is registered with the Private Security Industry Regulatory Authority (Psira). According to information, the appointment of the main contractor was irregular as it was non-compliant.”
It added that the main contractor was accused of submitting false company tax returns.
It was indicated that the department paid the money that was due to Morning Glory Security in October when the main contractor failed to pay them.
“The department, as the funder, has an obligation to ensure that 30 percent goes to Morning Glory Security. If this does not happen, the short payment amounts to irregular expenditure … that should be declared to Provincial Treasury as well as the Office of the Auditor-General.”
The chairperson of the Northern Cape Civics Organisation, Ross Henderson, believed that due diligence was not being implemented if the Department of Roads and Public Works continued to do business with the main contractor despite them being in court for allegations of tax evasion.
He added that the matter would be reported to the auditor-general.
“We will ask for a full investigation into how the contract was awarded and why the company was appointed if it did not have tax clearance.”
Northern Cape Department of Roads and Public Works spokesperson Crystal Robertson said due processes were followed when Batsha Ba Tirong (Pty) Ltd was appointed.
“A tender for the provision of security services was advertised by the Department of Public Works during April 2019 in the local newspapers. Thereafter, the department followed the necessary procurement processes and the contractor received an appointment letter on September 30, 2019. Upon awarding of the security tender to Batsha Ba Tirong (Pty) Ltd, the company was tax compliant,” said Robertson.
She added that the department was not aware of any political connections relating to the appointment.
“Our contract is with the main contractor and not the sub-contractor and we do not owe the sub-contractor any money. The department intervened when the main contractor defaulted on paying the sub-contractor, who in turn was unable to pay its workers.”
Robertson stated that a new tender was advertised when the security contract expired on October 31.
“The closing date for the new tender was October 11 and we aim to award the new tender by the end of January 2023. As an interim arrangement, the department’s contract with Batsha Ba Tirong (Pty) Ltd was extended for three months, to allow for the finalisation of the new tender.”
The director of Batsha ba Tirong Financial Management (Pty) Ltd, Zo Bocks, said his lawyer would provide comment on the matter.
