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GAMUTSO OUTSMARTS TWO SOUTH AFRICAN COMPANIES IN E260 000 MUNICIPAL TENDER

09/10/2017 08:23:00 BY KWANELE DHLADHLA

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MBABANE – Gamutso Investments stands to pocket over E260 000 for the disaster risk assessment tender at the capital city.

Chief Executive Officer (CEO) for the Municipal Council of Mbabane has issued an intention to award the Swazi company which scored 86 per cent during the tender evaluation exercise.
The company outsmarted two South African firms in the race for the tender which has been awarded in accordance with the Public Procurement Act of 2011.
The SA companies that had tendered for the job were Gravitazz and DMS Solutions. It should be mentioned that both companies had submitted prices that were almost double than what had been submitted by Gamutso Investments.
DMS Investments, whose price was E483 060, did not win the tender despite the fact that they had scored an impressive 87 per cent. This was a percentage higher than what was scored by Gamutso Investments which recorded 86 per cent.

It should be pointed out that Mhlongo precisely mentioned that the intention to award does not constitute a contract.
“It must be noted that, in terms of section 45 (2) of the Act, the contract award decision does not constitute a contract,” Mhlongo advised.
It should be mentioned that the capital city’s municipality has seen an increase in revenue of eight per cent to stand at E113.9 million during the financial year ended March 2017.
The outcry by the ratepayers association to the effect that the municipality hikes rates above inflation to rake in more money seems to have been confirmed, as by their own admission, the municipality reported that rates were main contributor of to the increase in revenue from E113 871 837 from 83 687 512 in the financial year ended March 31, 2016.

This revenue comprises of operating income which stood at 14.4 million, grants and subvention which was reported to be 9.2 million and revenue which was at a whooping E90.3 million.
“The movement in revenue is largely as a result of an eight per cent increase in rates revenue during the year,” read the financial results in part.
It has been pointed out that operating costs increased due to depreciation charges as a result of additions to roads infrastructure. It was reported that repairs and maintenance increased due to pothole patching and vehicle maintenance costs.