Why did Gauteng Department of Sports choose an Eastern Cape company for a local tender?

Issued by Kingsol Chabalala MPL – DA Gauteng Shadow MEC for Sports, Arts, Culture and Recreation (SACR)
16 Oct 2024 in Press Statements

The Gauteng Department of Sports, Arts, Culture, and Recreation (SACR) has failed Gauteng entrepreneurs by awarding a tender for local businesses to Xaba Promotions, a company based in the Eastern Cape. Despite the advertisement stating below, “Only Gauteng-based organisations may apply and projects to be implemented in Gauteng.”

This information was revealed by the Gauteng MEC for Sports, Arts, Culture and Recreation (SACR), Matome Chiloane, in a written reply to the DA’s questions tabled in the Gauteng Provincial Legislature (GPL).

According to MEC Chiloane, Xaba Promotions was awarded a tender of R3 500 000 to organise one tournament in the 2023/2024 financial year. The tournament was supported through the Provincial Bidding and Hosting Committee in response to the 6th Administration’s elevated priorities and GGT2030 imperatives, which sought to strategically host events that attract investment into the province, in particular, TISH areas. In the same reply, the MEC indicated that Gauteng has 12 promoters as per the Boxing South Africa 2024-25 list.

In a previous reply earlier this year, the former MEC of this department, Morakane Mosupyoe indicated that no money was spent on this event.

The DA is questioning why a tender advertised to “generate immediate and long-term economic benefits and align with the Gauteng City Region’s plan of Growing Gauteng Together (GGT2030),” was awarded to a company based in the Eastern Cape.

See the advertisement here.

Surely, this tender could have been used to support one of the 12 boxing promoters in the province, rather than being awarded to a company that is over 800 kilometres from our province and provides little benefit for Gauteng residents.

The DA finds the awarding of this tender suspicious and calls for an urgent inquiry into the matter. There can be no excuse for this department to rob Gauteng’s local businesses of opportunities to grow the provincial economy and create jobs.

The DA government will ensure that tenders intended for local businesses are not redirected elsewhere, where they cannot benefit Gauteng companies or residents.

The DA will continue to seek answers on this matter through follow-up questions and ensure that the department is held accountable for this tender, which we suspect was not awarded fairly and transparently.

Gauteng businesses deserve answers, and we will make sure they get them.