Despite an extensive two-year tender process, three private security companies still managed to secure multimillion-rand City of Cape Town contracts on the basis of fraudulent Tax Clearance Certificates, the Western Cape High Court has found, according to a Weekend Argus report. So serious were the findings made against Okuli Security Services, Comwezi Security Services and Command Security Services SA, that Acting Judge Michael Donen saw fit to grant a punitive costs order against them.

The companies, though, are adamant no fraud was committed and are seeking leave to appeal. However, the city has asked the court to allow it to implement the judgment immediately so further payments did not have to be made.

To date R93m of ratepayers’ money has been paid to the companies. In total, the contracts were worth R350m.

Acting Judge Michael Donen found that because the companies provided the city with ‘demonstrably fraudulent certificates’, the city was entitled to cancel the contracts.

‘Insofar as costs are concerned, applicants’ reliance on false certificates, their obdurate statements that they possessed proof of the validity of the certificates, and their dilatory tactics in resisting the reality, warrants a punitive order for costs,’ the judge added. He has not yet ruled on the companies’ application for leave to appeal or the city’s bid to have his judgment implemented immediately.

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