City slated for R2bn cleaning tender awarded to Joburg company

The City of Cape Town has been slammed for selecting a Johannesburg-headquartered company to receive a R2 billion tender for cleaning and security services across the metro's transport hubs.

The process has been described as a slap in the face of local businesses, while unemployment runs rife. 

On Tuesday the City kicked back on claims that they betrayed residents, saying it received 16 bids with the company, CBRE Excellerate, having an office in Cape Town despite its head office in Johannesburg. 

The ANC’s Faiez Jacobs, a former chairperson at Portfolio Committee on Small Business Development in the National Assembly, said local businesses have been overlooked.

“When the City of Cape Town awarded a R2 billion tender to a Johannesburg-based company for cleaning and security services across our transport hubs, it didn’t just overlook a few local businesses. It slammed the door shut on thousands of unemployed Capetonians, on hundreds of community-based enterprises, on our own city’s dignity and economic sovereignty,” he said.

The tender is for an eight-year contract period, and seeks to provide services at the City’s public transport interchanges, MyCiTi stations, and areas where MyCiTi/public transport services operate. 

These services include security, cleaning, pest control, hygiene, landscaping, infrastructure maintenance, cashier services, facility coordinators, and helpdesk services

Mayco member for Urban Mobility, Rob Quintas, has defended the decision, saying the tender was widely advertised.

“The company being referred to is registered in South Africa, with their head office in Johannesburg and an office in Cape Town. In terms of legislation the City may not restrict the competitive process to only local suppliers, and as such, and where applicable, a contractual condition may require that they establish local presence in order to execute the contract,” he said.

He said the Public Transport Facilities Management tender was still moving through the City’s Supply Chain Management processes.

“Tender 385S/2022/23 is progressing lawfully.

“Once the Supply Chain Management process has been finalised, the City will be able to share further details.

“The services the tender provides is to ensure that all public transport users can access a clean, dignified, and safe facility." 

Siyabulela Mamkeli, GOOD Party councillor, said as far back as 2015, close to 100 taxi operators  underwent business development training at the University of Cape Town, with courses designed to equip them to manage large-scale transport operations and extended services under the MyCiTi banner.

"The issue with the R2 billion contract awarded to CBRE Excellerate is not that the company's head office is based in Johannesburg, but that the City of Cape Town has abandoned its own commitment to empower local taxi associations by excluding them from the services covered by this contract.

“For over a decade, the City has claimed it was committed to transforming and empowering the minibus taxi industry through its Minibus Taxi Transformation Strategy."

Congress of SA Trade Unions (COSATU) provincial secretary, Malvern de Bruyn, said he was shocked by the decision.

"It’s a betrayal to the people of Cape Town and the Western Cape. How will small businesses benefit?

"We should call for an investigation into the tender process.”

Makhosandile Tumana, public relations officer for the SA National Taxi Council said an opportunity was missed for the minibus taxi industry.

“We have long been arguing with the City for taxi ranks to be given to local associations to clean and provide security services through the companies that regions established with the assistance of the Mobility department."

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