Monteco Solutions Awarded 13 tenders worth over P98 million since formation in 2017
Monteco Solutions (Pty) Ltd, has enjoyed dominance of tenders awarded by the then Public Procurement and Asset Disposal Board (PPADB) and the Ministry of Health through Central Medical Stores, raking over P98 million in the last five years, Parliament has been told.
On Monday Minister of Finance Peggy Serame revealed that the total value of the 13 tenders awarded to Monteco Solutions since its formation in 2017 to date is P98 139 082.55, representing 6.9 percent of the total value of tenders awarded.
Member of Parliament Dumelang Saleshando had asked Serame to state the number of government tenders and corresponding values of tenders awarded to Monteco Solutions (Pty) Ltd - a company associated with President Dr. Mokgweetsi Masisi’s sister Boitumelo Phadi Mmutle.
Serame said there was no government tender awarded to Monteco Solutions before October 2014, however, that two tenders valued at P13 898 736 were awarded to the company between October 2014 and April 2018.
She explained that these tenders were awarded as part of the time framework with total value of P166 331 777.38, of which only 8.4 percent was awarded to Monteco Solutions.
She said these tenders were for procurement of condoms (Open Domestic Bidding) and surgical and medical supplies– Dressings 3 (Open Domestic Bidding).
Of the latter, there were five other companies awarded P116 533 841.38), while Monteco Solutions (Pty) P3 973 536, translating to only 3.3 percent.
While 11 tenders valued at P84 240 346.55 were awarded to Monteco Solutions from April 2018 to date. Out of these, three tenders were awarded under contract framework, while eight were once-off contracts.
Serame said the 11 tenders awarded to Monteco Solutions represented 6.7 percent of the total tenders awarded for procurement of ARVs, Surgical and Medical Supplies and other health service products of P1 258 415 859.84.
Of this amount, one of the tenders for ARVs amounting to P773 478 577.84 was an open international bidding method for which nine companies were awarded, of which Monteco Solutions was awarded eight P8 400 669.36 or 1.1percent while the other eight companies shared P765 077 908.48.
She said that in the other tender for procurement of surgical and medical supplies – Dressings 3, amounting to P38 219 882.12 was a direct bidding method for six companies which were previously awarded a similar tender in February 2018.
From this procurement, Monteco Solutions (Pty) was awarded P662 256, representing only 0.2 percent, while the other five companies were awarded P237 557 626.12. She revealed that Monteco Solutions (Pty) was awarded tenders (framework contracts and short once-off Request for Quotations) for the MoH.
Framework contracts are of a duration of two to three years, and after signing of the contract, the Procuring Entity (PE) would only procure the quantities they required for the contracted periods at the rates approved by the then PPAD Board and its Committees.
It did not mean that the PE had an obligation to procure all items to the total value of the respective awards.
She said the tender for the Procurement of Surgical and Medical Supplies – Dressings 3 awarded on the 9th December 2021, was done through a direct appointment of six companies that had been previously contracted for a similar tender, Monteco Solutions being one of them.
The basis for the direct appointment decision was that there was insufficient time for any other procurement method to be used as the required products were meant to address COVID-19 health related issues.
The Procuring Entity was also in the process of formulating and preparing all its tender documents (ITTs), including for the Dressings, to accommodate changes that had taken place in the market owing to COVID-19 supply chain disruptions.
The PPADB noted that the Procuring Entity was in consultation with stakeholders to incorporate new developments and that ITTs would only be finalised following conclusion of the said engagements.
The Board also considered the fact that these suppliers were already familiar with the products and therefore justified under the circumstances to appoint them for the short period requested.
This was done in line with the then PPADB Regulation 61 (1), which provided that “the direct procurement method may be used where the selection of supplier is conducted on a sole supplier basis without competition, such as where- (a) there is insufficient time for any other procurement method due to an emergency situation and (f) where it is justified in the circumstances”.
Serame said according to information extracted from the Companies and Intellectual Property Authority (CIPA), Monteco Solutions (Pty) Ltd was first registered on 24th February 2017 and its only director and shareholder since then to date is Boitumelo Phadi Mmutle.
“There is no record of the company having ever changed its directorship and shareholding. The company first registered for Codes with PPADB on 27th June 2017.”