By Johnathan Paoli
Suspended City of Tshwane chief financial officer (CFO) Gareth Mnisi has defended his role and the actions of the Bid Adjudication Committee (BAC)’s handling of security contracts worth R2.9 billion with the city, despite his close relationship with suspended Gauteng Organised Crime Sergeant Fannie Nkosi.
Resuming his testimony before the Madlanga Commission of Inquiry on Tuesday, Mnisi was questioned on two tenders, on providing security to sites across the city, successful bidders of which include a company linked to Nkosi’s brother Bheki Nkosi, Ngaphesheya Security Services.
Questioned on the general security tender (TMPD 03-2024/25), Mnisi defended the BAC’s decision to cancel, saying there were “material irregularities”, including a probity audit report that indicated fundamental flaws with the tender process.
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The commission previously heard that TMPD 3 came in the wake of a previous tender (TMPD 02-2016/2017) which saw 22 companies, including Ngaphesheya, El-Shaddai Security and Gubis85 Solutions win out.
The BAC resolution listed only three reasons for cancelling the tender: ambiguous pricing schedule requiring blank spaces to be completed; armed guard requirements which disadvantaged bidders without firearm licenses; and no specifications on the Private Security Industry Regulatory Authority (PSIRA) pricing guidelines.
This proves important in light of the new tender (TMPD 07-2025-26) still being under evaluation; the old TMPD 2 tender continues to operate under its current extension until 30 June.
Mnisi acknowledged that the BAC resolution listed only three reasons, but maintained that additional grounds were contained in supporting documents, including the probity audit report.
“I see these are the three reasons that are mentioned. They are not the only reasons. The probity report is an attachment, we just don’t repeat them. That’s how BAC operates,” he said.
However, evidence leader Matthew Chaskalson challenged this, pointing out that the official resolution itself made no reference to those broader findings.
“You keep on speaking about additional reasons, but if one looks at the resolution, which is the decision of the committee, these are the only reasons given,” Chaskalson said.
The commission heard that the BAC relied heavily on a probity audit, which included picking up potential fraud in its findings, with the CFO coming under pressure for failing to trigger a formal fraud investigation despite accepting those findings.
“From our perspective, there needs to be an investigation firstly on that, which will now give me guidance that indeed fraud was committed. I don’t have sufficient evidence to make that conclusion. The only conclusion I can make is that there’s an irregularity here, it’s a major cause of concern,” Mnisi said.
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Commissioner Sesi Baloyi rejected that reasoning, arguing that the probity findings themselves pointed to fraud.
“I don’t understand why you have a difficulty with conceding that that constitutes a fraud. That must be investigated. Not only because you’re chairperson of the BAC, but also as CFO, you are responsible for the integrity of your procurement processes,” Baloyi said.
The inquiry also probed serious lapses in document control during the tender process.
Mnisi confirmed that six bid documents went missing but insisted internal controls were still functioning.
Chaskalson challenged Mnisi’s response, noting that while the BAC recommended improved controls, it did not initiate an investigation into what appeared to be potential fraud.
“But you didn’t see fit to put in place mechanisms to investigate what appeared to be an out-and-out fraud,” Chaskalson said.
“At that point in time, we confined ourselves to procurement-related matters. But in hindsight, I agree with you, possible further steps should have been taken,” Mnisi replied.
In terms of justification for the cancellation, Mnisi came under fire for what he claimed was a fundamental inconsistency regarding the fire licence requirement.
“The specifications had two points that were contradictory to one another. Some areas do not need armed guards, however, in the mandatory requirements, bidders who don’t submit firearm licences must be disqualified,” he said.
Mnisi argued that this contradiction could have exposed the city to legal challenges from unsuccessful bidders.
But Baloyi pushed back, saying this was not a valid ground for cancelling the tender.
“I don’t accept the reason that you’re offering that that was a valid reason,” she said.
Mnisi stood firm, insisting the concern formed part of a broader pattern of flaws identified by the BAC.
“At this point in time, I was convinced that this is a valid reason as part and parcel of the myriad of other irregularities,” he said.
The commission also heard that one of the BAC’s stated reasons, relating to silence on PSIRA pricing guidelines, was ultimately conceded by Mnisi to be invalid.
The commission continues.
