In October 2019, the Government Pensions Administration Agency (GPAA) gazetted a tender to lease accommodation space for the duration of nine years and 11 months.
The tender was awarded to Mpisane Properties which went up against Public Investment Corporation (PIC) and Eris Property Group.
Questions are being asked as to how a company established in 2017 was awarded a tender worth over R 988 million.
Bongani Bingwa chats to GPAA acting chief financial officer Phinda Nondabula to give more insight on the matter.
The tender as it was advertised was for the building itself, parking, security and for the maintenance of the building. The GPAA doesn't have the budget to build its own building.— Phinda Nondabula, Acting chief financial officer - Government Pensions Administration Agency
He says the only available option for the organisation was to lease the building.
The building we are in now is an old heritage building where we can't do many changes in line with the various legislations. It has been declared unsafe and some parts of the building are old. We cannot do much renovation in that building.— Phinda Nondabula, Acting chief financial officer - Government Pensions Administration Agency
The tender was opened to everyone and evaluation criteria was given to every bidder who all attended a compulsory briefing session, he explains.
All companies were required to produce funding that says they would be able to build the building within the three years that is required.— Phinda Nondabula, Acting chief financial officer - Government Pensions Administration Agency
Listen below to the full conversation: