4.5. Appointment of PISM a) The DWA requested PISM to submit a proposal without following a bidding process. Reasons for not inviting competitive bids were not recorded as required according to DWA Procurement User Manual. b) Although a bidding process was not followed, the DBAC rectified and approved the appointment of PISM on 23 June 2008. c) The proposal submitted by PISM was for an amount of R3 890 740 (VAT inclusive), however the contract was signed for an amount of R4 356 932 (VAT inclusive) and PISM was paid an amount of R4 115 378 (VAT inclusive).