1. Transnet did not withdraw from negotiations with Neotel.
2. Transnet has concluded two contract with Neotel (Pty) Ltd, one for network services and the other for the closed circuit television vision (CCTV).
Network Services contract
In December 2014, Transnet awarded a five-year contract to Neotel to provide network related services, following an open and competitive procurement process. The award met all our stringent governance requirements and was reviewed by a firm of independent internal auditors. The contract was awarded in line with the Preferential Procurement Policy Framework Act (PPPFA) principle of 90/10 as they were the highest scoring bidder (first ranked bidder) in terms of Price and Preference (B-BBEE).
The following bidders responded to the Network Services Request for Proposal (RFP) that was issued by Transnet Group in 2013:
CCTV contract
The CCTV contract was awarded to Neotel (Pty) Ltd through a confinement procurement process which was approved by the appropriate delegated authority/committee. A confinement is a recognised procurement mechanism provided for in the Transnet Procurement Procedures Manual (PPM).
An analysis of our business requirements revealed that the existing CCTV equipment had reached the end of its useful life and needed to be replaced. It was crucial for Transnet to urgently rectify the situation for the following reasons:
3. Transnet is not at liberty to provide details of commercial terms with individual suppliers in line with confidential contractual arrangements and protecting the company’s pricing strategies. NW126E
Mogokare Richard Seleke Lynne Brown, MP
Director-General Minister of Public Enterprises
Date: Date: