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North West municipality spent R38m on shack call centre



The North West municipality coughed up a staggering R38 million for a prefabricated structure that it uses as a call center. The structure, built in Vryburg in the Dr Ruth Segomotsi Mompati District Municipality, has been called the most expensive mkhukhu. The tender for this project was awarded to the company wCyber Solutions who are based in Sandton.

It has caused a huge outcry in the municipality with sources claiming that it is a result of corruption!


According to the invoices seen by City Press, despite spending just over R38 million on the construction, the district municipality is also paying about R1.4 million monthly for the equipment used in the call center.


Most of this equipment has not been delivered yet, however, it is being paid for promptly on a monthly basis. Some of the equipment includes R258 974 per month for 8 Lenovo desktops and R3 758 per month for 8 computer mice. That means that the municipality pays R469.75 for each computer mouse, per month. To put this into perspective, the once-off cost of an entry-level Lenovo computer mouse is R300.


To date, the call center has not performed any services yet - however it does not miss the payment of a monthly recurring invoice. To top it all off, there is another call center in the same yard that is fully operational and has full-time staff employed. DrRuth Segomotsi Mompati District Municipal Manager admits to spending R32 351 for each Lenovo desktop computer amid a R38 million call center scandal.


He mentions that they chose the cheapest tender and that the prices quoted were market related. The other tenders were apparently over R40 million so this was a good deal?

He justified the R469.75 for each computer mouse by saying that this price includes insurance and that if the mouse is faulty, the company that was awarded the tender would replace the mouse.


To date, the call center has not performed any services yet - however it does not miss the payment of a monthly recurring invoice. To top it all off, there is another call center in the same yard that is fully operational and has full-time staff employed. Dr Ruth Segomotsi Mompati District Municipal Manager admits to spending R32 351 for each Lenovo desktop computer amid a R38 million call center scandal.


He mentions that they chose the cheapest tender and that the prices quoted were market related. The other tenders were apparently over R40 million so this was a good deal?

He justified the R469.75 for each computer mouse by saying that this price includes insurance and that if the mouse is faulty, the company that was awarded the tender would replace the mouse.




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