IFP-Led Municipality Accused of Racial Discrimination in R89m Tender Process
A Black-owned enterprise has exposed potentially discriminatory tender practices in the IFP-controlled Amajuba District Municipality. The R89-million wastewater project tender process raises serious questions about economic transformation and equal opportunity in post-apartheid South Africa.
Amajuba District Municipality offices in Newcastle, KwaZulu-Natal, where controversial tender decisions have sparked allegations of discrimination
Systemic Exclusion Exposed in KwaZulu-Natal Municipal Tender
In what appears to be another manifestation of continued economic marginalization in post-apartheid South Africa, the Amajuba District Municipality (ADM) in Newcastle stands accused of deliberately excluding a Black-owned enterprise from a crucial R89-million wastewater project tender.
Pattern of Discriminatory Practices
Mela Okuhle Trading, a Durban-based company, has taken the bold step of reporting the IFP-controlled municipality to the provincial treasury for what appears to be a calculated exclusion from the bidding process. The systematic denial of tender documentation raises serious questions about the municipality's commitment to economic transformation.
"It is our belief or suspicion that Mela Okuhle Trading Enterprise is deliberately being excluded from the tendering process due to unknown reasons," the company stated in their formal complaint to Provincial Treasury MEC Francois Rodgers.
Circumvention of Democratic Processes
In a move that further undermines transparency and fair competition, the municipality hastily awarded the tender to SNA Construction CC on July 21, 2025. This decision came while the mandatory 60-day objection period was still active, prompting legal threats from another affected company, Umpisi Construction and Plant Hire.
Institutional Silence
The municipality's refusal to respond to requests for comment speaks volumes about the lack of accountability in local government structures. This silence reflects a broader pattern of institutional resistance to economic transformation and equal opportunity in public procurement.
Implications for Economic Justice
This case exemplifies the ongoing struggles faced by Black-owned businesses in accessing economic opportunities, even three decades after apartheid. The R89-million Goedehoop wastewater project represents not just infrastructure development, but a crucial opportunity for economic empowerment that appears to have been deliberately withheld.
Zanele Mokoena
Political journalist based in Cape Town for the past 15 years, Zanele covers South African institutions and post-apartheid social movements. Specialist in power-civil society relations.