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Legacy Programme - Local Procurement

As part of the Medupi Legacy Programme concerted efforts are being made to design procurement strategies to benefit the local emerging black suppliers. Eskom and its contractors have placed contracts to the value of approximately R1 billion with Lephalale and Waterberg District-based suppliers since the commencement of the Project. In this regard, Eskom alone has a procurement expenditure of R202 million and approximately 70% of this has been placed with (BWO) suppliers.

Feeding Contract with Lephalale Site Services (LSS)

  • Contract awarded to Tsebo Outsourcing Group in December 2009 for a period of 36 months.

  • The value of the contract is R445, 942, 857.00. One of the ASGISA requirements was the formation of a Joint Venture with a Lephalale Black owned company.

  • Tsebo Outsourcing Group through its operating division, Fedics Site Services, had earmarked Mooncloud 44 (Pty) Ltd a Lephalale Black owned company to be its Joint Venture partner. Mooncloud is constituted by forty six (46) Close Corporations owned in the majority by Lephalale Black women.

  • New company is called Lephalale Site Services (LSS) with 50% equity each. Therefore 50% of the profit would have been retained within Lephalale.

  • The objective of the Joint Venture iss to ensure that well-established and experienced partner mentors, coaches and shares skills with the Lephalale-based partner.

  • Approximately 50% (R223 million) of the value was expected to be sub-contracted to B-BBEE compliant suppliers.

  • Forty percent (40%) of the value which is R178, 4 million was expected to be spent with suppliers preferably in the Lephalale area before the Waterberg District and/or Limpopo Province.

  • Sub-contracting opportunities for local businesses that were not necessarily part of the consortium.

  • Approximately 25 000 meals are being served per day at the peak of the Project.

  • Approximately 300 direct jobs expected to be created.

  • Hundred and forty (140) personnel from Lephalale to be trained as Hygienists, Nutritionists, Dieticians, etc. Skills transfer, enterprise development and CSI/SED were automatic spin-offs.

Multiplier (knock-on) Effects of Feeding Contract

The appointed supplier claims to have developed the following Black suppliers through procurement and training intervention:

  • Bustique 336 JV (51% BWO) supplies meat – R25 million spent on them by November 2012

  • Indochem/Tiespro JV (51% BWO) supplies dry goods – R20,4 million spent end of November 2012  

  • Bustique 334 (100% BWO) supplies transport services – R2.9 million spent

  • Clorpique 154 (51% BWO) supplies emergency packs – R4 million

  • Lidonga (51% BWO) supplies dry goods – R7,3 million

  • Dizocube/QTique (51% SBE) 137 JV – R3,6 million

  • Kgoshi ST  (100% SBE) – R1,4 million

  • Tauwfontein Dairy (51% SBE) – R39 million

  • Tshinakaho supplies vegetables (50% BYO) – R2,4 million

This information as shared by the supplier is still to be verified by an independent auditor.

Business Development

Mooncloud 44 (Pty) Ltd has acquired the following businesses in its name:

  • Tawana Lodge, a 14 bedroom a Game Lodge, 7 km south east of Lephalale on the Thabazimbi road

  • Joey's Lounge, a restaurant in Onverwacht

  • A 30 rooms bed and breakfast in Ellisras

  • A farm as well as majority shares into Taufontein Farm

  • Beaufort Game Farm – 40km East of Lephalale

  • Swartklip Dairy – Northam  (150km South-West of Lephalale)

  • 9 ha plots- 1km from Lephalale CBD

  • 2 x 3-bedrooms houses in Lephalale

Employment Statistics as at end of November 2012

The supplier is employing 310 employees and out of these 228 are Black women. This is 73.5% of the total number of employees. The Black Youth numbers are 178 employees, which is 57.4% of the total number of employees. There are also 26 Black people living with disability who are 8.4% of the total number of employees.

Marapong Contractors' Village Laundry Contract 

  • Valued at just under R7 million and was awarded to wholly Black woman owned local business, Maekga Mekia Cleaning Services.

  • Black woman worked for 14 years as a cleaner for a cleaning contractor in Matimba

  • It currently employs 13 people from Lephalale

  • Eskom purchased the laundry equipment to ensure that Black woman bidders stood a chance in the bid.

Eskom Housing Security Contract             

  • Valued at R17 million and was awarded to a wholly Black woman owned local business,   Mulanga Security and Training.

  • The Contractor is currently employing 90 security personnel, mostly from Lephalale and the remainder are from the rest of Limpopo.

  • The Contractor has bought vehicles and is becoming one of the most professional security services company within Lephalale.

General Maintenance Services on Site

  • The contract value is R20 million and was awarded to a 70% Young Black Woman, family owned local business, Gazide and Thebe

  • The Contractor is employing 48 people and is one of the most recognisable general maintenance contractor within Lephalale

Marapong Contractors' Village Housekeeping Contract

  • The contractor started as an Event Management and Catering business.

  • It currently employs 127 people from the area. 99% of the employees are Black women and the Contractor wholly Black woman owned local business.

Medupi Housing General Maintenance Contract

  • Contract is worth R 25 million and was awarded to a 51% Black woman owned local business.

  • The contractor entails doing electrical, mechanical, civil and other technical maintenance work within the construction site offices.

  • The contractor employs 39 people and all of them are local. It proves that Black woman can own, control and manage business doing technical work.

Gardening and Landscaping Contract

  • The contract is worth R14 million and was awarded to a wholly Black women owned Joint Venture, Mabetinyi and MmaMphetla. Mabetinyi is from Polokwane, whereas MmaMphetla is from Lephalale.

  • The contractor currently has 59 people in her staff and 98% are from Lephalale

Provision of Tuck Shop Services

  • Awarded to a local Black Person Living with a Disability owned supplier, Zimzen CC.

  • Zimzen was also awarded a Car Ports Construction Contract to the value of R2.3m

Miscellaneous Contracts

There are various contracts/purchase orders awarded mainly to the local BWO that are ranging between R100, 000.00 and R2, 000.000.00.

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