OUTsurance regretfully confirms that the tender process for the awarding of the Pointsmen contract has not been completed by the City of Johannesburg (CoJ) prior to the deadline of 31 August 2019.
Traffic Freeflow (TFF), which initiated and runs the project, and who employs the almost 170 Pointsmen in Johannesburg, was granted an extension to operate the Pointsmen until 31 August 2019. This extension follows a prior extension granted due to the tender process previously also failing to come to a conclusion within the CoJ’s deadline.
Danie Matthee, CEO of OUTsurance, comments, “Unfortunately, without a contract in place, the Pointsmen cannot continue to work as they would be doing so in violation of the National Road Traffic Act. OUTsurance and TFF have always respected the rule of law and regrettably the Pointsmen, whose contracts ended on 31 August, are no longer employed. OUTsurance, together with TFF, will endeavour to employ some of these staff in Tshwane where there is an ongoing relationship with the council.”
The awarding of the Pointsmen contract has been the subject to a tender process over the past year.
The key dates associated with the process are listed below:
- 23 August 2018 - CoJ announces that the TFF contract would not be renewed.
- 28 August ’18 - CoJ announces that they will be publishing a new tender.
- 31 August ’18 - Extension is delivered to the TFF offices.
- 24 October ’18 - Tender is published with a due date of 28 February 2019.
- 20 November ’18 - TFF submits tender documentation in full.
- 18 February 2019 - CoJ confirm tender due date won’t be met.
- 27 February ‘19 - CoJ grants another 3-month extension.
- 21 May ’19 - Mr Zondo, TFF Chief Executive, writes to Mayor Mashaba.
- 28 May ’19 - Extension granted until 31 August 2019.
- 14 August ’19 - CoJ advises that tender documents require additional information.
- 16 August ’19 - Additional info provided.
At this stage, after a year has elapsed, it remains unclear if the tender will be awarded.
OUTsurance has remained the anchor sponsor of the Pointsmen Project since its inception almost 14 years ago, and to date has invested over R200 million – with a current contribution to the CoJ, via the project sponsorship, in excess of R20 million per year. These funds are used to pay for salaries, infrastructure and related expenses for the successful operation of TFF.
Some key TFF facts are listed below:
- TFF is a South African company that has kept the Gauteng roads safe, while alleviating traffic congestion over the last 14 years through its Pointsmen Project.
- TFF was started as a job-creation program, aimed at developing previously disadvantaged and unemployed youth.
- TFF is a Level 2 BBBEE company and its Chief Executive, Bheki Zondo, is the majority shareholder.
- TFF currently employs 161 Pointsmen, as well as nine support staff and managers in Johannesburg.
- TFF is required to go through a tender process to provide the free service to the city.
Danie Matthee further commented, “Whilst it remains the CoJ’s prerogative to award the tender or not, it is regrettable that this service, which was provided at no cost to the CoJ and employs 170 people, has been ended. I would like to thank TFF, its staff and management for their many years of phenomenal service to the motorists of Johannesburg. Your positive impact on our roads will be missed.”