A foreign company has secured a controversial but lucrative deal with the Durban metro police in which it is pocketing 50 percent of the total traffic fines collected in the city in exchange for trapping speedsters with hi-tech new equipment.
But the contract - for an unspecified period - with the South Korean-based nine-member Trapeace company has come under review by the city's new Metro Police chief, Eugene Nzama.
Trapeace Hi-tech was granted a contract by the municipality last November in terms of which it would assist the Metro Police with trapping speeding motorists over an unspecified trial period in return for 50 percent of the thousands of rands collected monthly in fines.
However, the brakes were applied on their operation by Nzama soon after he took over the department to allow for the investigation of possible irregularities with the contract and the manner in which the services were being provided.
The matter was forwarded to the auditor-general's office for investigation, but because no compelling evidence of wrong-doing was found on the company's part, the contract was resumed, said Nzama.
Nevertheless, he said, the company's services were being reviewed by city authorities who would take into account the question of whether they were of adequate benefit to the city.
"There are on-going meetings to look at this matter again. Possibly we will open it up for tender, where the same company will be given a chance to re-apply along with any other interested parties," he said.
Nzama, who took up his position in December, said he was not well informed on how the contract had been entered into.
While he confirmed normal tender procedures were not followed, the rationale, in his opinion, was that the company had been given a trial period to show its services.
Derek Naidoo, the deputy city manager for procurement and infrastructure, said things were not going well with regard to traffic issues in the city.
"There is a huge shortfall with regard to traffic solutions, including the collection of fines," he said.
As a result of this, the council would publish a notice of interest inviting companies who felt they could help improve the situation, to apply.
But he added that he did not envisage a situation where local companies would be overlooked in favour of foreign ones.
Steve Jin, managing director of Trapeace, said the contract with the city had not been fixed, and the company was now negotiating a fixed one-year contract as well as fixed remuneration.