Business Day

Open tender system saves R1.2bn

• Premier, MEC hail it as a huge success but cautious DA says more can be done to curb graft

- Claudi Mailovich Political Writer mailovichc@businessli­ve.co.za

The Gauteng government’s open tender system has saved the province R1.2bn in irregular expenditur­e in the past financial year, finance MEC Barbara Creecy says. In the open tender system the public is allowed to attend the adjudicati­on process. All tenders valued from R2m upwards are adjudicate­d by this system.

The Gauteng government’s open tender system has saved the province R1.2bn in irregular expenditur­e in the past financial year, finance MEC Barbara Creecy says.

In the open tender system the public is allowed to attend the adjudicati­on process. All tenders valued more than R2m are adjudicate­d by this system.

Faced with increasing corruption and lack of transparen­cy in the awarding of tenders in the province, Premier David Makhura spearheade­d the establishm­ent of the system.

Creecy said since its launch the system had adjudicate­d over more than 75 projects with a combined value of R15bn. She announced in 2016 that the province would introduce legislatio­n that would make the use of the open tender system.

On Tuesday, ahead of the budget vote of the provincial treasury, Creecy said that the bill had been published for public comment and would probably be tabled in August 2018.

“The open tender system saved Gauteng R1.2bn in irregular expenditur­e by detecting noncomplia­nce in 26 tenders that were cancelled before award — an indication that this innovation is working to promote clean government and transparen­cy in the public sector,” Creecy said.

Makhura recently announced that all allegation­s of financial irregulari­ties and financial misconduct raised in previous forensic reports by the provincial treasury and not acted on, be referred to the Special Investigat­ive Unit.

“Until those responsibl­e for financial irregulari­ties face consequenc­es for their actions we will never rid the public service of this scourge,” Creecy said.

Interventi­ons taken in the provincial health department, another one of Makhura’s headaches that has been responsibl­e for the biggest scandal during his tenure, has resulted in the payment of all its service providers with accrued invoices of under R10m.

Creecy said during her medium-term budget policy statement in 2017 that the state of the department’s finances was a major risk to the public purse.

In terms of the district and local municipali­ties the provincial treasury oversees, Creecy said the department remained concerned about the high levels of irregular expenditur­e, as well as the financial sustainabi­lity of the municipali­ties.

She said she had asked Finance Minister Nhlanhla Nene to place the issue of financial sustainabi­lity of municipali­ties on the agenda when the provincial finance MECs meet the minister in August.

Adriana Randall, DA finance spokeswoma­n in Gauteng, said the open tender system was assisting in tackling corruption but that subjectivi­ty in the bid adjudicati­on committees could still lead to corrupt contracts and awarding of contracts to cadres.

Randall said Gauteng did not have a supplier rotating system in place to prevent the same suppliers from continuous­ly receiving contracts.

She said maladminis­tration and corruption in municipali­ties remained a huge concern.

 ?? /Freddy Mavunda ?? Transparen­t system: : Gauteng finance MEC Barbara Creecy, who introduced an open tender system in 2017, says progress is being made in curbing graft.
/Freddy Mavunda Transparen­t system: : Gauteng finance MEC Barbara Creecy, who introduced an open tender system in 2017, says progress is being made in curbing graft.

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