Trea­sury wants to curb ten­der de­vi­a­tions

Cape Argus - - NEWS - Siyabonga Mkhwanazi

TREA­SURY wants to cut down on de­vi­a­tions from pro­cure­ment pro­cesses in gov­ern­ment, as it would re­duce the ten­der bill.

Act­ing chief pro­cure­ment of­fi­cer Willy Mathe­bula told mem­bers of the stand­ing com­mit­tee on fi­nance they have pro­posed mea­sures.

In the 2016/17 fi­nan­cial year, de­vi­a­tions from nor­mal ten­der pro­cesses cost R37 bil­lion.

Depart­ments and state-owned en­ti­ties (SOEs) ap­ply for a de­vi­a­tion if there is an emer­gency and the ten­der can’t be pro­cessed through nor­mal com­pet­i­tive bid­ding. On top of the list was Eskom with R31bn ap­proved by Trea­sury fol­lowed by Sars with a de­vi­a­tion of R1bn.

The Depart­ment of Ru­ral De­vel­op­ment and Land Re­form asked for a de­vi­a­tion of R685 mil­lion. It was fol­lowed by the South African So­cial Se­cu­rity Agency, whose ten­ders worth R405m were not up for com­pet­i­tive bid­ding.

Transnet was also granted a de­vi­a­tion of R380m.

Mathe­bula also told the com­mit­tee the other depart­ments and SOEs were Home Af­fairs, with a de­vi­a­tion of R347m, and Wa­ter and San­i­ta­tion with R334m.

The SA Lo­cal Gov­ern­ment As­so­ci­a­tion asked for a de­vi­a­tion of R268m and the Road Ac­ci­dent Fund for R154m.

Dikeledi Mahlangu of the ANC warned that this was the tip of the ice­berg, as Trea­sury had not pro­vided them with fig­ures for mu­nic­i­pal­i­ties and pro­vin­cial gov­ern­ments. She said there were also de­vi­a­tions in those two spheres of gov­ern­ment and they could be run­ning into fur­ther bil­lions of rand.

Mahlangu said Trea­sury must give a de­tailed re­port on the depart­ments and SOEs who ap­plied for de­vi­a­tions. Mathe­bula said they now wanted to strengthen their mon­i­tor­ing mech­a­nisms.

Peace Mabe of the ANC said the pro­posal by Trea­sury to deal with de­vi­a­tions was not ef­fec­tive.

She said they needed more strin­gent mea­sures to cur­tail it.

She said spend­ing bil­lions of rand in de­vi­a­tions in one fi­nan­cial year was a lot of money.

Mathe­bula said this was the prob­lem they were sit­ting with be­cause depart­ments and SOEs come to them ev­ery year to ap­ply for de­vi­a­tions.

There were var­i­ous rea­sons why the en­ti­ties wanted to de­vi­ate from com­pet­i­tive bid­ding.

He said they wanted to tighten up mech­a­nisms to pre­vent fraud and cor­rup­tion in the de­vi­a­tion pro­ce­dures.

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