ore municipalities than ever are dishing out tenders to companies in which their mayors, councillors, officials and families have stakes – and are not declaring them.
Despite laws forbidding public servants from doing business with the state, and others threatening harsh action against civil servants who don’t declare their financial interests, the Auditor-General’s report on the state of local government books found that 290 municipalities awarded tenders to insiders in 2013/14, up from 278 the year before.
Another glaring indictment on the management of tenders was that the Auditor-General was unable to test whether there were any irregularities in tenders, together worth R1.3 billion, awarded by 73 municipalities and entities, because “the documentation either did not exist or could not be retrieved as a result of poor document management”.
Of the 7 374 tenders, valued at R42.6 billion, that were tested for supply chain management irregularities, R781 million in tenders was awarded to companies belonging to close family members of employees and councillors who did not declare their interests beforehand. The report also found:
At least 4 043 tenders, worth R3.7 billion, were awarded, without any declarations, by 221 municipalities and their entities to companies where state officials had an