CityPress - - News - XOLANI MBAN­JWA xolani.mban­jwa@city­press.co.za

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

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