EC firms ‘unfairly’ cut out of Covid-19 tenders

Address requirement used for some exclusions in fact no longer applies

The provincial health department has disqualified more than 300 Eastern Cape companies that put in bids for Covid-19 projects because they did not attach a proof of address to their documents.

However, several company directors told the Dispatch their documents had been in order.

Furthermore, procurement regulations have been relaxed by the Treasury, which confirmed as long as a company is registered with the central supplier database, no proof of address is necessary.

The Dispatch has seen the list of disqualified companies, some of which have a national footprint.

One director, who asked to remain anonymous, said: “This is shocking. These people [government] have done a copyand-paste to say all 300 companies were disqualified because they did not have proof of address.

“That’s a lie. My company had everything and this bidding was done thoroughly.”

A second director said they had qualified for the work even without proof of address.

“Treasury had relaxed a number of regulations allowing companies who are registered with the central supplier database to get an opportunity to work,” he said.

Eastern Cape Treasury spokesperson Pumelele Godongwana confirmed this.

“Due to the speed with which the country needed to respond to Covid-19, National Treasury took a decision to relax some of the regulations to allow for expedient procurement of some of the supplies needed to fight the pandemic,” she said.

Godongwana said provincial Treasury issued circular 5 of 2020/2021 to all PFMA institutions and entities in the Eastern Cape.

“The institutions were afforded an opportunity to conduct procurement of Covid-19related items without preapproval from treasuries.

“They are, however, required to submit reports to treasuries for any transactions that exceed R1m.

“According to supply chain management regulations, if any supplier is appropriately registered on the central supplier database, and meets all the requirements of a tender specification and passes the evaluation process, then nothing prevents them from being appointed to do business.”

Provincial health spokesperson Siyanda Manana said the department had received more than 600 bids for supply and delivery of personal protective equipment.

Manana said the process was evaluated using conditions outlined in the bid document.

“The department of health upholds a fair and transparent system in procurement, such that Treasury was requested to provide oversight on the administrative compliance stage [which includes the proof of address complaint].

“Prospective bidders are encouraged to follow bid requirements applicable to bids they are responding to as outlined in respective bids,” said Manana.

He said suppliers were encouraged to lodge disputes through legal processes and escalate perceived unfairness to state agencies handling forensic investigations on Covid-19 procurement.

Godongwana said there were channels for those who were not satisfied to lay complaints.

“At this point, we are unable to confirm or deny any alleged irregularities relating to Covid19 procurement as the process was decentralised.

“But, as you are aware, all procurement relating to Covid19 is being reviewed and will be investigated if anomalies are found.

“However, we appeal to concerned parties to raise their concerns with provincial government through the anti-corruption reporting channel provided” by the premier’s office.