Scopa takes aim at suspect tenders in wake of nationaltreasury report

SIYABONGA MKHWANAZI

THE national Treasury has warned officials of departments and state-owned enterprises not to expand on, or deviate from, legislation in the awarding of tenders.

The systematic awarding of “sham tenders” had led the Treasury to set up a task team to review procedures and processes to manage tender-deviations and expansions, to prevent abuse of the system.

The task team is to hand its findings to auditor-general Kimi Makwetu.

In a report presented to the Standing Committee on Public Accounts (Scopa), The Treasury called for tighter controls over tenders. Scopa chairperson Themba Godi said the report highlighted pitfalls in the system, revealing that tenders amounting to R4 billion were awarded through deviations and expansions in two quarters of 2017/18.

He said the Treasury would report to Scopa regularly so the committee could examine flawed tenders and prevent abuse in the system.

“The Treasury is going to report to us on an ongoing basis to eliminate this. The figures are staggering,” said Godi.

The report, from the Treasury’s office of the chief procurement officer, listed 20 departments and state-owned enterprises (SOES) that asked for tender-deviations and expansions during the last two quarters of 2017/18.

In one department tenders that deviated from procedure amounted to more than R372 million in one quarter, and R362m in the following one.

In one SOE such tenders amounted to more than R400m in one quarter. the Treasury said there had been an “abnormal” increase in the number of suspect tenders awarded by departments and SOES in a single quarter.

Godi said deviations and expansions from procedure could only take place when there was an urgent need.

“Instead of being used for an emergency, they (officials) use deviations under normal circumstances and as a conduit for favoured companies.

“Departments will go to the Treasury for a deviation while the contract with the supplier is still running, and the Treasury will say ‘Don’t do it’, but they go ahead and do it,” he said.

The Treasury report pointed out that that had happened.

“Some accounting officers and authorities procure through deviation even though National Treasury has said no to such a deviation,” it said.

“Some accounting officers and authorities do not request prior approval from the Treasury for single-source procurements... (and) some accounting officers and authorities conduct sham tenders to eliminate competitors.”

Godi said: “The Treasury will be reporting to us on a quarterly basis because we want to nip this in the bud.”