Court battle over suspected procurement irregularities in key employment programme

The department of co-operative governance and traditional affairs is embroiled in a court battle over alleged procurement irregularities in one of SA’s largest and most successful employment programmes.

Scathing affidavits suggest that the department may have flouted its own rules and procurement processes when appointing 11 new implementing agents to manage its Community Work Programme – a national employment project with a R12bn budget.

At stake are the livelihoods of 250,000 low-wage workers employed across the country through the programme.

The programme is a government-funded initiative designed to cushion the poorest of the poor by providing regular low-skilled work opportunities.

Participants are managed at various sites across the country by implementing agents‚ normally NGOs, who manage a sizeable chunk of the programme’s budget.

The programme‚ rolled out in 2008‚ continued largely scandal-free until April 2018 when the Seriti Institute – the most experienced implementing agent contracted by the department since the programme’s inception – lodged an urgent court application.

Citing non-compliance with various procurement regulations‚ Seriti – whose bid for the new three-year contract was declined from the start – approached the high court in Pretoria to set aside the department’s decision and review the entire procurement process.

Seriti’s supplementary founding affidavit‚ after it inspected the department’s record of decision for the appointments‚ reveals “extensive material irregularities”.

A verification committee set up by the department found that a host of red flags emerged at the outset regarding NGOs that were eventually appointed as implementing agents.

One of them‚ Out the Box Foundation‚ is “a small organisation based in Bela-Bela township that appears to be struggling to stay afloat”.

The report states: “Of particular concern is the location and state of their offices.

“The office is a back [outside] room in a private home.

“There is an evident capacity challenge‚ as there are only four people who are officially contracted‚ and the rest of the staff consists of volunteers.”

The committee found that another successful bidder‚ Icembe Foundation‚ did not have any prior experience in government work or an existing governance structure.

Seriti also alleges that another successful applicant‚ Beulah Africa Development‚ which partnered with another company for the tender‚ was not included in the list of pre-qualified bidders; and that the bids of eight NGOs eventually appointed as implementing agents were found to be noncompliant and had been disqualified at the outset.

Seriti CEO Juanita Pardesi said the organisation was one of two that piloted the programme in 2008 and had been an implementing agent from then until March 2018.

“The Seriti board feels strongly that we need to bring to light the irregular process followed in awarding the tenders to manage the implementation of a public employment programme‚” Pardesi said.

Co-operative governance spokesperson Legadima Leso said the department would not comment while the matter was before court. –