Zondo probe told of aim to abuse system
• National Treasury official suggests new approach is needed to fast track investigation and prosecution of procurement transgressions
Almost half of procurement irregularities arose from an intention to abuse the system, Willie Mathebula, acting chief procurement officer for the Treasury, has told the Zondo commission.
Almost half of procurement irregularities arose from an intention to abuse the system, Willie Mathebula, acting chief procurement officer for the National Treasury, has told the Zondo commission.
Mathebula was the first witness at the state capture commission of inquiry in Johannesburg on Tuesday.
His testimony was largely technical in nature and meant to assist the commission with understanding SA’s procurement legislation.
Mathebula described the government’s procurement process and the relevant legislation that governs it.
The commission is looking into malfeasance in which high-profile politicians including former president Jacob Zuma, have been directly or indirectly implicated, according to a report by former public protector Thuli Madonsela.
The commission, chaired by deputy chief justice Raymond Zondo, sat for its second day on Tuesday, with proceedings being adjourned until Friday, when former deputy finance minister Mcebisi Jonas will testify. Jonas said in March 2016 that Ajay Gupta had offered him a ministerial job.
The controversial Gupta family has been linked to allegations of state capture.
Leah Gcabashe, who led Mathebula’s testimony, asked him what led to the procurement irregularities.
“There are a number of reasons,” Mathebula said. “Some of the reasons could be intentional abuse of the system, but some of the reasons could be the interpretation of the application of the rules of the game based on capacity … If you look at what has been happening in the past years I’m sure one could ascribe at least more than 50% of these infractions to intentions to abuse the system,” he said.
Anybody could work in procurement, even if they did not have professional experience in the area, he said.
The problems in terms of procurement irregularities were located in a combination of factors, but “the bigger element was the human element in the process”, Mathebula said.
Regulations are in place and are augmented from time to time, but “humans must also choose to make sure there is compliance in the process”.
Investigations and prosecutorial processes are well known, but those processes “at times take long in the current justice system”.
“Perhaps we need to look at whether we should not reclassify procurement transgressions differently so that they get fast tracked, or even consider a special tribunal specifically to deal with these cases. Otherwise if you don’t do so, then the rot continues in the system,” Mathebula said.
Gcabashe asked Mathebula if there is a monitoring process to ensure that the R800bn in procurement spend annually is achieving its intended objectives, to which he said it is a “difficult question”.
The whole process talks to the management of the budget after it is tabled by the finance minister, and the Treasury is tasked with the responsibility to ensure that government departments and public entities spend that money correctly, he said.
“But of course there is a challenge because we can’t claim that all this money goes to where it is directed to, hence the problem that we are facing in the country,” Mathebula said.
Zondo asked if there was a study done to find out where things go wrong in procurement, to which Mathebula said they will look at it. The commission indicated that it might not be his last appearance before it and that his expertise might be used at a later stage.