SA government's double standards in pricing exposed
It was agreed right at the beginning of the lockdown that no company should unreasonably profit from the horrific pandemic this country is enduring. With the full backing of parliament and government the Competition Commission has fined big companies like Dischem and Matus millions of rands for inflating prices of personal protective equipment (PPE), sanitisers and other essential equipment. The government is quite correct: There is something particularly repugnant in anyone profiteering off the back of a pandemic.
But, as usual, the government’s double standard has been repeatedly exposed. Municipalities, as well as provincial and national government departments, have had a field day using this terrible disaster to bypass regulations and dish out shady tenders to dubious businesses charging exorbitant prices. National treasury set fixed amounts for the purchase of PPE and other essentials related to the pandemic. They have been totally ignored.
As each new horror is unveiled by the media, politicians proclaim their shock and another investigation is launched. The official opposition lays criminal charges. This is followed by that dead inertia which is killing our democracy as surely as this virus is killing our more vulnerable citizens. We live in a political universe where there are zero consequences for immoral, unethical and criminal behaviour.
Just one example in the Eastern Cape has had terrible consequences. The provincial education department reportedly spent five times more than retail prices for bulk sanitiser and other PPE. In early July, education MEC Fundile Gade, with the backing of the ANC, said there was nothing wrong with the deal. Fast forward two weeks and we find out that the sanitiser for which the taxpayer was forced to pay an exorbitant price had far less alcohol content than required by law. The cost of this substandard product goes beyond money. It may well still be paid in lives. Over 200 pupils and staff at just one of the schools subjected to the substandard sanitiser have now tested positive for the coronavirus. There have been numerous other reports of similar inflating of prices way beyond what would be acceptable in a competitive bidding process.
So does the Competition Commission’s mandate extend to these government contracts? Will these profiteers be fined like the big companies who ripped off their customers and clients?
The very basis of regulations governing the purchase of public goods and services is to ensure the government gets the best bang for the taxpayers’ money. This is not happening and someone other than the citizenry should pay the price. One thing our readers can be sure of: this publication will continue to peel back the layers and expose those who continue to take part in this unconscionable exploitation.
As each new horror is unveiled by the media, politicians proclaim their shock and another investigation is launched