Mpumalanga government demonstrates apparent misconception of legal prescripts for tenders

2021-02-18
Die Redaksie

In the FF Plus's view, it is clear that the Mpumalanga provincial government does not understand the legal prescripts for the allocation of tenders or that it simply ignores them in order to accomplish its so-called transformation of suppliers.

During a meeting of the provincial Legislature's Economic Transformation Cluster Committee, the FF Plus pointed out to ANC members that Section 217 of the Constitution stipulates that when an organ of state contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective.

The party also added that although the Preferential Procurement Policy Framework Act does make provision for the allocation of tenders based on skin colour, it may not be exploited for cadre enrichment.

According to a report issued by the Auditor-General (AG) in November 2020, the provincial government makes use of two different markets when creating exclusivity for businesses that want to put in tenders with government.

Apparently, the province uses a market equation created by provincial officials and not market principles based on supply and demand.

The FF Plus formally objected to the custom of allocating tenders, exceeding market-related prices, to businesses and individuals that are often incompetent and possibly corrupt.

As an example, the FF Plus used the security companies that were hired by the province to safeguard government assets that earn far more than the companies that tendered at market-related tariffs.

One of these security companies makes an estimated profit of R5 million per month due to an inflated tender.

The FF Plus demands that the provincial government must open its tender process to all businesses so that they can put in tenders at market-related prices and then the lowest, acceptable offer must be approved and the tender allocated accordingly.


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