Public procurement system needs attention - Public Protector Advocate Thuli Madonsela
Problems associated with government's procurement of goods and services was an area that required a lot of attention, Public Protector Adv. Thuli Madonsela told a seminar on public procurement law this week.
Addressing the seminar organised by law firm Adams & Adams, the Public Protector said this observation was informed by the lessons learned from several investigations conducted by her office.
She cited several investigation reports, including Against the Rules, which dealt with the South African Police Service office accommodation lease; On the Point of Tenders, which dealt with the awarding of tenders for the construction of roads in Limpopo; It Can't Be Right, which dealt with procurement irregularities at Midvaal Municipality; and Yes, We Made Mistakes, which dealt with a communications tender in the Western Cape.
Among the problems plauging the public procurement system were unnecessary tenders, over billing, false-billing, poor demand management, scope creep and escalating cost, the Public Protector told the seminar, which brought together lawyers from both public and private sectors.
"We have also seen violations of the procurement framework, including failure to constitute Bid Adjudication Committees or having such committees infiltrated by people with certain intentions," she said.
The Public Protector said her office's role in this area was to provide administrative scrutiny on state actions, with a view to curbing excesses in the exercise of state power by identifying and correcting human failings and consequences thereof. In rectifying the problems, state actors that were found to have been involved in the administrative value chain were identified and efforts were made to claw back the money.
The Public Protector explained that, in investigating such matters, the legal authority her office relied upon primarily included Section 217 of the Constitution, which lays the foundation for a fair, cost effective and transparent system.
Her office further relied on the Public Finance Management Act, the Preferential Public Procurement Framework Act, treasury regulations, internal policies and enabling instruments such as Cabinet memoranda.
In investigating, her office looked at whether there was a discrepancy between what the law says and what was done. "We look at whether you had the authority to do what you did and where the authority came from," the Public Protector explained.
She noted that crucial policy changes have since been effected following some of these investigations. These included a treasury regulation that the National Treasury would supervise all tenders above R10 million and that government departments would not sign-off on the contracts on their own.
In addition, changes were being made on the Executive Members' Ethics Act, including on the sanctions for violations. Changes were also being made on the Ministerial Handbook to clarify benefits.
For more information:
Oupa Segalwe, Acting Spokesperson: Public Protector South Africa
Cell: 072 264 3273
Tel: 012 366 7035
E-mail: oupas@pprotect.org
