29 August 2012

South Africa: Do Away With Corrupt Tender System

press release

The Pretoria High Court has found that the R10 billion tender awarded to Cash Payment Service (CPS) by the Department of Social Development is illegal and invalid. Based on this latest in a string of evidence, it appears the tender system is irretrievably corrupt.

IFP spokesperson on Social Development, Hon. Helen Makhuba MP, asked, "How could the Department fail to do the necessary assessments of the company before awarding the tender? Is it because the company is linked to a friend of the Minister of Human Settlements, Minister Tokyo Sexwale?"

Surprisingly, the Court has ruled that CPS should continue with the tender because there might be disruptions in distributing the money to about 14.8 million people if the tender is taken from CPS.

"The IFP would have liked to see the Court order the Department of Social Development to re-open tender applications so that, while CPS continues with grant distribution to prevent disruption of grant payments, all the processes and necessary assessments can be done," said Makhuba, "After that, the tender should be taken from CPS and given to a credible company to continue grant distribution. We cannot let a company that got the tender illegally and invalidly continue with it."

Instead of being 'embarrassed' by corruption in her Department, the IFP calls on the Minister of Social Development to be more vigilant over her Department's awarding of tenders.

Beyond that, the IFP believes the entire tender system of Government needs to be reconsidered. "There is always some corruption in tender awarding," said Makhuba, "And there seems to always be a link with government officials and ANC cadres. Meanwhile, those not affiliated with the ANC have no hope of getting tenders."

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