South Africa: Treasury's Procurement Monster Risks Feeding the Abuse It Seeks to Stop

The new Public Procurement Act and its draft regulations are costly, unwieldy and unworkable. That's not just our view: it's the view of civil servants trying in good faith to navigate a broken system and grapple with its impractical and incomprehensible replacement.

AmaBhungane recently reported that Eskom awarded three diesel-supply contracts, each worth roughly R4-billion, to:

  • A group that is under investigation for allegedly bribing Transnet officials.
  • An obscure company that also received a large water tanker contract from Johannesburg Water.
  • A company led by a 24-year-old psychology graduate and online wig seller.

Eskom is investigating the "possible irregularities" in that and other diesel fuel and storage contracts. But, as with many of the irregular tenders we investigate, this may be too little too late.

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Another of our recent investigations detailed how, despite the high court declaring a Johannesburg Water tender process irregular, the contract remains in place during the appeal process and the contractors are likely to receive full fees under the contract.

As our investigations so often demonstrate, corruption and mismanagement crop up at all stages of the tender process - when the tender is conceived and the specifications are designed; when the bids are evaluated and adjudicated and a winning bidder chosen; when successful bidders are allowed to deviate from the terms of their contract; and when managers and external authorities fail to hold those responsible for irregular awards accountable.

It is clear to us that SA's public procurement...

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