Tag Archive | government malpractice

Treasury says it has plans to cut down on tender fraud

Finance Minister, Pravin Gordhan, in replying to a parliamentary written question on what government was doing about malpractice in state tenders and overpricing of goods and services supplied on government tenders, has replied that National Treasury is developing  a “national pricing system” to be adopted by departments in such instances where government is paying outside providers.

The written reply did not give any indication of the levels of government to which such new plans might apply.

Such measures, the minister replied, would improve government’s ability to monitor transactions and help detect fraud at an earlier stage. Also there were plans to introduce more transparency in the procurement process itself, including the necessity to declare and provide reasons for awarding a particular contract.

More centralised control was to be sought when high-value goods were purchased, the minister wrote, and penalties such as double the contract value were envisaged.

In a separate platform before Parliament closed, Pravin Gordhan drew the attention of parliamentarians to the fact that a higher level of integrity was also called from the private sector when dealing with state officials, in particular in the way that they tendered for government business and the prices that were charged.

He also drew attention to the fact that taxpayers themselves were getting wary of the misuse of public funds by government, pointing to the fact that the auditor general had recently summated in their published annual reports of the previous financial year that the public sector had fruitless and wasteful expenditure of R30bn.

In a separate media briefing later, minister Gordhan shared the platform with minister Collins Chabane, when the South African Auditor General  Terence Nombembe presented in annual report on government departmental audits to Parliament, which amplified on the issue of “fruitless and wasteful expenditure” by government officials and also underlined the inadequacies of municipalities throughout South Africa insofar as financial management, procurement and tendering processes were concerned.

Posted in Cabinet,Presidential, Finance, economic, Public utilities, Security,police,defence, Trade & Industry, Uncategorized0 Comments

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