Gordhan sets out new laws
THE National Treasury has published its first tender blacklist naming companies and individuals who will no longer be eligible for government business because of poor performance, maladministration and fronting.
"We need to ensure that our supply chain processes are as watertight and secure as they can be," Finance Minister Pravin Gordhan told Parliament's finance committee.
He also announced stringent new regulations designed to crack down on tender fraud and overpricing.
Gordhan said the Treasury would monitor all tenders priced above R500,000 at all levels of government, including municipalities.
The regulations released yesterday by accountant general Freeman Nomvalo require the Treasury to list on its website the names of all companies that bid for a tender as well as details, including the price, of the winning bid.
Gordhan said bid documents would have to include the names of all directors and senior officials of a company so that authorities can check them against the state's payroll to make sure they are not elected representatives or public servants.
Nomvalo said the listing provision would make it possible for the government to stop the now prevalent practice of bidding under different company names.
Anyone in the management or on the board of a blacklisted company would be blacklisted also when associated with another company.
Many smaller government contracts currently go to so-called shelf companies which are bought from agents for a few hundred rand and exist only for a single project.
When something goes wrong owners close or liquidate the company concerned and file their next bid under another name.
Companies on the initial list range from Ace of Hearts Trading to PDI Development Enterprises, which were blacklisted for "poor performance". PDI is an abbreviation for previously disadvantaged individual.
Other reasons for excluding businesses ranged from fronting - the practice of putting black people on the board without real influence in order to meet BEE requirements - to maladministration, bribery, non-performance and misrepresentation.
The names of individuals appear to refer to black, white and Indian businessmen.
Gordhan said the new regulations would limit the extent of variations to existing contracts.
This would block one common way of evading tender restrictions by expanding the job description once a contract has been awarded.
He said departments and local authorities would be required to give the treasury a list of the tenders it plans to issue well ahead of time to ensure efficient management of the process and to help fight overpricing.
Crackdown on tender fraud
Gordhan sets out new laws
THE National Treasury has published its first tender blacklist naming companies and individuals who will no longer be eligible for government business because of poor performance, maladministration and fronting.
"We need to ensure that our supply chain processes are as watertight and secure as they can be," Finance Minister Pravin Gordhan told Parliament's finance committee.
He also announced stringent new regulations designed to crack down on tender fraud and overpricing.
Gordhan said the Treasury would monitor all tenders priced above R500,000 at all levels of government, including municipalities.
The regulations released yesterday by accountant general Freeman Nomvalo require the Treasury to list on its website the names of all companies that bid for a tender as well as details, including the price, of the winning bid.
Gordhan said bid documents would have to include the names of all directors and senior officials of a company so that authorities can check them against the state's payroll to make sure they are not elected representatives or public servants.
Nomvalo said the listing provision would make it possible for the government to stop the now prevalent practice of bidding under different company names.
Anyone in the management or on the board of a blacklisted company would be blacklisted also when associated with another company.
Many smaller government contracts currently go to so-called shelf companies which are bought from agents for a few hundred rand and exist only for a single project.
When something goes wrong owners close or liquidate the company concerned and file their next bid under another name.
Companies on the initial list range from Ace of Hearts Trading to PDI Development Enterprises, which were blacklisted for "poor performance". PDI is an abbreviation for previously disadvantaged individual.
Other reasons for excluding businesses ranged from fronting - the practice of putting black people on the board without real influence in order to meet BEE requirements - to maladministration, bribery, non-performance and misrepresentation.
The names of individuals appear to refer to black, white and Indian businessmen.
Gordhan said the new regulations would limit the extent of variations to existing contracts.
This would block one common way of evading tender restrictions by expanding the job description once a contract has been awarded.
He said departments and local authorities would be required to give the treasury a list of the tenders it plans to issue well ahead of time to ensure efficient management of the process and to help fight overpricing.
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