Minister Of Finance Promises Tough Measures On Tender Corruption

 Speaking during his medium-term budget policy statement in Parliament last week, Finance Minister, Pravin Gordhan, said that nearly R25billion in procurement and tender fraud was being probed.

"We will ensure tax funds and government monies are spent wisely and managed with integrity. We owe this to our honest citizens and responsible taxpayers" he said. He also announced a number of changes in the system for contracts awarded by the state and other levels of government for goods and services.

A number of measures were announced by which government intends clamping down on corrupt contractors and public officials responsible for crooked deals on which taxpayers funds were squandered.

The measures include making tender and procurement processes more transparent and of applying penalties of up to double the value of a contract for those who secure business fraudulently. It is also intended to increase the monitoring capacity of government aimed at early detection of fraud.

Tax compliance measures would be strengthened, and withholding of tax on payment to crooked contractors would be considered. State departments and other levels of government would be required to provide the Treasury with details of their tender practices and there was a possibility that the Canadian model would be followed whereby the details of all the bids received were published, along with the reasons for the contract being awarded to the successful tenderer.
 
Measures aimed at eliminating long suspensions and paying full salaries and other employment benefits to corrupt public officials who breach procurement rules while investigations drag on for long periods need to introduced, added Deputy Finance Minister Nhlanhla Nene, after the medium- budget policy statement was delivered.

While these laudable announcements are generally welcomed, the sceptics will reason that it will remain a nothing more than a wish list unless the political will is there to vigorously eliminate fraud and corruption in all sectors.

Pieter Rautenbach