Database Of Restricted Suppliers In The Public Sector

Chapters 2 and 3 of the Prevention and Combating of Corrupt Activities Act of 2004, contains the enabling measures for dealing with offences in respect of corrupt activities, relating to specific offences and in particular with the establishment of a Register and the appointment of a Registrar to record such offences subject to the control and directions of the National Treasury. This is the so-called "name and shame" register which can only be activated by a Court of Law in accordance with section 29 of the Act.

A previous article, “Tough Measures Implemented to Root out Irregularities in Public Sector Procurement” dealt with the recent publication of the first Database of Restricted Suppliers on the website of the National Treasury.
It is important to note that the Database contains a disclaimer to the effect that it is kept by the National Treasury in terms of Regulation 16A 9.1 (c) and the information therein is published on the strength of information supplied by the relevant government departments or public institutions.

The National Treasury accordingly does not accept any liability arising from the veracity or accuracy of the information set out in the Database of Restricted Suppliers. National Treasury Practice Note No SCM at paragraph 2.5 provides that: A contractor or any other person restricted by an Accounting Officer/Authority has a right to contest the restriction in a Court of Law and the Accounting Officer/Authority who imposed the restriction will be responsible and accountable for the Court Proceedings".

As fresh information comes to hand, it appears that although the Register and Database are co-ordinated by the National Treasury, there may be separate processes involved. One hundred and nineteen suppliers were restricted on the Database of which some forty-eight were cited by the Limpopo Department of Local Government & Housing mainly for poor or non-performance.

Eleven cases of public officials not having the necessary permission to provide services were recorded on the Database which implies that it may be in order for public officials to provide services, outside their regular employment, to government departments or public institutions. Many of the citings concern fronting, misrepresentation of information, prejudice or potential, unlawfulness and intention and at least one instance of a supplier paying bribes. The latter concerns Quantum Leap Investment 24 (Pty) Ltd t/a Teddy`s Construction cited by the KwaZulu-Natal Department of Public Works.

This was probably the supplier referred to by MEC for Public Works and Housing, Maggie Govender when she addressed a meeting of Emerging Contractors on 1 June in Durban. Phoenix based Niranda Boodoo, 25, is listed as the only Director of Quantum Leap Investments 24 t/a Teddy`s Construction and has to account for allegations that her enterprise paid bribes to secure infrastructure contracts with the Department of Public Works.

Her father has indicated that the ruling will be challenged in the High Court but was unable to indicate the name of the legal team that would initiate this. He was particularly aggrieved that it was only companies like those of Shauwn Mapisane and Quantum Leap Investments 24 (Pty) Ltd that were being victimised by the authorities while "fly-by-night groups were left to do their own thing". He stressed the bribery was only alleged, unfounded and still under investigation.
Boodoo said that the company had lent an official R1 000 and that there was a written loan agreement. "The R1 000 was a loan and not a bribe", he said.
Readers should accordingly be cautioned to deal with circumspection to lend money to public officials when approached to do so.

CLICK HERE to access the national treasury database of restricted suppliers.

Pieter Rautenbach