Premier of KwaZulu-Natal Throws The Book At Tender Fraudsters.

KwaZulu-Natal Premier Dr Zweli Mkhize speaking on 29 May 2012, after delivering his R600-million budget vote in the provincial legislature in Pietermaritzburg, identified some of the measures taken to eradicate tender fraud and manipulation of procurement policies during the period from April 2011 to March 2012.

Working with the National Prosecuting Authority (NPA), the South African Police Service (SAPS), and the provincial arm of the Special Investigating Unit (SIU), the provincial government managed to open 594 dockets during this period against employees who allegedly embezzled R 104.6 -million by fraudulently issuing tenders and the manipulation of supply chain management policies.

The Premier indicated 529 people were convicted for embezzling R28.7 -million, with only 2 out of 594 resulting in acquittals. A sum of R727 836 has been recovered to date. Critics may claim the recovery rate is less than 8% but it should be noted that 5 cases had been referred to the Assets Forfeiture Unit (AFU) and 192 cases referred for disciplinary hearing. Mkhize said there was widespread corruption around some government contracts, with tenders allocated to undeserving entrepreneurs who advanced cash instead of quality to win projects.

All contracts should pass the scrupulous test of value for money, through a fair and transparent competitive process. Criminality in the award of tenders must land those involved in prison," he said. The Premier indicated some of those arrested included government officials and business people for defrauding supply-chain management issues and procuring services for government contracts worth billions of rand.

"As stated on numerous occasions, there is widespread corruption associated with the supply-chain and procurement, fraudulent issuing of tenders and contracts to unskilled and undeserving entrepreneurs who advance cash, not proof of quality and capacity to perform, as the basis of successful award of contracts"

"Fraud and corruption have a potential to cause such a massive drain of resources that it poses a risk service delivery and cause our democracy to flounder"

“Fighting corruption needs both the impeccable integrity of those in whose hands the authority and resources of the state are entrusted by the public, as well as the culture of collective accountability, transparency and honour from those who control the levers of the state machinery", he added.

The Premier described fraud and corruption as a "cancer" which if not arrested, had the potential to irreparably harm the international standing of South Africa and its reputation among its citizens, making people lose faith in the future of the country, contracts at all times must pass the scrupulous test of value for money through a fair and transparent competitive process.

The Premier should be applauded for the measures implemented to date to eradicate tender fraud and manipulation of supply-chain management policies by corrupt officials and tenderpreneurs.

Pieter Rautenbach