Gauteng Education procures over R1 billion in services without “open tender” system  

20 October 2016

The Gauteng Education Department was found by the Auditor-General (A-G) to have procured goods and services with a transaction value above R500 000 without obtaining price quotations as required by Treasury Regulation 16A6.1.

This information emanates from the department’s 2015/16 Annual Report. 

According to a response by the Gauteng Education MEC, Panyaza Lesufi, to a DA question on the matter, the MEC indicated that a number of tenders were not run through the “open tender” system. 

Contracts awarded over half a million rand in the 2014/15 and 2015/16 financial years amounted to over R1.1 billion of which 8 contracts were not procured in accordance with Treasury Regulations. 

The cumulative value for the contracts extended and not put out for open tender are unknown. 

Despite providing reasons for not openly tendering these contracts, the department suffers from the same problem year-on-year. 

Premier David Makhura made claims at the Open Tender conference that the Gauteng Provincial Government has opened tenders for all contracts. 

The DA will submit further questions to the MEC to ascertain the value of each of the 8 contracts awarded, which service providers have benefitted and what the MEC’s plans are to rectify the non-compliance with Treasury Regulations.

The DA will closely monitor the department’s expenditure on contracts for goods and services and ensure public funds are well spent and not pocketed by corrupt officials or bogus service providers. 

Issued by Khume Ramulifho, DA Gauteng Shadow MEC for Education, 20 October 2016