COSATU Gauteng Press statement on the outcome of investigations by the Department of Roads and Transport
The Congress of South African Trade Unions in Gauteng congratulates the Auditor General for his report on 14 June 2011 on allegations of irregular expenditure and flaws in the awarding of tenders totalling over R1 billion by the Gauteng Department of Roads and Transport.
While COSATU is shocked at his findings, it is very encouraging to see such a determined and vigorous attempt to uncover the abuse of tender procedures and also the prompt response of Transport MEC Ismail Vadi, who has immediately taken action to rectify the problem.
The tenders in question relate to the following projects in the Province:
- Provision of security to departmental buildings (R49 million);
- Intelligent number plate project (R1.3 million);
- Establishment of new Driver-Learner Testing Stations (DLTCs) and a turn-around strategy for DLTCs (R35 million);
- Installation of a Biometric Verification System (R4 million);
- Construction and renovation at Derek Masoek Centre (R20 million); and
- The construction of roads (R900 million over 3 years)
The AG exposed "a systematic weakness in the department's supply chain management process and poor quality of reporting". He found that the process followed when awarding the contracts was flawed and he suggested, diplomatically, that "actions by some officials may have amounted of a conflict of interest".
Bidders were not sufficiently rated and no evaluation of different bidders took place, which led to incorrect ranking and higher value contracts. "As a result of the process having been flawed," says Comrade Vadi, "the five successful bidders for the security tender were awarded contracts while they should have been disqualified at the preliminary evaluation stage" and therefore "these bidders received contracts which they were not entitled to".