DA PROPOSES TRANSPARENCY IN GAUTENG TENDER PROCEDURES

Mr Mike Moriarty, DA Gauteng Finance Spokesperson, will be proposing to the Gauteng Finance Committee more transparency in procedures for awarding contracts under R500 000, where currently there is much opportunity for abuse.

"If a tender is for work of less than R500 000 then it is possible for staff to get away with corruption. For such contracts the government does not have to go out to public tender. Instead, an official simply looks for names of companies that supply the goods and then get 3 quotations. But for tenders above R500 000 there is an open process" said Moriarty.

He also said, "It is too easy for an official to get two quotes from suppliers and then take these to get a third quote from a friend or relative who has the chance to see the other two prices and then slip in a lower quote. In addition, a R2 million contract can easily be unbundled into 4 parts and each of these subjected to the closed 3-quote process. The tender process for the Gauteng Provincial Government therefore needs to be reviewed. As things stand, more openness is needed and more opportunities must be provided for small emerging businesses."

"Currently, who is to say that the process of awarding a contract of less than R500 000 is being done with integrity? Certainly the process is beyond public oversight and there is scope for dishonesty and self-enrichment. I have therefore called upon the MEC for Finance in Gauteng to review the provincial government's tender procedures. It is possible to bind the officials in such a way that the call for quotations is open to the entire public and the awarding of such contracts is done in public view."

Moriarty said "I have been informed that I will now be afforded an opportunity to put forward my proposal to the Finance Committee. I welcome this opportunity and I hope that a new process will be adopted that will give greater opportunities to businesses that need a start, thus creating more jobs in Gauteng."

Statement issued by Mike Moriarty MPL, DA Gauteng finance spokesperson, September 19 2011

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