National Treasury reviewing all contracts above R10 million across government

National Treasury has noted with concern recent reports from the Sunday Times suggesting that Eskom is being targeted for investigation. The report was malicious and mischievous, based on unnamed and faceless sources purporting to be close to the National Treasury.

It is a fact that since June 2015, the Office of the Chief Procurement Officer has been reviewing contracts above R10 million across government in its quest to ensure value for money and reduce wastage and irregularities in procurement.

The primary focus of this review is on all State-Owned Companies (SOCs) i.e. Schedule 2 entities such as PRASA, Eskom, Transnet, SABC and South African Airways. The coal contracts of Eskom happen to fall within the category of contracts that are above R10 million. Eskom has been cooperating with the review. SOCs form the backbone of the economy and their performance, efficiency and financial health is therefore paramount to achieving the country’s economic objectives.

Statement issued by National Treasury, 24 February 2016