Spotlight on tender fraud

THE Public Works Department is to give its supply chain section a complete overhaul due to root out rampant corruption.

This follows startling revelations by the City Press last year that Public Works had renovated President Jacob Zuma’s Nkandla home at a cost totalling over R200-million.

“The weaknesses in government are around the tenders,” said Public Works Minister Thulas Nxesi. “Tenders relating to leases and construction.

“Supply chain processes tend to be very, very weak ,” he said.

Nxesi said the main challenge facing his department was that it was run by administrators instead of artisans and project managers.

He addressed the media during a visit to East London as part of a quarterly meeting with the provincial departments. The meeting was attended by his Deputy Minister Jeremy Cronin, six public works MECs including the Eastern Cape’s Thandiswa Marawu, and all nine director-generals.

Nxesi said the first step to deal with corrupt practices at supply chain was to initiate forensic audits of suspect projects, and try to augment the work of the Special Investigating Unit.

“But also to start building the technical capacity of the department so that we properly manage procurement (processes) and (government) projects.

“Procurement and projects are so poorly managed. And it’s not only at national. In all public works departments there are problems,” he said.

Nxesi confirmed yesterday that an internal investigation into the Nkandla project showed that even though the beefing up of security at the President’s home was approved by the security department, there is suspicion that tenders were inflated.

“The upgrade was necessary and it was approved by the security department, but there are certain prices we are not happy with. We need to investigate that,” he said.

The SIU is investigating 40 cases in total, including the Nkandla case, Nxesi revealed. These included high-profile cases of overpricing relating to leasing. Among them are:

l The renovation of ministerial houses in Cape Town and security provision estimated at R100-million,

l A R59-million contract for the renovation of Public Works head offices in Pretoria in 2009 that “sky-rocketed” to R325-million in August 2011.

“We have identified systemic weaknesses in the system. We have identified procurement irregularities and corrupt practices. We are recovering some losses which we have identified. And we are also instituting criminal and civil action where it is appropriate,” said Nxesi .

To assist the department, Finance Minister Pravin Gordhan provided R600-million this year for it to hire 200 technical experts. — zineg@dispatch.co.za

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