BLACKLIST COMPANIES FOR R133M CONTRACTS TO STATE OFFICIALS

Fred Nel MPL

DA Gauteng Spokesperson for Local Government

According to the Auditor-General municipalities across Gauteng awarded contracts worth R133 million to companies linked to municipal and government officials. An unknown amount was also awarded to companies belonging to councillors in the province.

The MEC for Local Government and Housing Ntombi Mekgwe must institute a central provincial blacklist to prevent companies with a bad reputation from conducting any business with municipalities and government departments in the province. The proposed blacklist must also be accessible to private companies so that they too know who the culprits are.

It is deeply problematic that officials and politicians benefit from public money by improperly doing business with the state. These companies should be blacklisted to prevent any further business with municipalities and government departments. This will send a strong message that this practice will not be tolerated.

Municipalities should also recover the public money given to those companies because they contravened supply chain management rules by not declaring their interests.

Unfair supply chain management practices divert billions of Rand annually from public money. This impacts negatively on service delivery and there are usually no consequences for the politically connected if their companies do not deliver on municipal contracts.

The MEC must take harsh action as the first step in cleaning up the supply chain management processes of municipalities in Gauteng.

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