Potential R6 billion in Gauteng contracts non-compliant

Mike Moriarty MPL

Spokesperson on Finance

Almost 25% of provincial government department contracts above R100 000 were non-compliant in the 2012/13 financial year. This figure was 11.5% for municipal contracts across the province for the same period.

The implication of this is alarming. I will accordingly ask Gauteng Finance MEC Mandla Nkomfe to urgently investigate this matter. I will also ask for an assessment of the impact of this non-compliance.

According to the MEC’s written reply to my question the department checked 613 contracts across provincial government departments and 400 contracts across municipalities for compliance. A copy of the reply is available here.

The potential risk to the Gauteng public purse is enormous. The province spends R5 billion on capital projects and R20 billion on goods and services. These amounts will almost all be covered in one or other contract with some or the other supplier.

Therefore if 24.31% of contracts are non-compliant the amount involved could be as much as R6 billion. This suggests that the provincial government has allowed a situation where hundreds of millions of rands may be lost through corruption or fruitless or wasteful expenditure.

The DA is greatly concerned. We will pursue this matter and leave no stone unturned in searching for answers and stopping a probable massive sinkhole of public money.

A DA-led Gauteng Provincial Government will ensure proper controls and punishment for officials who waste or steal public money. More money would be spent on proper services and infrastructure leading to better services and more jobs.