Premier Mabuza’s office is breaking tender rules

By James Masango MPL, DA Spokesperson on the Office of the Premier:

The DA can reveal that the office of Mpumalanga Premier David Mabuza is flouting tender regulations, and breaking tender rules. This may indicate blatant corruption, which will further keep the people of Mpumalanga from service delivery desperately needed.

The tender irregularities have been laid bare in the contradiction between the report of the Accounting Office and the Auditor General in the office of the Premier’s Annual  report for the financial year 2014/15.

In the report, the Accounting Officer states that, “the invitation of competitive bids for threshold values above R 500 000 is implemented consistently and that deviations from normal procurement processes are justified and sustainable”. This directly contradicts the AG’s findings when he stated that, “Goods and services with transaction value above R500 000 were procured without inviting competitive bids as required by treasury regulation 16A6.1. The Accounting officer approved these deviations even though it was not impractical to invite competitive bids, in contravention of treasury regulation 16A6.4.”

The flouting of these tender regulations is one of the reasons why the Office of the Premier received an unqualified audit opinion with findings for the 2nd time in a row.

Further perusal of the report reveals amongst others that:

  • The OTP has accumulated irregular expenditure amounting to R92.7 million
  • The amount spent on consultants and outsourced services has drastically increased from R7.6 million in 2013/14, to R28.4 million in the 2014/15 financial year
  • Accruals amount to R7.6 million. This is for goods and services procured and not paid within the stipulated 30 day period
  • Claims against the department amount to R17.9 million.

‘uNduna nkulu’ is not leading by example, and is instead ensuring that those who are politically connected are receiving lucrative government contracts, with kick-backs making their way to the ruling parties coffers.

Those who do receive contracts legally, are not being paid within the stipulated 30 day period, further compromising the survival of SMMEs in the province.

In DA governments, our service delivery records and governance outcomes show that we are committed to spending public money efficiently and effectively, and in the interest of the people.

The province needs Premier Mabuza to make a speedy return, so as to account fully for the matters raised above and give further clarity on why his office only achieved 82% of its targets, yet spent 97.6% of its R216.8 million budget.