{"id":9227,"date":"2013-08-16T07:26:30","date_gmt":"2013-08-16T07:26:30","guid":{"rendered":"http:\/\/praag.org\/?p=9227"},"modified":"2013-08-16T07:26:30","modified_gmt":"2013-08-16T07:26:30","slug":"ag-almost-a-billion-awarded-in-nepotist-contracts","status":"publish","type":"post","link":"https:\/\/praag.org\/?p=9227","title":{"rendered":"AG: Almost a billion awarded in nepotist contracts"},"content":{"rendered":"

\"agsa\"<\/a>Almost a billion, or R885-million. That\u2019s how much municipalities paid to companies owned by government employees, councillors and their close family members in the 2011\/12 financial year.<\/p>\n

The vast majority of the contracts \u2013 R793,4-million worth – went to companies directly under the control of government employees and councillors, some of whom work within the municipality where the contracts originate.\u00a0Others work in other government departments.<\/p>\n

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Awards made to officials of other organs of state, who made false declarations on their tender documents, were difficult to detect due to a lack of adequate systems to identify instances of false declarations<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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The payments are in violation of government supply chain management regulation 44, the Auditor General has said in his detailed provincial reports on spending in municipalities. These contracts form a large part of the R9,27 billion in irregular expenditure in municipalities.<\/p>\n

With R464,4-million in contracts for government staff, Limpopo tops the list of offenders. The province has been plagued by allegations of corruption and maladministration, and earlier this year Premier Cassel Mathale resigned.<\/p>\n

\u201cA total of 20 (69%) auditees made awards to the value of R464, 64 million to suppliers in which officials, councillors and officials of other state institutions had an interest. This represents a significant increase from the R1, 2 million identified in the previous year,\u201d the AG\u2019s report on Limpopo said.<\/p>\n

\u201cWhere interest was identified, the suppliers did not declare the interest in 41% of the instances and the employee did not declare in 23% of the instances,\u201d the Limpopo report reads.<\/p>\n

In Gauteng, R280-million was paid to companies owned by government staff and councillors. \u201cThe majority of these contracts were awarded by the Tshwane municipality \u2013 with 281 contracts going to staff and councillors in the employ of the municipality. Another 2074 contracts went to the companies owned by government employees in other institutions.\u00a0\u201cThis was a significant increase from R89,4-million in the prior year,\u201d the AG says in the report.\u00a0The AG also noted that the tripling of contracts awarded to municipal staff \u201cindicates that auditees did not make progress in the screening of tenders to employees and councillors\u201d.<\/p>\n

\u201cThe City of Tshwane ran computer-assisted audit techniques to detect and prevent awards to employees, close family members of employees and councillors. However, awards made to officials of other organs of state, who made false declarations on their tender documents, were difficult to detect due to a lack of adequate systems to identify instances of false declarations,\u201d the report said. – eNCA<\/p>\n","protected":false},"excerpt":{"rendered":"

Almost a billion, or R885-million. That\u2019s how much municipalities paid to companies owned by government employees, councillors and their close family members in the 2011\/12 financial year. The vast majority of the contracts \u2013 R793,4-million worth – went to companies directly under the control of government employees and councillors, some of whom work within the … Continue reading “AG: Almost a billion awarded in nepotist contracts”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":9230,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4],"tags":[3910,5194,5197,5195,5196],"class_list":["post-9227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-south-africa","tag-auditor-general","tag-false-declarations","tag-nepotism","tag-tender-documents","tag-tshwane-municipality"],"cc_featured_image_caption":{"caption_text":false,"source_text":false,"source_url":false},"jetpack_featured_media_url":"https:\/\/praag.org\/wp-content\/uploads\/2013\/08\/agsa.jpg","_links":{"self":[{"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts\/9227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9227"}],"version-history":[{"count":1,"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts\/9227\/revisions"}],"predecessor-version":[{"id":9232,"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/posts\/9227\/revisions\/9232"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=\/wp\/v2\/media\/9230"}],"wp:attachment":[{"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/praag.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}