Treasury have has made some baffling revelations on how the Social Development Minister Bathabile Dlamini, allowed irregular tenders.
The Minister approved contracts for the controversial work streams that were deemed irregular by the Treasury.
According to a letter from the Treasury sent to South African Social Security Agency (Sassa) CE Thokozani Magwaza, the deviation from normal procurement processes requested by Sassa was not approved. The workstreams operated parallel to Sassa’s standard functions and appeared to usurp the agency’s roles and responsibilities.
“Sassa did not report the deviation within [the] prescribed 10 days or request prior approval from [the Treasury]” as required, the Treasury’s chief director of supply chain management, governance, monitoring and compliance, Solly Tshitangano, wrote. Due to non-compliance “all contracts concluded should be regarded as irregular”, he said.
A Treasury assessment of all documents about the appointment of the workstreams revealed noncompliance.
There was no evidence that terms-of-reference bid specification was considered by the bid specification committee and approved by the delegated authority.
There was also no evidence the initial process to appoint workstream leaders was considered by the bid evaluation committee before it was referred to the adjudication committee. He said the bid adjudication committee gave no valid reasons for recommending the deviation at a meeting on September 10 2015.
According to the Treasury’s letter, the workstream leaders were given 23 days to respond to a request for proposal, which “indicated that Sassa had enough time to invite competitive bids”.
“There is no evidence that procurement was urgent because proposals were received on October 30 2015 and considered by the bid adjudication committee on April 5 2016,” Tshitangano said.
“Contracts were finalised in June 2016, which is almost 12 months from the initiation of the deviation process, defeating the reason for not inviting competitive bids.”