Unqualified audit despite ‘closed’ tenders

2011-11-19 18:18

The Mpumalanga Department of Human Settlements received an unqualified audit opinion from ­auditor-general (AG) Terence Nombembe despite violating supply chain management policies in the awarding of housing contracts worth R331.2?million.

The tenders were awarded without being advertised to allow for competitive bidding. Nombembe’s officials in Mpumalanga picked up the matter in a final management report.

The AG found that the department had flouted sections of the Constitution of South Africa, the Public Finance Management Act and a Treasury practice note which stipulated that tenders above R500?000 should be advertised in the government bulletin or media.

The AG said: “This practice (of closed bidding) discourages fairness and is not equitable. It does not give everyone an equal chance of being selected from the database and gives the project manager unfettered powers to select favourite service providers.”

After this report, departmental head David Dube met with AG officials. The meeting directed that Dube and the AG’s Sibongile Lubambo find “common ground” on the closed bidding policy.

“In a meeting, Lubambo indicated that she did not have a problem with the policy and advised that the department should interact with the provincial treasury. If treasury had no problem, the AG’s office wouldn’t have one because (it) ­audits matters in line with the instructions, regulations and policies of treasury,” Dube wrote.

Dube claimed that he had sent the policy to treasury, which did not “indicate anything contrary to the policy.” However, former Mpumalanga treasury head Mandla Mazibuko told the department in writing that any project more that R500?000 must be open to competitive bidding.

Jonas Letshela, provincial treasury spokesperson, agreed with Mazibuko this week: “We did advise human settlements on this matter, which is that projects above R500?000 should go out to open bidding process.”

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.