Dept to blacklist dishonest firms

2013-10-30 00:00

COMPANIES that conduct business with the KwaZulu-Natal Economic Development and Tourism Department and falsify their declaration of interests are in for a rude awakening.

This comes after head of department Desmond Golding yesterday threatened to blacklist such companies when they bid for tenders.

“We are finding situations where the supplier would provide us with information that is incorrect. The bulk of time we pick it up or at times the Auditor-General (A-G) makes the finding.

“Now any company that [is found to] have falsified their declaration of interests would be blacklisted in terms of the Public Finance Management Act.

“They would not be allowed to do business with the department or any other government department,” Golding said.

He said his department would ensure that there was no work that was done and paid for without approval.

Golding made the statement at a meeting of the standing committee on public accounts (Scopa) when his department accounted for its finances for 2012/13.

The department obtained unqualified audit opinion with matters of emphasis.

The A-G found that the department incurred R20,8 million in irregular expenditure.

It also found that the contracts and quotation were awarded to bidders that did not submit a declaration on whether they were employed by the state or connected to civil servants.

The A-G also found that sufficient appropriate evidence could not be obtained that contracts and quotations were awarded to suppliers whose tax matters have been declared by the SA Revenue Services to be in order.

Golding said his department would ensure there was compliance with relevant regulations on tender issues.

He said no tender would be awarded without a tax certificate and that late or non-submission of declaration of interests would not be tolerated.

“The chief finance officer has been given the responsibility [of ensuring] that proper oversight is done in this regard.”

Golding confirmed that his department would ensure that it paid suppliers within the required minimum of 30 days after invoices were submitted.

He was confident that his department would achieve a clean audit report.

“There is an improvement in that regard, but work is not done until it is done completely,” he said.

Addressing the committee earlier, MEC Mike Mabuyakhulu said his department was inspired by the audit outcome for 2012/13.

“We have all made a commitment to move towards a clean audit. We still believe that there are areas for improvement, but those areas are possible for us to achieve better results with the focused approach we are adopting,” he said.


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