Tender abuse hard to detect

Despite its strict policies geared up to clamp down on tender corruption, the Nelson Mandela Bay Municipality has no way of knowing if an employee has a private company that is benefiting from metro tenders unless it is declared upfront.

This was revealed after the auditor-general (AG) found that tenders were awarded in the 2013-14 financial year to companies whose directors or shareholders were municipal employees and/or councillors.

The metro’s supply chain management policy prohibits the award of contracts to:

  • A person who is in the service of the state;
  • A company of which any director, manager, principal shareholder or stakeholder is a person in the service of the state; or
  • Someone who is an adviser or consultant contracted to the municipality.

A person in the service of the state refers to any government officials, councillors and members or directors of a government entity.

-Rochelle de Kock

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