Sol Plaatje must turn streetlights on for festive season
Democratic Alliance press statement by
Andrew Louw MPL
DA Northern Cape Provincial Leader
DA wants Public Protector to investigate inflated costs for construction supplies
2 June 2016
Release: immediate
The DA will write to the Office of the Public Protector to launch an investigation into inflated building-related costs being charged by suppliers, who are taking advantage of the Northern Cape Department of Roads and Public Work’s preferential procurement policies for personal gain.
This comes after the DA received information pertaining to an instance whereby a supplier, who paid R42 650 for 500 bags of cement in De Aar, charged the department R87 000 for the same 500 bags of cement. This is R44 350 more than what the cement was actually worth.
Clearly this is a rip off.
Given the current state of the South African economy and the financial strain on all departments, government simply cannot afford to throw money around in such an irresponsible way. Value for money should always be at the forefront of any purchase, especially purchases by the Department of Roads and Public Works, for which procurement accounts for the greater part of the budget of R1,473 billion.
Preferential procurement policies that benefit small and medium sized locally based businesses who want to do business with the state, should not be abused by officials and or private individuals, who use them as a guise under which to both win and manipulate contracts for personal gain. They should also not encourage the establishment of “middle-man” companies that ultimately do nothing other than add extra players, and in turn extra costs, to the procurement process, at the expense of the taxpayer.
The DA will request the Office of the Public Protector to investigate the overblown costs of cement. The DA will also request that the Office of the Public Protector looks into the circumstances under which the supplier was awarded the contract by the department. The said company markets itself as a “Events and Commodities Supply company that offers a one stop shop for any event and provides a workable solution for the supply of commodities”.
It is important that procurement procedures occur in an accountable, transparent and well-managed way. Corruption in public procurement takes away benefits meant for citizens. People responsible for the undue inflation of prices should therefore be held accountable and criminal prosecution must be pursued against individuals, contractors and any public works found guilty of such corruption.
Media Enquiries:
Andrew Louw
DA Northern Cape Provincial Leader
082 383 6914
Shelley De Witt
Researcher
082 847 1387
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