Bidders are advised to remove government employees from their businesses

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With the overwhelming evidence contained in the Zondo Commission’s Report on manipulation of the public sector procurement system, the government has over the last while started to investigate those employees, who are also involved in businesses, tendering for state contracts.

State employees are now required to submit financial disclosure forms on an annual basis to allow the Department of Public Service and Administration, to verify, whether they are also not owners or shareholders of businesses, submitting tenders to the government.

In reply to a question in Parliament, Public Service and Administration Minister Ayanda Dlodlo, confirmed that; “On a monthly basis, the Department of Public Service and Administration (DPSA) receives data from the National Treasury covering all new registrations on the Central Supplier Database (CSD) for that month.”

According to the Minister, If it’s found that a state employee is listed on the CSD, her department will inform the relevant organ of state, to take the necessary disciplinary steps against the employee and to report back to the DPSA on the outcome of the process.

In her reply, Dlodlo reported that “In January 2017, the DPSA adopted a Directive on Conducting Business with an organ of State to guide departments with the implementation of Regulation 13(c) of the Public Service Regulations, 2016, which prohibits employees from conducting business with the State.”

Also, “In 2016, the Public Administration Management Act (PAMA) was accented to, which provided for the criminalisation of employees conducting business with the State.”

“To further address the issue of Public Service employees conducting business with the State, the DPSA, South African Police Service and National Prosecuting Authority formed a Task Team that meets regularly to update one another on progress regarding ongoing investigations and to unblock challenges.”

Dlodlo said, “The DPSA also amended the Application for Employment form (Z83) to make it compulsory for prospective employees to disclose if they are conducting business with the State. The use of the amended Z83 form is compulsory from January 2021, and misrepresentation is considered misconduct that may result in the termination of an employee’s service.”

According to Gerrit Davids, Lead Advisor at TaranisCo Advisory, tendering agency, “It is imperative for those businesses tendering for government contracts, to remove any shareholders or co-owners, who are also directly employed by the state or who act as advisors, to be removed from the register at the CIPC as well as the CSD.”

Davids says, “A failure to do so, could lead to the owners being criminally charged and their businesses, potentially being blacklisted, from doing business with the state, for up to 10 years”

Contact: Gerrit Davids. Lead Advisor | TaranisCo Advisory CC  Mobile. +27 (0) 82 496 1657 E-mail: or kindly visit our website: for more details.


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