Government calls for stricter approach to blacklisting of tenderers

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10-12-2021
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Taranis
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Parliament heard that more than 5 000 contracts, worth almost R15 billion are being investigated, which were awarded to more than 2 600 service providers, as part of the investigation into contracts, that were awarded for personal protective equipment (PPE) and Covid-19 related services.

The Special Investigations Unit (SIU) reported that; “The investigations actually reflect that most of those irregular contracts are in the provincial state institutions, followed by national and, lastly, by local government.”

The SIU has also started a process of engaging National Treasury to present its recommendations as to which companies should be blacklisted.

Despite the fact that the Standing Committee on Public Accounts (SCOPA), were not entirely happy with the slow pace of finalising these investigations, it encouraged the SIU to report any major stumbling blocks, causing these delays.

The Committee also queried as to the process of, “Blacklisting an individual in relation to one of their companies, instead of also blacklisting the other five the person may also own”, since it will allow individuals to continue submitting tenders; while being investigated.

It said, “The vulnerabilities of the system continue to be exploited because we are not dealing with individuals, which is something we need to consider. There is a need to blacklist people who are party to companies under investigation.”

According to Gerrit Davids, Lead Advisor, TaranisCo Advisory, tendering agency, “We are regularly receiving enquiries from individuals who were previously involved in companies, which were blacklisted, and they are not even aware that they themselves, have also been listed as Restricted Directors.”

Davids says, “When you are a director of a company, which has been blacklisted, all other companies in which you are involved with as a director, will also not be considered for tenders, simply because of your involvement, as such.”

“Companies should ideally conduct a risk analysis when doing joint ventures or have subcontracting arrangements, since individuals involved with those entities will also prevent the bidder from being considered for tenders”, says Davids.

For more information on how to avoid being blacklisted, kindly visit our website: http://www.taranis.co.za/ for more details.

Contact: Gerrit Davids, Lead Advisor | TaranisCo Advisory CC | Mobile. +27 (0) 82 496 1657 | E-mail: gerrit@taranisco.co.za