How to avoid getting listed on the Tender Defaulters list
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23-11-2021
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Taranis
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A recent report stated that government’s Tender Defaulters list contains no names of people and companies who have been debarred from doing business with the state.
The issue was also raised in Parliament last week, highlighting that the process of listing persons or entities, must be managed by way of instruction of the Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 0f 2004), allowing organs of state to provide information on those entities, who have been found guilty of wrongdoing in tenders.
The process of listing wrongdoers is primarily the responsibility of Accounting Officers and Accounting Authorities, or organs of state, who by law are instructed to report these entities to National Treasury, in order to restrict them from participating in government tenders.
In terms of the Act, where a Court also finds a person or company guilty of having committed fraud or corruption, it may also rule that such a person or entity be prohibited from doing business with the state.
The Restricted Supplier and Tender Defaulter Lists are primarily in existence to create transparency, reduce the abuse of the public sector procurement system, of which government has recently been criticized, for not fully populating it, with those who were found guilty of fraudulent or corrupt offences.
It was also reported in Parliament, that if there is any failure on the part of an Accounting Officer and Accounting Authority, to make these reports, disciplinary action must be taken against them for not advising National Treasury, with the names of those persons or entities, that should be blacklisted.
The long-awaited Public Procurement Bill will also include clear prescripts, that it will be mandatory for Accounting Officers or Authorities to create interventions to combat fraud and corruption within government’s procurement ecosystem.
According to Gerrit Davids, Lead Advisor at TaranisCo Advisory, tendering agency, “The Preferential Procurement Policy Framework Regulations 2017, clearly instruct organs of state to report persons or entities, who were found guilty of providing false information pertaining to their B-BBEE status, Local Production and Content or any other information, which may have or could affect the evaluation of a tender.”
Davids says, “The organ of state has the right to disqualify a tenderer from a specific process, where they provided such false information and it’s compulsory to report the latter to National Treasury, as to the actions taken against it, and potentially to bar them from doing business with the state for up to 10 years.”
To obtain more information on how to comply with these Tender Regulations, visit www.taranis.co.za
Contact: Gerrit Davids. Lead Advisor | TaranisCo Advisory CC Mobile. +27 (0) 82 496 1657 E-mail: gerrit@taranisco.co.za
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