The inquiry targets claims that procurement orders within the department's communications unit were intentionally structured to bypass open tender procedures.
Treasury Thresholds & Request for Quotations (RFQ)
Statutory rules governing procurement practices in South African government departments:
Public Finance Management Act (PFMA): Regulates financial management in state institutions to ensure revenue, expenditure, assets, and liabilities are managed efficiently.
RFQ Thresholds: Treasury regulations permit direct requests for quotations only up to set monetary limits (such as R1 million); amounts exceeding the threshold require open competitive bidding.
Prohibition of Tender Splitting: Section 16A of National Treasury Regulations explicitly forbids dividing orders or splitting bids to circumvent competitive bidding requirements.
KEY DEVELOPMENTS IN THE INVESTIGATION
Forensic Appointment: Legal firm Bowmans was formally appointed by Acting Director-General Mathabatha Mokonyama to conduct the probe.
Financial Focus: The investigation covers an estimated R15 million in media, livestreaming, and communications expenditure.
Procedural Concerns: Claims center on repeated requests for quotations used instead of single competitive tenders.
Departmental Response: The department stated that it takes claims of financial irregularity seriously and will allow the external investigators to establish the facts.
For Taxpayers: Ensures state funds allocated to public communication and administration are spent in compliance with statutory rules.
For Public Administration: Underscores the enforcement of procurement limits and independent legal reviews when internal financial disputes arise.
What systemic controls can National Treasury introduce to automatically flag repeated RFQs to single vendors?
Will the findings of the Bowmans probe lead to administrative or legal consequences regarding the disputed contracts?
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