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Wednesday, March 10, 2010

Procurement controversies -- South Africa

Tender fraud frequent - PSC
Corruption frequently occurs at the quotation stages for contracts under the R200 000 threshold [appx. USD 27,000], a Public Service Commission (PSC) presentation to the National Assembly's public service and administration committee showed on Wednesday.

The invitation for quotations, the required number of quotations obtained, and the evaluation of quotations received often do not comply with procurement rules.

he PSC found no quotations were obtained before orders were placed with service providers in 29% of all transactions evaluated.

In 45% of all transactions the required number of quotations was not called for, and in 46% of transactions the quotations were not evaluated as required by procurement rules.

The rate of compliance with procurement rules relating to the invitation of quotations in four provinces, including national departments, was below the average rate of 71%.

"However, these figures are most likely worse, as not all departments at both national and provincial level submitted the requested information," Dreyer said.

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