Joburg's supply chain next to be investigated

Original Post Source

During the first council sitting of the year, City of Johannesburg’s Integrated Annual Report was tabled and showed irregularities within supply chain management.

“These irregularities will be further investigated by the City’s anti-corruption unit headed by Shadrack Sibiya,” said Executive Mayor of Johannesburg, Herman Mashaba.

Within the City’s R52.6 billion budget for the 2015/16 financial year, about R18 million in tenders benefited three State employees, two of whom are within the City.

Mashaba said the City’s supply chain management regulations plainly prohibit awards to persons or entities owned or managed by persons in the service of the City, or if they are in service of any other State institution.

The City of Johannesburg mayor, Herman Mashaba. Photo: File/Chantelle Fourie.

The City of Johannesburg mayor, Herman Mashaba. Photo: File/Chantelle Fourie.

Furthermore, the auditor general found that close family members of seven officials had an interest in awards made to the value of more than R4 million. Three of these officials did not declare their interest. A total of 56 per cent of the awards to close family members, amounting to more than R2 million, were not disclosed in the financial statements.

During the same sitting, the council passed an amendment to the supply chain management policy that would, in future, ensure an open and transparent tender system.

As from February, the Tender Adjudication Committee will now admit members of the public directly into their proceedings.

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