This move follows years of increasing corruption, financial mismanagement and systemic failures. (Archive photo)
The Association of Public Servants (USA) is considering legal action to challenge the constitutionality and continued operation of South Africa’s public tender system.
This move follows years of increasing corruption, financial mismanagement and systemic failures documented by the Auditor General (AG), law enforcement agencies and parliamentary committees.
US spokesperson Reuben Maleka says the association is compelled to act in the public interest, to protect the integrity of public administration, workers and citizens, who continue to bear the consequences of widespread procurement failures.
Mounting evidence confirms South Africa’s tendering system has become synonymous with irregularities, waste and malpractice. “From 2018 to 2024, national and provincial departments incurred R407 billion in irregular expenditure, of which R177 billion was the most in 2020, mainly due to failures at NSFAS and Transnet. Over the same period, the government recorded R10.3 billion in fruitless and wasteful expenditure, including payments for services not delivered and fines due to poor contract management.
(Archive photo: Facebook)
“In the latest audit cycle of the Public Financial Management Act (PFMA) (2023-’24), the OG reported R38.8 billion in overspending and more than R49.5 billion in irregular expenditure, driven by widespread non-compliance and a persistent ‘culture in which non-compliance is tolerated'”. Maleka says the figures show a systemic collapse of procurement management. The AG further identified 266 material irregularities in 2022-23, amounting to R14.34 billion. This includes hospitals that were built but never put into use. “The Tembisa hospital and the police are typical examples of what the tender system can do to the country and its citizens.”
“The catalog of failures confirms tender processes across government spheres have been placed under suspicion.”
Maleka says section 217 of the Constitution requires public procurement to be fair, transparent, competitive and cost-effective. Evidence shows the tender system no longer meets any of these standards. Repeated AG reports highlight procurement without competitive bidding processes, contracts awarded to unqualified suppliers, goods paid for but not delivered, and a culture of no consequences, where wrongdoers regularly evade accountability.
The US believes the tender system in its current form is illogical, unconstitutional and contrary to the principles of clean governance.