Regulation 13 (c) of the Public Service Regulations of 2016 prohibits employees of departments from doing business with the State from 1 August 2016. The transitional provisions of the regulations require that the following actions must be taken by 1 February 2017 in relation to those contracts that were awarded before 1 August 2017:
An employee shall:
- cease conducting business with the organ of the state;
- resign as an employee; or
- resign as a director of a company that conducts business with an organ of state or resign as an employee;
Furthermore, section 30(1) of the Public Service Act of 1994 states “No employee shall perform or engage himself or herself to perform remunerative work outside his or her employment in the relevant department, except with the written permission of the executive authority of the department.”
A total number of 34 employees of the Department of Defence have been recorded as doing business with the Department on contracts secured after 1 August 2016 involving a total of 46 contracts/quotations to a total value of R4 349 466. These findings amount to a contravention of the Public Service Code of Conduct and are being investigated. There were no ongoing contracts awarded before 1 August 2016 where no action was taken to dispose of the interest.
The Department of Military Veterans reports that in the 2016-17 financial year, as per the Department’s records and also confirmed with AGSA, there was a finding made by AGSA, during 2016/17 audit process, where an official of the DMV was detected to be doing business with North West: Edu & Sports Development. This is contravening Regulation 13 (c) of the Public Service Regulations of 2016 and the matter is receiving attention.