NATIONAL ASSEMBLY
QUESTION 1464
WRITTEN REPLY 25 SEPTEMBER 2009
1464. The Leader of the Opposition (DA) to ask the Minister of Public
Works
(1) Whether, with reference to his reply to oral question 84 on 16
September 2009, the investigation into the company by the special
investigating unit of the Department of Social Development (details
furnished) was taken into consideration when the tender was awarded; if
not, why not; if so, why was the tender awarded to this company;
(2) Whether his department will award any tenders to this company in
future; if so, why? NW1823E
REPLY
(1) No, because such information was never transmitted to my department,
through any state machinery, by Department of Social Development,
whatsoever.
However, it is not in the nature of public sector procurement regime to
disqualify any Bidder on the basis of pending investigation by any organ of
state. Disqualifying bidders happens if the company in question, including
its Directors, (i) was blacklisted due to non-performance and / or found
guilty and convicted by the court of law and placed in the National
Treasury Register of Tender Defaulters, (ii) failed to provide written
proof from the South African Revenue Services that it either has no
outstanding tax obligation or has made suitable arrangements to meet
outstanding tax obligation, (iii) has committed a corrupt or fraudulent act
in competing for the said contract, the Department could have either
rejected or not considered their proposal / bid for the award, (iv) didnât
satisfy all the requirements, meaning that it was administratively non-
responsive in terms of the pre-determined criteria, and (v) it was not the
highest scoring bidder.
It must also be noted that disqualifying any company on the grounds of any
other reasons except for the ones mentioned supra does not augur well with
the procurement ethical principles as enshrined in the Constitution of the
Republic of South Africa [section 217 (1) & (2)].
(2), Awarding of tenders to any company when tendering / bidding for a
specific project is based on the following requirements:
(i) Meeting and satisfying the pre-determined criteria
(ii) Scoring of the highest points
(iii) Tax matters still in order or Valid Tax Clearance Certificate
(iv) Company not having committed a corrupt or fraudulent act in competing
for the contract that will be considered at that point in time.
(v) Not being blacklisted due to non-performance and / or found guilty and
convicted by the court of law and placed in the National Treasury Register
of Blacklisted Companies and/or Tender Defaulters.
On the contrary, it is also my contention that the only grounds for not
awarding a contract to a bidder who satisfies the entire requirements are
âblacklistingâ, lack of capability or capacity, legal barriers or conflicts
of interest.