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SOEs request R37bn’s worth or procurement deviations

JOHANNESBURG – Requested deviations from normal procurement procedures by state-owned enterprises (SOEs) amount to R37 billion for the 2016/2017 financial year.

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According to Treasury’s chief procurement office, Eskom accounts for the largest chunk of the deviations, over R31 billion. 

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A lack of skills and capacity, and weak contract management are among the reasons departments and SOEs asked to depart from normal processes.

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Treasury’s list of public entities with large deviations include the South African Revenue Service (SARS), the Department of Rural Development ,and South African Social Security Agency (Sassa).

According to Willie Mathebula, Treasury’s acting chief procurement officer, “We want to have a framework to deal with this particular issue…to say when do you approve deviations, when do you not approve diviations. In the month that I have been in my position, I cant tell you what justifies approval and what doesnt justify approval. That is why I am proposing a framework to deal with this particular issue.”


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