Response to media reports over Mandela Memorials in Mpumalanga
23 August 2016
The Office of the Premier in Mpumalanga hereby wishes to respond to recent media reports over the Mandela Memorial services organized in December 2013. The allegations that the provincial government did not follow prescribed procurement procedures are unfounded and false.
The provincial government recognizes the claims and a perception that might be created conveying a message that there might have been a wasteful and fruitless expenditure in procuring the goods and services for the Mandela Memorial services organized in December 2013.
The Mandela Memorials expenditure was classified as unforeseen, unavoidable, as the provincial government could not have predicted death, thus making it impractical to follow all the bidding processes due to time limitations.
We wish to state however that the provincial government followed all the necessary supply chain processes prescribed in the National Treasury Practice Note No 8 of 2007/2008 which states in bullet number 3.4.3 that;
“Should it be impractical to invite competitive bids for specific procurement, e.g. in urgent or emergency cases or in case of a sole supplier, the Accounting officer/ Authority may procure the required goods or services by other means, such as price quotations or negotiations in accordance with Treasury Regulation 16A6.4…”
In the same paragraph, it further states that; “The reasons for deviating from inviting competitive bids should be recorded and approved by the Accounting Authority or his or her delegate.
Accounting Officers are required to report within ten (10) working days to the relevant treasury and the Auditor-General all cases where goods and services above the value of R1 million (VAT inclusive) were procured in terms of Treasury Regulation 16A6.4.
The report must include the description of the goods or services, the name/s of the supplier/s, the amount/s involved and the reasons for dispensing with prescribed competitive bidding process.
The provincial government reported deviation to legislature, provincial treasury as well as the Auditor-General in respect of implementing the National Treasury Practice Note No 8 of 2007/2008.
There is no truth in the allegations that the provincial government is not cooperating with the National Treasury. We have an open communication relationship with our National Treasury on all matters pertaining to issues of financial management and governance in the province.
It is our understanding that all information requests from the National Treasury are being responded to at all times. At no point has the provincial government failed to cooperate with the National Treasury. We view this as a deliberate attempt to project the provincial government in a negative light.
The provincial government is also completely cooperating with the Office of the Public Protector, following a demand for an investigation into the matter by the opposition parties from the provincial legislature.
On the allegations that the Standard Bank was “forced” by the provincial government to hastily pay the Carol Bouwer Productions, we wish to clarify and affirm that the provincial government has a contract with aforementioned bank.
There was nothing untoward regarding the transaction to the Carol Bouwer Productions, as it is always the responsibility of the government to pay the contractors for the service rendered. The transaction was authorized as it was within the delegation of the Accounting Authority in terms of expenditure management 8.2.1 of the Public Finance Management Act, No.1 of 1999 and Regulations.
The provincial government would therefore not be drawn in the contractor-sub-contractor arrangement, as we are not involved in their relationship and payment processes.
The provincial government would always ensure sound financial management in order to adhere to good governance.
Issued by Mpumalanga Provincial Government
Enquiries:
Spokesperson: Mpumalanga Premier
Mpumalanga Provincial Government
Office of the Premier
Zibonele Mncwango
Tel: (013) 766 2453
Mobile: 079 491 0163
E-mail: zmncwango@mpg.gov.za OR mncwangoz@prem.mpg.gov.za