A governance expert says implementing consequence management for transgressions, especially in the procurement space, would deter future violations.
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South Africa’s Supply Chain Management (SCM) system, which requires physical documents to be submitted to authorities, has come under scrutiny with allegations of bid-rigging and the disappearance of certain documents from bids, with digitisation as a suggested solution.
The Madlanga Commission of Inquiry recently heard how the City of Tshwane was taken to court by bidders because documents had gone missing from the bid submissions.
This was in relation to the now-controversial R2.9 billion security tender, TMPD 02-2016/2017 which included two components: monthly payments for watchman services covering the 22 security companies and ad hoc services assigned as needed to suit the requirements of various municipal departments.
The Chairperson of the Commission, Justice Mbuyiseli Madlanga, asked Tshukudu Malatji, a Director for Asset Protection Services at the City of Tshwane Metro Police Department (TMPD), about shortcomings in the procurement process that enable tender manipulation.
Malatji stated that, “It could be a number of factors, which might include the fact that for as long as tenders are submitted on files like this (physical file). And to these files, officials have access to each and every file within the Supply Chain Management. Such an incident (tender manipulation) could take place.”
He added that, as an alternative, going forward, tender responses should be more electronic as compared to the physical filing system.
“In the public space, there are complaints that files are submitted and documents are taken out. If files could be submitted electronically, that would address the problem,” Malatji told the Commission.
The Parliament’s Ad Hoc Committee investigation into allegations made by KwaZulu-Natal Police Commissioner Lieutenant General Nhlanhla Mkhwanazi has also raised concerns that the SAPS evaluation process relies heavily on manual documentation, which makes the system highly susceptible to abuse and manipulation.
This was mostly in relation to the SAPS R360 million tender awarded to Medicare24, a company owned by attempted murder accused tenderpreneur Vusimuzi ‘Cat’ Matlala.
KwaZulu-Natal, on the other hand, is implementing its e-Procurement system, which aims to combat tender fraud by eliminating human involvement in the selection process. The e-Procurement system has been piloted on three different provincial departments since 2025, and will be officially launched before the end of April 2026.
KwaZulu-Natal Finance MEC Francois Rodgers previously said that the system will allow for the submission of quotations and bids electronically, and it will use official supplier records and required compliance information to identify service providers in line with legislative prescripts automatically.
Professor Purshottama Reddy, a Public Governance specialist at the Graduate School of Business and Leadership at the University of KwaZulu-Natal, said the implementation of consequence management for any transgressions, especially in the procurement space, would deter any future violations.
Lars Gumede, a tech expert and founder of NowNow, in his recent paper titled ‘How South Africa can leverage the Artificial Intelligence Revolution’ commissioned by Inclusive Society, states that the country must invest in digital infrastructure, support AI hubs and innovation, invest in education and reskilling for the future, and use AI to boost its strategic opportunities.
“For developing nations like South Africa, the opportunity exists for radical growth. If proper investment is made in educating and reskilling people for the world of AI, the country’s enormous potential could be unleashed. If the people of South Africa actively participate in the task of finding the right path and the government endeavors to create the conditions for people to thrive, there is no limit to the success we may see,” Gumede said.
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Lars Gumede, a tech expert and founder of NowNow, in his recent paper titled ‘How South Africa can leverage the Artificial Intelligence Revolution’ commissioned by Inclusive Society, states that the country must invest in digital infrastructure, support AI hubs and innovation, invest in education and reskilling for the future, and use AI to boost its strategic opportunities.
“For developing nations like South Africa, the opportunity exists for radical growth. If proper investment is made in educating and reskilling people for the world of AI, the country’s enormous potential could be unleashed. If the people of South Africa actively participate in the task of finding the right path and the government endeavors to create the conditions for people to thrive, there is no limit to the success we may see,” Gumede said.
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