Covid-19: R41m lost in KZN irregular procurement
KwaZulu-Natal Premier Sihle Zikalala says a forensic investigation into the procurement of protective gear and blankets has found irregular spending of R41 million.
Speaking in Durban, Zikalala revealed the outcomes of three investigations conducted by the provincial Treasury.
The probes were prompted by allegations that the contracts were inflated and were linked to connected individuals.
Zikalala said there were irregular spending of some R13 million in the procurement of PPE by the Department of Social Development.
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"These included the purchase orders for PPE issued to 11 service providers prior to the approval of the procurement submission by the accounting officers. Some of the service providers exceeded the minimum amount of purchase as regulated under Treasury instruction notes.”
He said in some instances quotations were changed three times and on each occasion, the quantities of the items were reduced in order to reduce the total cost of procurement.
"However, most noticeably there was no reduction of the pricing per unit. As a result of the above, the investigation concluded that all payments made to the service providers are irregular to the tune of R13 630 229. Had the department applied the regulated prizes and processes correctly it would have saved R2 231 996," Zikalala explained.
"In some instances, quotations were changed three times and on each occasion, the quantities of items were reduced in order to reduce the total post of procurement. However, most noticeable there was no reduction of the pricing per unit."
Zikalala added in the procurement of emergency blankets for COVID-19, the investigation revealed that there was evidence of abuse of deviation processes and that the entire process should be deemed irregular.
"The investigation further established that the supplier misrepresented the specifications of the blankets and that most blankets supplied were not in accordance with the specifications of 220x24cm in size. "
Zikalala added that the approximate financial loss to the department as a result of the misrepresentations amount to R15, 808, 000.