State employees conduct R8 billion ‘business’ with government

Issued by David Ross MP – DA Spokesperson for SCOPA
17 Apr 2018 in News

Minister of Finance, Nhlanhla Nene, has revealed shocking statistics which show that 2 704 state employees were actively doing business with National and Provincial government Departments during the period 1 April 2017 to 31 January 2018, to the tune of R8 billion.

Minister Nene made the revelation in the Public Procurement Review report which he tabled in Parliament on Friday, 13 April 2018.

The DA will be writing to the SCOPA Chairperson, requesting that he summon Minister Nene and the Minister of Public Service and Administration, Ayanda Dlodlo to account for this gross violation of the Public Service Act and the Public Service Regulations of 2016.

Public servants doing business with the state were, through the 2016 Public Service Regulations, given a deadline of 31 January 2017 to either resign from the public service od relinquish their business interests.

In addition, the Public Administration Management Act, has an added provision which compels state employees to disclose their financial interests. Towards the end of 2017, 9 689 senior managers revealed that they have private investments or interest in companies.

This unacceptable breach of the law flies in the face of any effort to rid the state of the disease of state capture that had become entrenched during former President Zuma’s tenure.

President Ramaphosa and his executive must take urgent steps to deal with the culture of lawlessness that has become pervasive in state procurement, in open defiance to government employee ethical conduct.

South Africa cannot continue to be held to ransom by predatory elite that continues to reap undue benefit from the state without due regard for the law. Parliament has an obligation to ensure that this culture is eliminated once and for all.