Calls for public blacklist

Cape Town - The Democratic Alliance urged the National Treasury on Wednesday to make public a blacklist of companies banned from doing business with government because they failed to deliver on contracts in the past.

The call came after Transport Minister Sibusiso Ndelebele said in response to a parliamentary question by the party that the Treasury kept a confidential list of companies and vetted companies that tendered for contracts with other departments.

The DA had asked Ndebele whether his department kept a database of companies that had reneged on contracts and how many featured on the list.

Ndebele replied that the finance ministry kept the list and that other departments must, when awarding tenders, supply it with the names of bidders.

"The department does not know how many companies are on this database. The National Treasury keeps the list confidential," he said.

"According to Treasury Regulations 16A9.1(c) an accounting officer/authority must check the National Treasury's database prior to awarding any contracts to ensure that no recommended bidder or any of its directors are listed as companies or persons prohibited from doing business with the public sector."

The DA said the names of restricted companies should be made public.

"The Treasury's secrecy on the matter results in departments being unable to create their own lists of dodgy companies to prevent future business relations with. "There is no reason why such a list would be kept confidential; it is the prerogative of the taxpayer to know how, when and by whom their money has been spent neglectfully.

"If a company fails to deliver on a tender and benefits unjustly from public funds, they should be named-and-shamed and not given protection from Treasury."

It said the system also created delays which could slow down service delivery.

- Sapa