Grants tender will stand, says minister

2012-08-29 13:15

Cape Town - There was nothing corrupt about the SA Social Security Agency's R10bn grants tender to Cash Paymaster Services (CPS), Social Development Minister Bathabile Dlamini said on Wednesday.

The tender would stand despite a ruling on Tuesday by the high court in Johannesburg that the awarding of the contract was illegal and invalid.

The court, however, did not set aside the tender to provide grants to 10 million South Africans.

Dlamini said irregularities identified in the awarding of the tender were technical and administrative in nature.

"The court acknowledged that those irregularities did not warrant the continued provision of the payment of social grants to be aborted and disrupted," she said.

On allegations from the previous grant distributors, AllPay, that the awarding of the tender was influenced by members of the bid evaluation committee, Dlamini stressed there was no finding of any conflicts of interest when the contract was awarded.

Dlamini said members of both the bid evaluation and adjudicating committees had been vetted.

"Before the (tender) process even started, the State Security Agency checked all people serving on both committees."

The minister said a review of the supply chain management system would however be undertaken. This included the scoring system, which AllPay challenged in the court application.

The Mail&Guardian reported on Tuesday that the Absa bank-owned company claimed its bid scores were "inexplicably" lowered after a technical presentation so that its competitor would win the contract.

"(AllPay's) interim score was reduced from 70% to 58% in every category, regardless of whether the relevant issue was discussed at the meeting or not.

"Despite the fact that applicants had a financial backing from Absa Bank Limited, which is a member of global Barclays group, points were deducted from applicants," the judgment read.

The court criticised the agency for the composition of the bid evaluation committee. It did not meet the requirement of having a supply chain expert on board, which affected the fairness of the process.

Dlamini said the shortcomings would be addressed.

She said the CPS contract would most likely be the last tender awarded, as the government intended paying grants directly to recipients in five years.

"We have to cut out the middle man. We have to ensure that government does it on its own. Sassa was established to pay grants."

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  • ianon.ym - 2012-08-29 13:35

    WTF - so stuff the ruling, we do what we want to do.

  • richard.hipkin - 2012-08-29 13:38

    If it's an administrative shortcoming then fix it so people do not have to get suspicious all the time!! There are too many tenders that fall short due to "administrative short comings" ... Fire those responsible for the workflow and employ people who know how to develop the proper processes.

  • alan.jerrold - 2012-08-29 13:50

    Where the ANC and money are connected, you can be sure that there will always be fraud. Proved probably a hundred thousand tinmes over, so far.

  • bob.small.7547 - 2012-08-29 13:50

    I don't believe you Mr Bathabile Dlamini...!

  • djmain1 - 2012-08-29 13:58

    It's too late anyway - the bribes have already been paid. Phansi cANCer, phansi!!!

  • Mbuyi Mabuya Maphalala - 2012-08-29 14:03

    Accountability is one of the many components of proper governance that lack in our leaders. Why don't they just accept failure and let someone competent to lead, we are tired of this daily circus.

  • nadineelvina.francis - 2012-08-29 14:14

    Can nothing at Govt level get done without someones fingers in the till. I am so sick of it- the stealing and looting is really disgusting. ANC =Parasites

  • neville.chamberlain.509 - 2012-08-29 14:30

    "Dlamini said irregularities identified in the awarding of the tender were technical and administrative in nature." - It's called corruption, malfeasance and maladministration you chop

  • Tobie Vd Vyver - 2012-08-29 14:33

    Can you say incompetence?

      dewalds3 - 2012-08-29 15:23

      No - they are professionals at this.

  • hannah.p.mostert - 2012-08-29 14:41

    How utterly predictable of these fools.. We know you are stealing the money even when you claim its administrations at fault.

  • paul.john.790256 - 2012-08-29 14:47

    Its all a "sour grapes" scenario with ABSA. When the contract was awarded to three contractors in the past, including ABSA, no one complained.

  • braamc - 2012-08-29 19:19

    Cash in your thieve. Filthy thieving cANCer. Everything is corrupt about the tender.

  • chris.hanekom.52 - 2012-08-30 12:24

    I remember CPS making a major BEE deal just before being awarded the tender .... they really think people are stupid , meantime they as dof as paper

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