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This is how KZN government squandered almost R30 million on dodgy blanket tenders

Allegations that the Covid-19 pandemic was being used to loot state coffers came to fore yesterday when KwaZulu-Natal Premier Sihle Zikalala revealed millions had been lost to the province in irregular procurement.

A forensic investigation has revealed that thousands of blankets that cost the provincial government more than R15 million have been lying in a storage unit, damaged and unused for months. It found that there had been an abuse of the Covid-19 emergency procurement provisions, and efforts to “cover up” included attempts to backdate submissions for awards to service providers.

The blankets were procured by the KZN Department of Social Development and were meant for the homeless and needy. While 48000 blankets were ordered and paid for in full, only 4982 blankets were distributed, the investigation found. It also highlighted that invoking the Covid-19 emergency provision procurement may have not been justified.

The investigation into the alleged irregular procurement of blankets and personal protective equipment (PPE) did not reveal the names of those service providers. However, it called for the immediate suspension of a number of high-ranking government officials implicated in the scandal. The investigation found that the procurements were not done through a fair, transparent, competitive and cost-effective system.

During the lengthy media briefing, Zikalala reflected on the findings and recommendations of the investigation. He said it found that a needs analysis had not been done prior to so many blankets being procured. The order for 48000 blankets was issued to four service providers in March this year for R16 million. While each service provider was asked to provide a quote on the same specifications, the investigators noted that the price of the blankets varied from R350 to R559.

“The investigation found that there was no evidence to suggest that the department had considered the difference in pricing to determine the reasonable value; or negotiated any discount rates with the service providers, considering that the blankets were procured in bulk,” Zikalala said. The investigation further established that the suppliers misrepresented the specifications of the blankets and that most blankets supplied were not in accordance with the size specifications.

It also appeared that two service providers operated from their homes, which are listed as their business addresses.

Source: www.iol.co.za
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