President Cyril Ramaphosa. (Delwyn Verasamy/M&G)
President Cyril Ramaphosa has conceded that the government tender system encourages corruption, saying too many contracts are issued to “middlemen” who do not have the relevant competence.
“This is a waste of public funds, encourages corruption and does not advance real economic empowerment. One practice that has weakened the state is outsourcing functions that should be performed by government departments and public bodies,” Ramaphosa said while delivering a political report to delegates at the ANC’s National General Council (NGC) being held in Johannesburg this week.
The council will discuss renewal, review policy resolutions, consider the party’s positions, and assess the state of the organisation, including how far it has gone in implementing the resolutions of its 2022 national elective conference.
To address widespread misconduct and corruption, the public procurement system needs substantive reform, Ramaphosa said.
“The national treasury is preparing for the implementation of the Public Procurement Act, which will introduce a new framework and establish a Public Procurement Office,” he said.
“We need to ensure that procurement is used as an instrument to build black- and women-owned companies that produce the products and provide the services that the government needs.”
Ramaphosa said outsourcing by government departments opens the door to corruption, with many cases of tender manipulation, bribery, overpricing, and the use of front companies.
“This is a waste of public funds, encourages corruption and does not advance real economic empowerment. One practice that has weakened the state is outsourcing functions that should be performed by government departments and public bodies,” he told ANC delegates.
“The effect of this is that public institutions no longer have the skills and capabilities they need because they are outsourcing many of the functions that should be performed by a capable state. We need to get rid of the outsourcing of simple and straightforward functions in our government systems,” he said.
“It also makes those who work for the entities we outsource to vulnerable, because their job security is always tied to the tenders those companies receive. Once the tenders come to an end, they become unemployed.”
Ramaphosa reiterated the need for the ANC to renew itself, saying the former liberation movement must be united around its values and principles and that enhancing the quality of its membership and leadership was crucial.
The ANC’s membership system was being overhauled to ensure that it attracted people willing to serve the people of South Africa, he added.
The party, which has governed South Africa since the advent of democracy in 1994, is still taking stock after its support slumped to around 40% percent at last year’s general elections, forcing Ramaphosa to form a government of national unity with nine other parties, including the former official opposition Democratic Alliance.
“A renewed ANC must impose discipline in the ranks of our membership. As renewal gains momentum, those whose conduct conflicts with our values and principles — the criminals, the corrupt, the careerists, extortionists, factionalists, and those who actively work against the organisation — should find themselves outside of the ANC,” Ramaphosa said on Monday.
“The renewal of the ANC must be reflected in our everyday behaviour as members, in how we conduct ourselves, including how we post either against each other or about the ANC on social media.”
“Let us be known for excellence, ethics, humility, hard work, and competence. Enhancing the quality of membership is key to the renewal of the ANC.”