This as National Treasury asked the agency – in a letter dated 25 February 2022 -  to respond to allegations that it is selling bid documents for R10 000. 

In a reply to a set of questions sent by OFM News to the agency, it admitted selling documents. In their response to the enquiry from National Treasury, the agency states that it advertised for various multi-million rand projects and that the first phase is a difficult level for any small business to participate in.

It further guarantees National Treasury that the process is all inclusive due to its two-phase approach. The agency goes further and recommends that Treasury should put a “threshold cap” on the “selling of tenders” as some government entities have sold tenders to the tune of R20 000.  

DA MP George Michalakis says this amount cannot be described as an administrative fee. He says it is understandable that government departments, entities, and municipalities are allowed to charge an administrative fee. He says it should, however, be a fee only, and R10 000 does not constitute a fee.

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“The purpose of a fee is administrative, so to sell such bid documents at such an amount, you are seriously limiting the poor people who can tender. So in essence it limits the opportunities only to those BEE cadres who are affluent enough to pay this exorbitant amount. So no further empowerment takes place and the municipality gets limited value for money,” says Michalakis.        

OFM News earlier reported that millions were transferred to the agency. In the agency’s board report it reports that it is tasked with conducting, amongst other things, feasibility studies. Only one of these studies, however, led to projects.

OFM News