The National Treasury has appointed external forensic investigators to probe allegations that a former employee improperly influenced the awarding of transversal contracts, following testimony presented at the Madlanga commission of inquiry.
In a statement on Wednesday, the department said the investigation was prompted by allegations made before the commission that a former National Treasury employee may have played a role in improperly influencing the awarding of several transversal contracts during his tenure.
‘Serious allegations’
The treasury said the allegations were serious and warranted an independent forensic investigation into the awarding of transversal contracts concluded during the period in question.
“The investigation will test the veracity of the allegations made and, importantly, determine any measures needed to further strengthen the procurement and award processes within the transversal contracting system,” the department said.
It added that the findings of the investigation would be made public “in the interest of public trust and good governance”.
The Treasury also confirmed that it has started processing requests for documents from the Madlanga commission and will continue supporting the commission’s work.
“The National Treasury remains committed to transparency, accountability and integrity in public procurement and will take all necessary steps to ensure that any allegations of misconduct are thoroughly investigated and consequence management is applied,” the department said.
How transversal contracts work
Transversal contracts are governed by Treasury Regulation 16A6.5 and are procurement arrangements facilitated by a treasury for goods and services required by multiple public sector entities. The system is designed to leverage government buying power through centrally negotiated contracts while allowing institutions to procure directly from appointed suppliers.
At the National Treasury, transversal contracts are managed by the Office of the Chief Procurement Officer (OCPO), which oversees the sourcing strategy, bidding process and contract awards.
The Treasury said all transversal contracts involve participation from relevant line departments. For example, where a contract relates to the South African Police Service (SAPS), SAPS officials participate in the Bid Specification, Bid Evaluation and Bid Adjudication Committees. These officials provide technical expertise, verify demand requirements and contribute to evaluation and recommendation processes.
Although public sector entities may choose to utilise a transversal contract, the procurement transactions themselves are conducted directly between the participating institution and the appointed suppliers.
“This model combines centralised contracting with decentralised purchasing,” the Treasury explained.
Treasury declines interviews
While acknowledging significant public interest in the matter, the National Treasury said it would not be making officials available for media interviews while the investigation is underway.
“The National Treasury recognises public interest in this matter, however, to protect the integrity of the investigation, the department will not provide media interviews while the process is underway,” it said.
The department said the investigation forms part of its broader commitment to safeguard public procurement systems and ensure any allegations of wrongdoing are thoroughly examined.
- The National Treasury has appointed external forensic investigators to probe allegations that a former employee improperly influenced the awarding of transversal contracts, based on testimony at the Madlanga commission of inquiry.
- The investigation aims to verify the allegations and recommend measures to strengthen procurement and award processes within transversal contracting.
- Transversal contracts, centralized agreements for goods and services used by multiple public entities, are managed by the Treasury’s Office of the Chief Procurement Officer but involve participation from relevant line departments.
- The Treasury emphasizes its commitment to transparency, accountability, and integrity, pledging to make investigation findings public and apply consequence management where necessary.
- To preserve the investigation’s integrity, the National Treasury has declined media interviews while the inquiry is ongoing.
