Supply Chain/Procurement and Tender Fraud

The CoE SCM Policy provides that:

COE commits itself to a policy of fair dealing and integrity in the conducting of its SCM activities.

All SCM officials and role players in the SCM system are required to promote mutual trust and respect and act with integrity.

Declaration of Interest

A SCM practitioner or other role player, or close family member, partner or associate of such practitioner or other role player involved in the implementation of the SCM policy, shall declare details of any private or business interest which that person or any close family member, partner or associate may have in any proposed procurement or disposal process of, or in any award of a contract by COE.

In addition the official/s shall immediately withdraw from participating in any manner whatsoever in the process relating to the contract.

SCM officials shall recognise and disclose any conflict of interest that may arise.

SCM officials or other role players shall not place themselves under any financial or other obligation to individuals or organizations that might seek to influence them in the performance of their official duties

How to combat abuse of SCM Processes?

A bid of any bidder may be disregarded if that bidder or any of its directors have:

  • Abused the institution’s supply chain management system;
  • Committed fraud or any other improper conduct
  • Failed to perform satisfactorily on any previous contract;
  • Listed in the Register for Tender Defaulters in terms of section 29 of Prevention and Combating of Corrupt Activities Act (No 12 of 2004).
  • Any employee suspected of acting contrary to this policy, will be dealt with in terms of the disciplinary code of COE.

The Accounting Officer shall:

  • Take all reasonable steps to prevent abuse, corruption and collusion through at least regular internal audit reviews and external audit as well as risk assessments in the SCM environment.
  • Investigate any allegations against an official or other role-player of fraud, corruption, favouritism, unfair or irregular practices or failure to comply with the SCM Policy
  • Take steps against such official or other role-player and inform Council and National Treasury of such steps in terms of section 32 of the MFMA.
  • Report any conduct that may constitute criminal offence to the SAPS (South African Police Services)
  • Ensure that the COE considers all complaints received and shall respond thereto in a timely manner.

Fraudulent and Collusive Practices

Where a service provider/contractor has acted fraudulently, through bribery, furnishing incorrect information, collusion, bid rigging or fronting, the COE shall vigorously pursue all legal remedies available. (Regulations 13 of the Preferential Procurement Regulations, 2011).

Section 4(1)(b)(iii) of the Competition Act No. 89 of 1998, as amended, prohibits any agreement between, or concerted practice by firms, or a decision by an association of firms, if it is between parties in a horizontal relationship and if it involves collusive bidding/ tendering (or bid rigging).

In order to deter any form of collusive bidding (bid rigging), bidders shall confirm that they have not entered into any such practices by completing a certificate to that effect.

Contravention of the Prevention of Combatting of Corrupt Activities Act and/or the Financial Misconduct Regulations will result in prosecution and imprisonment.

Did you know: City of Ekurhuleni has recently become victim to phishing and procurement fraud? Fraudsters try to get hold of personal information, money and goods by pretending to be employees of COE.

What to look out for?

Beware of FRONTING FRAUD-where organisations and individuals pretend to be employees of COE. These individuals pretend to be partners or suppliers of the municipality and for a nominal fee; they pretend to enrol SMME’S in our communities and promise to win contracts with COE.

Beware of PHISING FRAUD- where fraudsters use procurement related scams, in the form of RFQ’S in an attempt to get your personal details and information, money and even goods

Do's

  • Immediately report allegations of supply chain, procurement and tender fraud.
  • Always be on the look out for fraudulent emails or false documents/adverts/scams
  • Be Vigalent, report any suspicious activity
  • If unsure always contact the COE central procurement office for more information regarding existing tenders.

Dont's

  • Do not respond to e-mails requesting your banking details and other personal information
  • Never make cash payments to officials
  • Never take a bribe
  • Do not be a party to crime