PRETORIA, Gauteng — In a decisive move to uphold public procurement integrity, the National Treasury has initiated a formal probe following critical testimony at the Madlanga Commission regarding the alleged manipulation of transversal contracts by a former departmental official.
The state finance department has enlisted external forensic investigators to lead the inquiry, which was triggered by serious claims of improper conduct that surfaced during the commission’s proceedings.
According to a statement released by the department, the allegations center on a former employee who reportedly exerted undue influence over the awarding of various transversal contracts during their tenure. Treating these claims with the utmost seriousness, the Treasury has mandated a comprehensive review of all transversal contracts concluded during that specific timeframe.
The primary objective of the external probe is twofold: to establish the factual basis of the allegations and to identify systemic vulnerabilities. By doing so, the department aims to implement robust measures that will fortify the procurement and award processes within the transversal contracting framework. To maintain public trust and ensure good governance, the Treasury has committed to publishing the investigation’s findings once concluded.
Commission Cooperation and Consequence Management
Beyond the internal probe, the National Treasury confirmed it is actively processing documentation requests from the Madlanga Commission, pledging full cooperation to support the commission’s broader mandate.
The department also used the opportunity to reaffirm its institutional values. It assured the public that transparency, accountability, and integrity remain the cornerstones of its procurement operations. Should the forensic investigation uncover any substantiated misconduct, the Treasury guaranteed that strict consequence management measures will be applied without hesitation.
Demystifying Transversal Contracts
At the heart of the investigation is the transversal contracting system, a procurement model designed to streamline government spending. The National Treasury defines these as centralized procurement arrangements facilitating the acquisition of goods and services required by multiple public sector entities.
Oversight of these contracts falls under the Office of the Chief Procurement Officer, which dictates the sourcing strategy, manages the bid process, and executes the final contract awards.
However, this centralized model does not exclude line departments from the process. The Treasury emphasized that user departments play an active, mandatory role in procurement. For instance, when a transversal contract is earmarked for the South African Police Service (SAPS), SAPS officials are integrated into the Bid Specification, Bid Evaluation, and Bid Adjudication Committees. Their participation is crucial for providing sector-specific technical expertise, verifying actual demand, and guiding the evaluation and recommendation phases.
While the contracting is centralized, the actual purchasing is decentralized. Public entities can opt into these transversal contracts, but the financial transactions occur directly between the participating institution and the appointed supplier.
Media Blackout During Probe
Acknowledging the intense public and media interest surrounding the Madlanga Commission revelations, the National Treasury addressed the spotlight on the matter. However, to prevent any compromise of the ongoing forensic process, the department has instituted a temporary media blackout, stating it will not grant interviews until the investigation is fully resolved.