The Tshwane Papers


The Tshwane Papers

Swarms of middlemen are profiting from outrageous mark-ups on municipal deals.

Leaked documents reveal ANC patronage network of 50,000 scam suppliers of goods at outrageous markups.

The coalition governments that will run South Africa’s municipalities for the next five years face a mammoth task, having inherited bankrupt and corrupt municipalities that have become synonymous with ANC rule.

Tshwane offers a perfect example. Barely-concealed corruption is to be found in most areas of local government, ranging from crony appointments and inflated tenders, to contracts awarded to unqualified middlemen who add no value to the product they supply. Deals are often the result of a single phone-call made by the middleman, or so-called vendor, who only then pops around to the manufacturer, wholesaler or neighbourhood supermarket to buy the required goods. By the time the product is delivered to the municipality, however, the mark-up can be as much as 400%.

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Submitted by : Lynne Correia of Stellenbosch on 2016-09-18 20:59:14
We all know someone who knows someone. So, the brother of a friend is fairly senior in the maintenance matters in Egoli's municipal buildings. He says (and you can believe it or not) that nothing, but nothing, is done without a tender. Something as simple as having to repair a door knob goes out to "tender". Back in the day, what would have involved Willem or Piet with a tool-box must now be open to the tendering process. The result is that the repair of said door-knob can run into the thousands of rands as each BEE tier gets it's taste of fat.

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