SA Economy Is Drowning Yet DCS Awarded A R370 Million Tender Whereas It Had R16m In Its Budget


It’s obvious most South Africans are yet to mentally get hold of what economists are saying when they refer to the status our economy is headed to as “junk”. Just recently, we reported about the 40 councilors and other officials eThekwini is sending on a three-days cruise on luxurious MSC Sinfonia to Portuguese Island, Mozambique. Now, the Department of Correctional Services (DCS) have awarded a R370 million tender where as it had R16m in its budget.

Read Here: What Happened To Curtailing Expenditure, Why Is eThekwini Sending 40 Councillors On Cruise?

Who does that? Isn’t it a stupid thing to offer what you don’t have? The Finance Minister has obviously wasted his time sermonizing the nation on the need to take austerity measures to remedy our economy.

As unveiled, DCS awarded the R370 million tender despite the fact that the have no budget for it. That, made MPs in Parliament yesterday, wonder where the department intends to get the money for the tender.

Questions were asked and it emerged that the Treasury is probing the tender. The Treasury related to the standing committee on public accounts (Scopa) that there were irregularities in the tender.

And based on what Justice and Correctional Services Minister Michael Masutha said, the shady details surrounding the tender will be exposed soonest.

Speaking, ANC MP Vincent Smith lamented that it is unwise for the department to disregard the finance minister’s admonition in the 2016 budget outline.

“This is what the minister of finance said last week, you can’t go and buy if you can’t afford it. You go and commit R370m, yet you have R16m and don’t know where the other money will come from,” he wailed.

While DA’s Alan Ross made a similar remark and demanded for an intense investigation into the irregularities of the tender, head of prisons Zacharia Modise informed that “the money available for this year was R86m, and the other funds would come through in the next two years.

He said that in 2017, a total of R120m would be made available by the department and R150m in the 2017/18 financial year,” IOL reports.

Check Out: Highlights Of The 2016 Budget As Presented By Finance Minister Gordhan