SANDF blows R51 million in irregular expenditure 

The South African National Defence Force (SANDF) has totalled R51.2 million in irregular expenditure during the first quarter of the 2020/21 financial year, the largest being an irregularly awarded asset management contract.

The portfolio committee on defence and military veterans was briefed by the Department of Defence in Parliament on Wednesday, to report back on the first quarter following the implementation of the 2019 budget review recommendations (BRRR).

Part of the R51.2 million of the department’s irregular expenditure was due to a R39 million contract for asset management which was awarded in the 2017/18 financial year through unfair bidding. This also includes R6.8 million irregular expenditure for the extension of a contract for quantity survey fees for the refurbishment of 1 Mil hospital without the approval of National Treasury.

R3.2 million was also irregularly spent on a deal for the acquisition of spare parts for the shipyards, which was awarded in 2018/19 year through incorrect bidding evaluation processes.

Procurement processes were also not followed for the R1.4 million construction and building of a diving swimming pool for the training for the SA Navy, and R181,500 went to 3-year garden services for the Castle of Good Hope, while points awarded for functionality of the bid were incorrectly calculated.

Also read: No money to modernise current SANDF equipment, Parliament hears

But while this might seem exorbitant, it is only a tiny fraction of the department’s entire budget, said defence analyst Helmoed Romer-Heitman.

“The number is relatively small, compared to the budget of other departments. The problem is the defence force has a lot of people doing things and some are not bright and honest… The defence force needs to get it’s book keeping in order. The problem, I think, is party that the system is cumbersome and a lot is over-sensitised and if you do things by the book, you never get things done. Another problem is some of the people who do the stealing hide behind old [political] party factions,” he said.

Now investigations were underway for several cases of irregular expenditure, which include a R604 million asset management contract, where investigations commenced on 24 June 2020, as well as R339 million which involved the logistics division in the defence force.

To be successful, however, the defence force needed to improve their legal team, which Romer-Heitman says has had a bad track record.

“I think the department of defence needs to do more, but they probably first have to do something to improve their investigation unit, particularly their legal team so that dockets and evidence are lined up.”

rorisangk@citizen.co.za

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