National Treasury launches probe into transversal contracts after Madlanga Commission allegations

The National Treasury has launched an independent forensic investigation into the awarding of transversal contracts after allegations of improper conduct emerged during proceedings before the Madlanga Commission of Inquiry.

The investigation follows testimony implicating a former National Treasury employee, who is accused of improperly influencing the awarding of several transversal contracts while employed by the department.

In a statement on Wednesday, the Treasury said the seriousness of the allegations warranted an independent investigation, which will be conducted by external forensic investigators appointed by the department.

The probe will seek to determine the accuracy of the allegations and identify whether additional measures are needed to strengthen procurement and contract award processes within the transversal contracting system.

The Treasury said the findings of the investigation will be made public in the interest of transparency, accountability and good governance.

The department confirmed that it has already begun processing requests for documents from the Madlanga Commission and will continue to cooperate fully with the inquiry.

National Treasury reiterated its commitment to integrity in public procurement, saying all allegations of misconduct would be thoroughly investigated and that appropriate consequence management would be implemented where wrongdoing is established.

Transversal contracts are procurement arrangements managed by the Office of the Chief Procurement Officer (OCPO) for goods and services required by multiple public sector institutions.

While the National Treasury oversees the procurement process and contract awards, line departments participate in the bid specification, evaluation and adjudication processes by providing technical expertise and confirming operational requirements.

Once a transversal contract has been awarded, individual government departments and public entities may choose to make use of it, with procurement transactions taking place directly between the participating institution and the appointed suppliers.

The Treasury acknowledged the significant public interest in the matter but said it would not conduct media interviews while the investigation is underway in order to protect the integrity of the process.