Photo Credit; Getty ImagesFinance Minister Enoch Godongwana confirmed in a parliamentary exchange that 509 cases had been flagged for possible blacklisting, although only 18 suppliers have so far been formally restricted.
The remaining 491 potential cases are still awaiting documentation from the government entities that must initiate the process.
Godongwana stressed that the National Treasury is not empowered to act without referrals. He noted that the Presidency submitted the full list of cases to Treasury in September, prompting Treasury to follow up with major state institutions, including Eskom, the Umngeni Water Board, Transnet, and several provincial departments.
Some entities, such as the MICT SETA, have filed the required information, while others have had their submissions returned due to incomplete details.
This, Godongwana said, is a major reason for the slow pace, adding that the restriction process must begin with the organ of state affected by misconduct.
Even when the Special Investigating Unit identifies wrongdoing, the administrative and legal steps must still be followed.
“National Treasury does not initiate the restriction but facilitates the process of loading the restriction on the database of restricted suppliers,” he explained.
The tightening of procurement controls comes as the Department of Public Works advances a new national database of delinquent contractors and consultants who fail to deliver on state projects.
Public Works Minister Dean Macpherson said the system is designed to stop firms that perform poorly in one province from resurfacing under new names in another.
Public frustration with non-performing contractors has grown sharply, Macpherson said, citing failed projects, shrinking budgets, and weak oversight.
Over the past year, his department has blacklisted 40 companies, a dramatic shift from the one blacklist case recorded in the previous two decades.
“It should be an honour to do business with the state. Unfortunately, it is seen as an opportunity to rip off the state,” he said.
