The Department of Correctional Services is the latest to face a backlash over inflated tender prices following the revelation that it was charged R726.57 per litre for cooking oil, which costs between R26 and R29. Pictured is DCS National Commissioner Makgothi Thobakgale, who has said that the figure was a data entry mistake.
Government institutions and departments have, over the past few years, paid exorbitant prices for goods and services due to inflated tender pricing, often termed as procurement inflation or procurement leakage.
These have been described as a heavy drain on the national purse. The Auditor-General of South Africa has continually flagged that a staggering percentage of material financial losses in the government is driven by the purchase of goods and services at prices far exceeding open-market value.
The high-profile examples of tender inflation that the state has legally bound itself to pay or has already paid out have caused public outcry, as the country faces insufficient budget for service delivery to citizens.
Five times, the government institutions overpaid for goods and services through tenders.
