PRETORIA, Gauteng — Following recent testimony at the Madlanga Commission, the National Treasury has initiated a comprehensive external forensic investigation into allegations that a former departmental employee improperly influenced the awarding of transversal contracts.
The state department has appointed independent forensic investigators to lead the inquiry, which was triggered by serious claims surfaced during the commission’s proceedings.
In an official statement released on Wednesday, the department emphasized the gravity of the situation: “It has been alleged at the Madlanga Commission that a former employee improperly influenced the awarding of various transversal contracts during his time at the National Treasury. In light of the seriousness of the allegations presented, the National Treasury has initiated an investigation into the awarding of transversal contracts concluded during this period.”
The primary objective of this inquiry is to verify the truthfulness of the claims and identify actionable measures to fortify the system. “The investigation will test the veracity of the allegations made and, importantly, determine any measures needed to further strengthen the procurement and award processes within the transversal contracting system. Findings of this investigation will be made public in the interest of public trust and good governance,” the department stated.
Furthermore, the Treasury confirmed that it has already begun fulfilling the Commission’s requests for documentation. “National Treasury… will continue to ensure that the Commission’s work is fully supported by the department,” the statement affirmed.
Reiterating its dedication to ethical governance, the department assured the public: “The National Treasury remains committed to transparency, accountability and integrity in public procurement and will take all necessary steps to ensure that any allegations of misconduct are thoroughly investigated and consequence management is applied.”
Understanding Transversal Contracts
To provide context on the procurement model under scrutiny, the National Treasury clarified that transversal contracts are arrangements the department facilitates for “goods and services required by multiple public sector entities.”
These agreements are overseen by the Office of the Chief Procurement Officer, which is tasked with managing the “sourcing strategy, bid process, and contract award.”
Despite the centralized nature of these contracts, line departments play an active role in the procurement lifecycle. “All transversal contracts managed by the National Treasury involve line departments who participate in the procurement process,” the department explained.
For instance, if a transversal contract is designated for the South African Police Service (SAPS), SAPS officials are integrated into the oversight structures. “For example, if a transversal contract is for the South African Police Service [SAPS], officials from SAPS would participate in the Bid Specification, Bid Evaluation and Bid Adjudication Committees, where they provide sector-specific expertise, confirm demand requirements, and contribute to evaluation and recommendation processes,” the Treasury noted.
While public sector entities have the option to leverage these transversal contracts, the actual purchasing is decentralized. “However, procurement transactions are conducted directly between the participating institution and the appointed suppliers. This model therefore combines centralised contracting with decentralised purchasing.”
Given the high public interest surrounding the Madlanga Commission revelations, the National Treasury acknowledged the media’s focus on the matter. However, to safeguard the integrity of the ongoing forensic process, the department declared: “The National Treasury recognises public interest in this matter; however, to protect the integrity of the investigation, the department will not provide media interviews while the process is underway.”
