POLITICAL INVOLVEMENT IN TENDER CORRUPTION IN SOUTH AFRICA

Tender corruption has become one of the most pressing governance challenges in South Africa, undermining transparency, fairness, and public trust in the state. At its core, tender corruption occurs when public procurement processes are manipulated so that government contracts are awarded based on favouritism, bribery, or political influence rather than merit, capacity, or compliance with legal requirements. This practice distorts competition and diverts resources away from essential services.

The Scale of the Problem

South Africa’s tendering system has been plagued by irregular awards and politically motivated decisions for decades. Billions of rands are lost annually due to procurement fraud, with state capture and systemic corruption deeply embedded in government structures. These practices have a direct impact on service delivery, infrastructure development, and economic growth, leaving communities without basic services while politically connected individuals enrich themselves.

Recent Revelations and High-Profile Scandals

The ongoing Madlanga Commission has brought to light shocking cases of tender irregularities and the capture of state departments. Among the most concerning scandals are the alleged R2 billion tender corruptions at Tembisa Hospital, which involved inflated prices and questionable suppliers, and the R360 million SAPS contract awarded to ‘Cat’ Matlala for medical services, which was later suspiciously revoked under unclear circumstances. These cases illustrate how political connections often override competence and legality, creating an environment where corruption thrives.

A Disturbing Trend

A disturbing trend has emerged where legitimate, competent bidders lose tenders overnight to politically connected “tenderpreneurs”. In some instances, tenders are revoked without valid reasons, leaving businesses in financial distress and creating uncertainty in the procurement process. This trend has eroded confidence in public contracting and raised serious questions about the integrity of government decision-making.

Judicial Scrutiny and Case Law

South African courts have increasingly been called upon to address these irregularities. Cases such as Lohan Civil-Tebogo JV v Mangaung Municipality (2009) and Pharaohs Construction JV Kuzobalula v Ingquza Local Municipality (2024) highlight how tenders were awarded without regard to capacity or competence, sighting suspicion of corruption or bias. These judgments underscore the need for judicial oversight to restore fairness and legality in procurement.

Legal Remedies for Affected Bidders

At Gittins Attorneys, we believe in fairness and awarding of tenders based on competency and legitimacy and can assist bidders in challenging unlawful tender decisions through judicial review under the Promotion of Administrative Justice Act (PAJA), claim for damages where cancellations were tainted by fraud or impropriety, and apply for urgent interdicts to prevent re-advertisement or re-award of tenders pending review. Our approach ensures that clients’ rights are protected and that accountability is enforced.

Key Considerations

Timing is critical in these matters, as strict deadlines apply for appeals and legal action. Contracts already signed may create enforceable rights, and proving administrative flaws requires strong evidence. Consulting legal professionals experienced in government contracts and public procurement is essential for navigating this complex landscape.

Conclusion

Tender corruption remains a major obstacle to fair governance and economic development in South Africa. Without decisive legal action and systemic reform, politically driven procurement decisions will continue to undermine the country’s progress and intimidate whistleblowers who fight against it. Businesses and citizens must act swiftly and strategically to protect their interests and uphold the principles of fairness and accountability.