National Treasury probes claims over public procurement contracts

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

South Africa's National Treasury has launched an independent investigation into allegations of improper conduct involving a former employee following testimony presented before the Madlanga Commission. The department announced that external forensic investigators will conduct the probe, which will examine claims that the former official improperly influenced the awarding of several transversal contracts during their tenure at the National Treasury.

According to the department, the investigation will assess the accuracy of the allegations while also reviewing whether additional safeguards are needed to strengthen procurement processes within the government's transversal contracting system. National Treasury said the findings of the investigation will be made public in the interest of transparency, accountability and good governance.

Investigation to review procurement processes

The department confirmed it has already begun processing documentation requested by the Madlanga Commission and pledged its full cooperation with the inquiry. National Treasury said it remains committed to supporting the Commission's work and will continue to provide the necessary assistance throughout the investigation. It also reaffirmed its commitment to maintaining integrity in public procurement, stating that any misconduct uncovered during the investigation will be addressed through appropriate consequence management. While acknowledging the significant public interest in the matter, the department said it would not provide media interviews while the investigation is underway in order to protect the integrity of the process.

Treasury explains how transversal contracts operate

National Treasury also outlined how transversal contracts function within South Africa's public procurement system. The contracts are centrally arranged by the Office of the Chief Procurement Officer for goods and services commonly required by multiple government departments and public institutions. The office is responsible for developing procurement strategies, managing bidding processes and awarding contracts.

The department explained that line departments actively participate in the procurement process. For example, when a transversal contract is issued for the South African Police Service (SAPS), SAPS officials serve on the bid specification, evaluation and adjudication committees to provide technical expertise, verify operational requirements and contribute to procurement decisions.

Although National Treasury manages the contracts centrally, individual government departments and public entities conduct their own purchasing directly with the appointed suppliers. The department said this model combines the efficiencies of centralised contracting with decentralised procurement by participating institutions. The investigation is expected to determine whether existing procurement controls remain adequate and identify any reforms needed to strengthen accountability and public confidence in the government's procurement system.