By 
PRETORIA — The National Treasury has officially launched an independent forensic investigation into the awarding of several transversal contracts following damning allegations of improper conduct involving a former employee.
The probe comes in the wake of testimony delivered at the Madlanga Commission, which implicated a former Treasury official in allegedly manipulating procurement processes.
According to a media statement released by the National Treasury on Wednesday, the department has appointed external forensic investigators to spearhead the inquiry. The investigation aims to rigorously test the veracity of the claims and review the current internal mechanisms governing state procurement.
Allegations of Improper Influence
The allegations center around a former Treasury employee who is accused of having improperly influenced the awarding of various transversal contracts during their tenure at the department. Due to the serious nature of the testimony presented at the Madlanga Commission, authorities have decided to scrutinize all transversal contracts concluded during the period in question.
In its statement, the National Treasury emphasized that the findings of the external forensic team will be made public.
“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,” the Treasury stated. “Findings of this investigation will be made public in the interest of public trust and good governance.”
In addition to launching its independent probe, the National Treasury confirmed it has already begun processing requests for documentation from the Madlanga Commission, pledging its full and ongoing support to the commission’s work.
Understanding Transversal Contracts
Transversal contracts are a critical component of South Africa’s public procurement framework, designed to streamline government spending. Governed by Treasury Regulation 16A6.5, these are centralized procurement arrangements facilitated for goods and services required by multiple public sector entities simultaneously.
Within the National Treasury, these multi-billion-rand arrangements are managed by the Office of the Chief Procurement Officer (OCPO). The OCPO is tasked with handling the overall sourcing strategy, the bidding process, and the final contract awards.
However, the process is not entirely centralized. The Treasury clarified that line departments heavily participate in the procurement workflow. For instance, if a contract involves the South African Police Service (SAPS), SAPS officials actively sit on the Bid Specification, Bid Evaluation, and Bid Adjudication Committees to provide sector-specific expertise and confirm demand requirements.
While the contract framework is established centrally, individual public sector entities carry out transactions directly with the appointed suppliers, combining centralized oversight with decentralized purchasing.
Commitment to Accountability
The integrity of the transversal contracting system is vital to preventing the mismanagement of public funds, making these allegations particularly sensitive for the nation’s financial custodian.
The National Treasury re-affirmed its commitment to transparency, accountability, and integrity in public procurement, promising that robust consequence management will be applied should any wrongdoing be uncovered.
However, to safeguard the independence and integrity of the ongoing investigation, the department announced that it will maintain a strict media silence on the specifics of the case for the duration of the probe.
“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,” the statement concluded.
