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SABC awarded contracts to non-qualifying bidders - AG

The Auditor-General on Tuesday listed a number of concerns around the South African Broadcasting Corporations (SABC)’s annual financial statements, from irregular expenditure to poor consequence management and contravention of procurement regulations.

FILE: The SABC headquarters in Auckland Park. Picture: SABC

CAPE TOWN - The Auditor-General has on Tuesday listed a number of concerns around the South African Broadcasting Corporations (SABC)’s annual financial statements, from irregular expenditure to poor consequence management and contravention of procurement regulations.

The findings were contained in his report on the SABC’s financial statements for 2018/2019 submitted to Parliament this week.

Last month, the SABC told Parliament it was technically insolvent and was struggling to honour payments to service providers and contractual obligations.

The organisation said certain suppliers who had won bids at the SABC indicated an unwillingness to take up the contracts due to the dire state of the broadcaster's finances.

An Auditor-General report has now found some of the services were not acquired through a procurement process which was fair and equitable as required by law.

It stated that some of the contracts were awarded to bidders who did not meet the pre-qualification criteria in contravention of procurement regulations.

On irregular expenditure, the Auditor-General was unable to determine whether any adjustments were necessary to the irregular expenditure disclosure which stood at R5 billion.