Cosatu proposes interventions to tackle Covid-19 procurement graft

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In light of irregular spending on Covid-19 procurement, Cosatu recommends that politically connected people be barred from doing business with the state.

Trade union federation Cosatu estimates that between R1-billion and R2-billion has been irregularly spent to procure personal protective equipment since the start of the pandemic.

In one instance, local factories that comply with labour laws and other regulations could produce cloth masks worth R10 to R16, depending on quality. The middlemen procures illegally or internationally sourced cloth masks, which are often cheaper to produce. The middlemen would then charge the government R20 to R25 for the masks, leaving the local factories scrambling for revenue.

As part of its recommendations submitted to the committee, Cosatu said all politically exposed people should be banned from doing business with the government.

 

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