R13 billion Community Work Programme Contracts Deemed 'Invalid and Unlawful'

In a case that lasted over two years, the non-profit organisation, the Seriti Institute, succeeded in its bid to overturn all 11 contracts of the R13-billion Community Work Programme. The Pretoria High Court declared the procurement process unconstitutional and unlawful, setting aside the contracts. Seriti initially took the Department of Cooperative Governance and Traditional Affairs (Cogta) to court in 2018 after losing a tender to become an “implementing agent” for the employment creation and poverty mitigation initiative.

The ruling by Judge Selemang Mokose did not, however, affect the continuity of the Community Work Programme, which serves approximately 280,000 unemployed individuals, deeming it necessary for the existing contracts to carry on until their predetermined conclusion in March 2021 to avoid disruption to beneficiaries. Despite this encouraging news, the apparent unfairness in the procurement process and carelessness with public funds raised serious concerns.

Inadequate communication and questionable assessment of bidders were significant issues highlighted during the conflict. An independent assessment of shortlisted bidders identifying several problems also came to light. Despite the irregularities, Cogta continued to contest the case against Seriti.

Achieving a significant victory, Seriti managed to ensure that the government incurs the application's costs, including two counsel's fees. The court's decision sends a clear message to government institutions about procurement legislation's importance – primarily to safeguard against corruption.