GUIDE TO THE PREVENTION AND COMBATING OF CORRUPT ACTIVITIES ACT
No. 12 of 2004

Tender Defaulters

We have already seen that there is a lot of room for corruption when government tenders for goods or services. To address this, the Act requires the Minister of Finance to create a Register of Tender Defaulters.

This Register is kept by the National Treasury. Whenever a person or business is convicted by a court of law of crimes involving contracts or tenders, their names and details, including the names of Directors, are recorded in this Register (together with details of the crime). This creates an additional 'penalty' for these people or businesses:

❉ Existing government contracts or tenders that they have can be cancelled immediately and they might have to pay any costs that result from this.
❉ Their names remain on the Register for between 5 and 10 years. While their names are on the Register, they are not entitled to any new contracts or tenders.

It won't help anyone convicted of these crimes to simply change the name of their business or to start a new business to try and get around this. Instead, the details of any new businesses that these people start must also be entered on the Register.

Lastly, the Act requires a person or business convicted of these crimes to say this in any future applications for contracts or tenders. If they don't, they will be guilty of another crime and can be fined or imprisoned.