The Tshwane Metro is paying far more than market-related prices for goods, despite Tshwane Mayor Kgosientso Ramokgopa’s promise to give residents value for money.
According to a report in Beeld, certain suppliers are given preference, even if they do not provide the lowest prices. The newspaper quoted an anonymous official within the purchasing department as saying: “The price at which stock is purchased is just a side issue. The bigger issue is with whom the municipality does business.”
Beeld reported that the metro’s internal computer system revealed that the metro was paying inflated prices for basic stock such as pencils, spades, and pipes. For an order of 1200 Staedtler Tradition HB pencils, the metro paid R10 per pencil, while a pack of three of the same pencils can be bought at Pick n Pay for R14.99.
For steel-handled garden spades that usually cost between R130 and R140 at the hardware store, the metro paid R250, and for 40mm galvanised pipes that can be bought for R439, the metro paid R4320, Beeld reported.
Tshwane Metro spokesperson Blessing Manale told the newspaper that while purchasing departments usually factored in price, reliable supply chains and quality also influenced purchasing decisions.