Rorisang Kgosana
Premium Journalist
3 minute read
28 Oct 2020
3:26 pm

Budget wrap: Mboweni pumps money into state capture commission to combat corruption

Rorisang Kgosana

He dismissed claims that the R500 billion relief package was entirely lost to corruption, stating it was mostly used to 'cushion the impact' of the pandemic while other aspects will continue to be rolled out over the medium term.

Finance Minister Tito Mboweni. Picture: GCIS

The National Treasury has taken steps to combat corruption in the country as over R60 million has been allocated to the state capture commission of inquiry while law enforcement agencies are probing R3.5 billion worth of tenders awarded to companies that are not tax compliant.

Tabling the medium-term budget policy statement (MTBPS) before Parliament on Wednesday afternoon, Finance Minister Tito Mboweni said Treasury withdrew emergency procurement processes following “exploitive acts” of corruption when it came to combating the Covid-19 pandemic.

He dismissed claims that the R500 billion relief package was entirely lost to corruption, stating it was mostly used to “cushion the impact” of the pandemic while other aspects will continue to be rolled out over the medium term.

While details and names of all companies awarded Covid-19 related contracts were made public, the South African Revenue Services were however probing successful companies which were not tax-compliant.

“The South African Revenue Services is working with other law enforcement agencies to evaluate R3.5 billion worth of tenders awarded to entities not registered for VAT.”

“The Covid-19 pandemic has given rise to shameful and exploitative acts of corruption. This has overshadowed our collective achievements in saving lives and supporting livelihoods. It is not true that the R500 billion relief package has been entirely lost to corruption,” said Mboweni.

In addition, R63 million had been allocated to the State Capture Commission of Inquiry to finalise investigations and compile a report by the Department of Justice and Constitutional Development, Mboweni said.

“The final part of our duties as captains through the storm is to strengthen the ship… We must continue to defeat the corruption and plug the loopholes,” said Mboweni.

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