Letter: Investigate the tenders

Vijay Surujpal of Phoenix writes:

The Competition Board charged Dischem R1.2 million for inflating the prices of masks. Economics is about supply and demand but all things being equal, exorbitant prices cannot be used to financially exploit people.

The prices were increased in response to the demand however it was not astronomical compared to the prices charged and paid for by government in respect of personal protection equipment (PPE).

Is the Competition Commission Board going to investigate the prices of, for example, the sanitizers and thermometers invoiced out to the Department of Education for the use in schools?

A simple example is the price of the infrared thermometers charged to government on the tender process for R2527.20. A good quality thermometer can be sourced for R800 according to adverts from reputable distributors.

Let’s look at another example of the 5 litre hand sanitiser which was invoiced to government at R933. This can be sourced for under R300.

I think this is what needs to be investigated by the Competition Commission. These are astronomical prices which drains the fiscus, further exacerbating already pre-existing inequalities.

Businesses and government should be subject to the same rules. Let us not forget that businesses create employment and add to the fiscus through a variety of taxes.

Money allocated for the inflated prices paid by government comes from the people and businesses. Fundamentally market related prices need to be paid for goods and services offered to government.

To streamline the process, treasury needs to create a database of suppliers from whom they can source goods. There is no need for an intermediary in the supply chain where over pricing and mismanagement of finances take place.

Looting and squandering of the fiscus is soon going to reach its peak, but instead of levelling off like the virus, it’s going to push the country over the precipice where it may never find its way back again. That’s the stark reality we face.

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