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Zombie business people cash in on Government tenders

Folks looking to extort the system setup companies using the identities of dead people, and then use these companies to tender for services advertised by the government

First, there were the infamous ghost teachers who received salaries but were never in the classroom.  Now there is dead folk happily picking up lucrative Government tenders.

A report by the Sunday Times has revealed that there are around 12 000 people on the South African government’s books that aren’t even alive. National Treasury’s register of companies shows that these folks are doing business with the state, but that they don’t even have a heartbeat.

National Treasury’s procurement office started a ‘ government clean up’ a few years ago as a means of putting an end to irregular expenditure and wasteful spending and the 12 000 ‘zombie entrepreneurs’ were discovered thanks to this task team.
Additionally, it’s been discovered that 14 000 state employees are listed as directors of companies that aren’t even legally allowed to do business with the state but have been given government tenders.

According to the newspaper, fraud and other dodgy dealings eat into government’s R600 billion annual goods and services budget to the extent of around 40%, which is why the task team is so important.

Folks looking to extort the system setup companies using the identities of dead people, and then use these companies to tender for services advertised by the government. The same people who’ve set up the fake companies then bid for tenders, against themselves, which makes their real company look like the better option.

At Caxton, every story is written by humans. We use AI only to perform quality checks - never to generate the news. Happy reading!

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Terry Worley

Terry Worley has been associated with the Courier for many years and is involved in the community covering a variety of issues affecting residents. He has a passion for local politics and for the history of the area.

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