Public-sector advisory series

South African public-sector procurement and governance brief

A weekly, evidence-led briefing on PFMA-aligned supply chain management, National Treasury and OCPO instruments, AGSA findings, material irregularities, and consequential DFI or SOE governance practice.

Updated 31 August 2026 · New editions published weekly

Briefing archive

Each edition distinguishes publication dates from effective or event dates, explains the advisory consequence, links directly to the underlying source, and challenges claims that go beyond the available evidence.

Development 1

Treasury's restricted-supplier register has materially changed

Publication date: Report generated 28 August 2026
Effective or event date: Restrictions commenced 28 August 2026

What changed

The current National Treasury report replaced the 27 July version and recorded four individuals restricted on Eskom's authority for fraud and corruption from 28 August 2026 to 28 October 2027: Jakobus Hendrik Boshoff, Tony Jose Carreira, Phinias Tsholwane Kgori and Thandi Emelda Veronica Mohale.

Why it matters

Bidder screening cannot be limited to the bidding company. Current SBD controls contemplate disqualification where the bidder or relevant directors, trustees, shareholders, members, partners or controlling persons are listed.

Recommended action

Repeat Treasury and CSD screening immediately before recommendation and contract signature. Screen consortium members, subcontractors and relevant controlling persons, and retain time-stamped evidence in the adjudication file.

Key risk

A stale downloaded report can produce false clearance and an unlawful award.

Challenge to the claim

Eskom's earlier figure of 101 restricted suppliers did not mean that all 101 were nationally restricted. Only persons and entities recorded in Treasury's current register should be treated as nationally listed.

National Treasury restricted-supplier report

Development 2

Eskom closes its diesel review but confirms significant governance failures

Publication date: Eskom final update published 27 August 2026
Effective or event date: Transactions examined included 2019 contracts and payments under the 2025 contracts; verification cut-off 30 June 2026

What changed

Eskom reported no evidence that diesel paid for was missing and did not sustain allegations that Tender MWP2197GX was compromised. It nevertheless confirmed about R3 billion in payments outside contractual terms, emergency approvals inconsistent with the Delegation of Authority, about R38 billion of irregular expenditure identified under separate 2019 fuel contracts, and a gap in full-scope probity reviews for procurements exceeding R500 million between October 2022 and late 2025.

Why it matters

Delivery of the commodity and absence of proven loss do not cure approval, contractual or irregular-expenditure failures. Operational urgency is not a substitute for lawful emergency authority and prompt ratification.

Recommended action

For emergency and continuity procurement, require a formal record covering delegated authority, payment terms, advance-payment security, inventory ownership and custody, ratification deadlines, independent probity review and post-event reconciliation.

Key risk

A board may accept “nothing was missing” as closure while material irregular-expenditure, delegation and contract-management exposure remains unresolved.

Challenge to the claim

Eskom published its conclusions, not the underlying independent reports. The scope, evidence and qualifications supporting the “no compromised award” conclusion cannot yet be independently tested.

Eskom final diesel-investigation update

Development 3

Professional consultants face direct recovery exposure for unlawful procurement

Publication date: SIU statement published 27 August 2026
Effective or event date: Special Tribunal judgment dated 26 August 2026; underlying appointment dated 27 August 2009

What changed

The Special Tribunal ordered former Nkandla principal agent and architect Minenhle Makhanya to pay National Treasury R147,269,444.06, declared his appointment contract invalid and awarded legal costs against him. Reported findings included appointment without competitive procurement or lawful emergency justification, unauthorised scope expansion, missing written variation approvals, above-market certification and payments for work not performed or inadequately accounted for.

Why it matters

Architects, engineers, quantity surveyors, project managers and transaction advisers are not insulated by the accounting officer's ultimate PFMA responsibility. Certification and principal-agent authority can create direct personal, professional and contractual exposure.

Recommended action

Appointment letters and professional-services contracts should define authority limits, variation controls, market-price verification, payment-certification evidence and escalation obligations. High-value variations should receive independent technical and commercial review.

Key risk

A consultant can become the effective control point for unlawful scope growth and unsupported payment certification.

Challenge to the claim

This was a fact-specific Tribunal order, not a blanket rule imposing personal liability on every consultant involved in irregular procurement. An order is also not cash recovery; enforcement and any appeal remain relevant.

SIU and Government statement

Development 4

SIU investigation opens into a R150.47 million North West road contract

Publication date: Proclamation published 28 August 2026
Effective or event date: Operative 28 August 2026; investigation period begins 9 March 2021

What changed

Proclamation 340 of 2026 authorised the SIU to investigate Bid PWR 89/13 for the special maintenance of Road P152/1 between Setlagole and Delareyville. The R150,466,494.68 Phase II contract covered 28 kilometres and the mandate includes procurement, contracting, payments, possible improper benefits and compliance with applicable prescripts.

Why it matters

Infrastructure investigations increasingly test the complete commercial chain, not merely whether a tender was advertised.

Recommended action

Preserve and reconcile approved scope, engineer's estimate, bid evaluations, design changes, site instructions, measurement books, progress certificates, variation approvals, payment records and evidence of completed quantities.

Key risk

Scope and payment leakage may remain hidden where payment certificates are not reconciled to measured work and approved variations.

Challenge to the claim

A proclamation establishes an investigative mandate, not guilt or irregular expenditure.

SIU announcement on Proclamation 340

Framework position

PFMA SCM Circular 05 becomes effective on 1 September 2026. CRAM remains encouraged rather than compulsory, with the first voluntary assessment encouraged by 1 October 2026.

The Public Procurement Act remains to be proclaimed. Existing PFMA, Treasury Regulation 16A, applicable instructions, the PPPFA and Preferential Procurement Regulations 2022 remain controlling.

OCPO PFMA SCM instruction register OCPO PFMA SCM circular register Public Procurement Act 28 of 2024 PFMA SCM Circular 05 and CRAM

Prioritised advisory watchlist

CRAM activation from 1 September: accountable owner, evidence standards, independent challenge and remediation tracking.
Further restricted-supplier changes, including Eskom referrals and linked individuals.
Eskom diesel follow-through: supplier review, Hawks referrals, consequence management and release of underlying reports.
Public Procurement Act commencement, final regulations and transitional instructions.
Infrastructure contract controls arising from Proclamation 340.
Revised SBD 4 readiness before 1 November 2026.

This publication is general information for informed readers. It is not legal, tax, audit or transaction advice on a particular set of facts. Source status and operative instruments should be checked at the date of reliance.

Nkhumeleni Musekwa

Founding Principal, Black Heath Advisory

Practitioner-level command of SARS dispute procedure, IFRS for SMEs, and the Tax Court Rules.

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