FS Social Development raises eyebrows over questionable R 500k laptop splurge

The Free State Department of Social Development is attracting some fierce criticism for splurging R 500 000 on a mere 20 laptops in 2020. The amount was deemed exorbitant during an audit committee held virtually in December 2020 and attracted attention in light of the globe battling a life-threatening pandemic and government departments needing to curb expenditure as a result. Speaking of Covid-19 budgetary constraints, it is revealed in the minutes for the aforementioned virtual audit committee meeting that the laptops were coincidentally allocated to officials working remotely at the time.

At R 500 000 for 20 laptops, this boils down to between R 18 000 and R 25 000 per laptop. In previous years, the Social Development Department procured laptops ranging between R 7000 and R 13 000 with a three-warranty under its RFB 2005/2015 contract with the State Information Technology Agency (SITA). This then begs the question, what changed? The Step Up News team posed this very question to the department to find out.

In their response to media queries, the Free State Social Development Department has blamed the exorbitant prices squarely on the very same contract, by saying the controversial laptops were procured in line with the now defunct RF 2005/2015 contract and maintain that all supply chain regulations and guidelines were adhered to, despite assertions implying otherwise.

Furthermore, the department says they have always stuck to specifications received; used market related prices in sourcing computer equipment for employees; and always invited three bidders during the procurement process.

The department has in their response included a spreadsheet of bids for 16, 20 and 35 laptops in June, October and November 2020 respectively. It is indicated that three bidders were indeed requested to quote on all three occasions.

Interestingly, the department’s contract with SITA was concluded in 2017 and a new agreement came into effect thereafter. At present the “this contract has expired and is running on a month-to-month basis whilst SITA is working on a replacement tender named RFB 740”.

Now the minutes of the audit committee meeting in December 2020 indicates that the department has been requested in future to procure computers/laptops for a lesser amount to which department officials explained that the reason behind the exorbitant price range, was due to the three-year warranty and not the traditional two-year warranty.

A month after the virtual meeting – 29 Jan 2021 to be specific – the provincial social development department procured an additional 46 laptops for R19 000 each, marking a continuation of the splurge.

The department has also been requested to engage the Central University of Technology (CUT) headquartered in Bloemfontein to find out if the institution can assist with computer training in a form of a memorandum of understanding (MOU) to help curb spending on expensive service providers.

It is unknown at this stage, whether significant steps have been made to bring this MOU to life, or if it remains a suggestion/idea.

by Bloem Correspondent