National Treasury Investigates Transversal Contract Procurement Following Madlanga Commission Testimony

Posted 08 July 2026 Written by Acts Online
Category Regulatory

Brought to you by SAnews: National Treasury has appointed external forensic investigators to probe the procurement and award of transversal contracts following allegations of improper influence by a former employee made at the Madlanga Commission of Inquiry.

In terms of the Public Finance Management Act, No. 1 of 1999 (PFMA) and its associated Treasury Regulations, the Office of the Chief Procurement Officer (OCPO) is tasked with managing the sourcing strategy, bid process, and contract awards for transversal contracts. These procurement arrangements facilitate the acquisition of goods and services required by multiple public sector entities, combining centralised contracting with decentralised purchasing.

The forensic investigation will test the veracity of allegations that a former National Treasury official improperly influenced the awarding of various transversal contracts during their tenure. Additionally, the probe will determine what regulatory or administrative measures are required to strengthen the procurement and award processes within the transversal contracting system. National Treasury has confirmed it is processing the Commission’s documentation requests and will make the final findings public.

The Transversal Contracting Framework

Under the PFMA framework, transversal procurement operates through a collaborative structure:

  • Centralised facilitation: The OCPO manages the overarching sourcing strategy, bid evaluation, and final contract award.
  • Line department participation: Participating state organs (such as the South African Police Service) participate directly in the Bid Specification, Bid Evaluation, and Bid Adjudication Committees to provide sector-specific expertise and confirm demand requirements.
  • Decentralised purchasing: Once a transversal contract is concluded, individual public sector entities transact and conduct procurement transactions directly with the appointed suppliers.

What this means for you, your business, or your clients

  • For yourself: No direct individual compliance obligations; however, professional advisors should monitor the outcomes of the forensic probe for upcoming amendments to Treasury’s transversal contracting guidelines.
  • For your business: Advisory firms and corporate entities bidding for or participating in state transversal contracts must ensure strict compliance with the PFMA and Treasury Regulations, as procurement processes face heightened auditing and scrutiny.
  • For your clients: Public sector suppliers and contractors operating under transversal contracts should review their bidding documentation, award histories, and compliance files to ensure alignment with PFMA requirements in anticipation of stricter oversight.

Originally published at https://www.sanews.gov.za/south-africa/treasury-launches-probe-madlanga-commission-allegations

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