Issue Date: 
Monday, October 27, 2014

Tenders and Fraudulent Certificates

By W van Rooyen

www.how2tender.com

27 October 2014

Recently the Department of Trade and Industry has embarked on Operation Khusela. The reason for this operation was to clamp down on illegal B-BBEE verification agents, who issue fraudulent broad-based black economic empowerment (B-BBEE) certificates. The operation was led by Deputy Minister of Trade and Industry Mzwandile Masina and it targeted illegal agents, who operate outside the DTI offices in Sunnyside, Pretoria.

Not only can one buy fraudulent B-BBEE certificates of the street, but you can also buy fraudulent Tax Clearance Certificates as well as fraudulent Company Registration Certificates.

Now there can be multiple reasons why someone would try and obtain fraudulent Tax Clearance certificates, but why someone would want to get a fraudulent B-BBEE certificate, I really don’t know. The fact is that the business people that mostly fall prey to these fraudsters are SMME’s whose turnover is below R5 million per year. These business owners can easily obtain a valid EME B-BBEE certificate for as little as R350-00. Even if your business is large enough to be considered a QSE (turnover above R5 million), then still, a B-BBEE Certificate is not the most expensive thing to obtain.

I have heard of a business owner who owns a business in the property and mining sector, who was a victim to Fraudulent B-BBEE agents and as a result of the fraudulent certificate, he unknowingly acquired from these fraudsters, his business lost a tender amounting to R40 million.

Another area where fraudsters operate is the selling of false Company Registration Certificates. If you are a start-up business owner and you want to register a company you can shop around to get the best price from Registered Accountants and/or Auditors. The going rate these days is about R1800-00 per registration. But if this is too rich for you, you can go to your local Provincial Department of Economic Development and register a company through them. This is a very affordable route to take and normally you as business owner only have to pay the normal CIPC fees which are not more than R300-00. So it is not necessary to obtain fraudulent Company Registration Certificates. The only constraint, when registering a company, is that of time. So ensure that you have enough time to register your company to make the deadline of a tender.

A Private Company or Organ of State that is meticulous in their tender process will test the authenticity of your Tax Clearance, B-BBEE and Company Registration Certificates. If they find that there is a problem with just one of these certificates your tender response will be disqualified. Nine out of ten times you would not even be aware of the fact that your tender response has been disqualified.

It is clear that it is easy to obtain the necessary certificates to respond to tenders. It is also clear that these certificates shouldn’t have to bankrupt you as business owner.

Please visit our website at www.how2tender.com for more on these as well as other interesting topics. You will also find our Tender Manual there - the Tender Manual guides you through the whole process of responding to a Tender or a Request for Proposal.

Until next time.

Title Closing Date Tender No.
Provision of existing 196m2 leased office accommodation for The Department of Culture Arts and Traditional Affairs at Naledi service point in Vryburg for a period of 36 months. 2019-01-17 11:00 PWR 133/18
Supply & delivery of plinths for minisub and ringmain unit 2018-11-29 10:00 DIE0014914
Supply & delivery of electrical equipment 2018-11-27 12:00 SCM04-2011-18
Supply & delivery of galvanized poles and pole caps 2018-11-29 10:00 DIC0025766 (READVERTISE)
Provision of existing 196m2 leased office accommodation for The Department of Culture Arts and traditional affairs at Kagisano Molopo service point in Ganyesa for a period of 36 months. 2019-01-17 11:00 PWR 124/18
Supply & delivery of blue jot – it down notebook – 75 with full colour branding. 2018-11-29 10:00 DCG0011888
Supply & delivery of seedling & trees 2018-11-27 12:00 SCM03-2011-18
Cleaning of Reservoirs and Towers 2019-01-22 10:30 JWOPS 015/17RT
Appoint a service provider for the construction of ten (10) timber wendy house units in various areas. 2018-11-27 14:00 1056812
Cleaning and Maintenance of Outfall Sewers. 2019-01-22 10:30 JW OPS 043/18
Printed Books 2018-11-27 14:00 PNQ2 PRINTED BOOKS
Construction of multipurpose community centre building - phase 2B white location, Knysna. 2019-01-23 12:00 T 31/2018/19
Supply and Delivery of One Automated Mineralogical Scanning Electron Microscope based mineral/phase analyser (QEMSCAN) including Training. 2019-01-24 10:00 ERIC0340
Consulting Services- Digital Archivist & Librarian within the Directorate of Information & Communication 2018-12-07 15:00 Re advert- AUC/DIC/IC/327
Supply of hygiene products and services. 2019-01-24 12:00 33/2018
Provision of basic sanitation services in informal settlements with The City of Johannesburg on an as and when required basis. 2019-01-25 10:30 JW 13855
The supply and delivery of water meters 2018-11-28 12:00 61954
Panel to provide travel management services. 2019-01-25 12:00 36/2018
Supply and installation of security parameter fencing at Matopie High Site, Franschhoek. 2018-11-28 11:00 FQ/SM: 75/19
Supply, delivery and installation of high security cage at miniature substation 2018-12-03 11:00 FQ/SM: 73/19

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Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

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