For the first nine months of the 2023/24 financial year, the food banks were out of stock because the department had experienced delays in its tender process to appoint supplier companies.
Thousands of food parcels meant for low-income households are gathering dust in Gauteng’s food banks, due to payment delays by the Gauteng Department of Social Development.
Instead, the department decided to use emergency regulations to appoint 15 suppliers of food parcels in February 2024, spending a total of R22 million., including in emergency situations. The department told its bid adjudication committee that “procurement by other means” was necessitated by the high rates of food insecurity in the province.
But the food banks were only funded until the end of March 2024, when the financial year ended. So when the food banks received thousands of food parcels throughout April, they did not have funds to distribute them to beneficiaries. Several of the companies appointed to provide food parcels were also contracted to supply dignity packs, according to documents seen by GroundUp, meaning that the companies benefitted more than once from the department’s deviations from tender processes.
LTC Holding, a logistics company involved in the supply of food parcels for the Festive Season programme, was also one of the companies selected by the department in February to supply food parcels to the food banks. LTC Holding did not respond to our questions.
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