Tenderpreneurship is one of the biggest contributors to corruption and unemployment in South Africa, as it encourages businesspersons to be corrupt, outgoing Public Protector Advocate Thuli Madonsela said on Wednesday.

She outlined to delegates attending the twenty-ninth yearly Labour Law Conference, in Johannesburg, that companies that had a bottom line solely based on the acquisition of tenders, were inclined to this behaviour as they needed to ensure their futures.

“Every time these companies apply for a tender, they ensure they get something out of it,” she said, explaining that, unless the companies had another viable source of income, they were more inclined to corruption.

She highlighted that black economic empowerment was meant to support smaller companies that vied for tenders, but that this had also failed.

Further, Mandonsela pointed out that when a tender was awarded to a less competent company, it impacted on the project,  which was often not completed. It also impacted on the employees of the tenderpreneur, as they often lost their jobs, while the most competent company, that should have been awarded the tender, lost revenue.

“Unemployment [and] corruption pose a risk to democracy and peace,” she averred.