PURCHASE OF CARS FOR POLITICAL OFFICE BEARERS

Issued by the Minister of Transport:

In response to numerous inquiries regarding Tender RT 648 KV (the supply of vehicles to political office bearers), the Minister of Transport Abdulah Omar said the question of vehicles for political office bearers has been under review for the past year because:

• The current cost to Government is R25,3 million per year which includes the fuel, maintenance, repair costs and capital costs depreciated at 20% per annum. In terms of the estimates in the tender specifications the expected cost of the future provision of this service would be approximately R10,4 million per annum as the government fleet would be streamlined from the current 552 to about 200 vehicles. It is therefore anticipated a saving of R14,9 million per annum for Government.
• The system where the Government Garage controlled all vehicles lent itself to corruption and fraud as cars disappeared without a trace and were misused as adequate controls are difficult to enforce.

The reason for two cars is that Ministers spend a great deal of time in both Pretoria and Cape Town and work in both cities most weeks of the year. The previous sessional system is not in operation as Ministers dedicate a portion of every week to work with their departments in Pretoria. The hiring of vehicles to cover these costs would not have been cost effective.

The tender for the purchase of the vehicles was called for on 7 May 1999 in an advertisement in the Government Tender Bulletin. The tender closed on 28 May 1999. The contract is for a period of two years as from 15 June 1999 to 30 June 2001.

The mandate was agreed on by the State Tender Board and implemented by Cabinet to allow national Ministers and provincial Premiers as well as national Deputy Ministers and provincial MECs to acquire vehicles which fall within the specifications and price brackets as set out in the tender specifications.

The vehicles currently utilised by the Ministers will be transferred from the Provincial Administrations to the Departments involved where applicable and the relevant ministry will make use of the vehicle until it has exhausted its life kilometers of 150 000. The minimum specifications that are applicable to both parts of the tender are as follows (Standard Features):

• Inclusive of maintenance / motor plans for 150 000 kilometers or five (5) years whichever comes first. The maintenance / motor plans are to be fully inclusive with the exception of windscreens, damage through abuse and accident damage as specified by the applicable motor manufacturer's guide. The tenderer must however give a complete breakdown of his company's motor plan.
• Power steering; Air conditioner; Radio, tape and CD shuttle; ABS braking systems; Anti skid control (ASC); Air bags in the front for both driver and passenger; Central locking; Alarm systems and Leather upholstery.

Specifications that are applicable to Ministers and Premiers are:-

• Individual prices of vehicles inclusive of the maintenance /motor plans and VAT to not exceed R280 000; and
• Engine capacity equal to, or exceeding 2400cc

Specifications that are applicable to Deputy Ministers of National Government and Ministers of Provincial Governments (MECs) are:-

• Individual prices of vehicles inclusive of the maintenance /motor plans and VAT to not exceed R230 000; and
• Engine capacity equal to, or exceeding 2400cc.

Issued by Didi Moyle: PA and Media Liaison Officer to the Minister of Transport

27 July 1999