Note: This response should be read in conjunction with the response to Question no: 1398.
Breach of contract is when either of the parties did not comply with any or all the terms of conditions. Thus a notice of breach of contract is issued when the supplier defaulted on the terms and conditions. Breach of contract is a pre -requirement for the contractor to be declared as a defaulter (Non-compliance of contract) (PFMA Regulation 16A.9.2 and Treasury Guidelines – (Government Procurement – General conditions of Contract – Annexure A)
a) How are (i) service providers and (ii) suppliers who default in the services that they render to the department dealt with.
If steps as per reply to Question No: 1398 are not successful, the following action are taken:
b) What number of service providers and suppliers have defaulted in each month in the past three financial years and since 1 April 2021
The Honourable member is referred to the letter and report submitted to the Chairperson of the Portfolio Committee on Tourism on 3 February 2021 by the Minister and subsequently distributed to members of the committee.
c) What are the reasons for the default in rendering the services
d) What steps are taken to reduce the default incidences
As per reply to Question No 1398
e) What financial losses have been incurred in each month in the past three financial years and since 1 April 2021
Financial Year |
Financial losses incurred |
Since 1 April 2021 |
Information will only be audited in 2022/23 financial year. |
2020-2021 |
Information in process to be audited. |
2019-2020 |
Information can be obtained from that tabled Annual Performance Report of 2019/20 as tabled on 22 October 2020 ( ATC no 151 – 2020) |
2018-2019 |
Information can be obtained from the tabled Annual Performance Report of 2018/19 as tabled on 1 October 2019 (ATC no 72 -2019) |