b) The procurement legislation and regulations contains requirements that contractors must fulfil before being appointed. The contractors' ability to comply with these requirements is indicative of its ability to successfully complete the allocated projects and a tax clearance certificate indicates that a contractor's tax affairs are in order or that satisfactory arrangements had been made with the South African Revenue Service to meet any outstanding obligations. In the Free State, Gauteng and North West provinces, three contracts to the value of R1,3 billion were awarded to bidders that failed to submit original tax clearance certificates from the South African Revenue Service. None of the three projects were completed by the contractors and they had to be replaced. The following serves as examples: