Procurement Anomalies
Threshold-Splitting Detection
Detects orders deliberately kept just below R30k or R500k quotation and tender thresholds.
Why splitting defeats competitive sourcing
Procurement thresholds determine whether a requirement needs quotations or a full competitive tender, and deliberately splitting a requirement to stay below R30 000 or R500 000 is a recognised manipulation prohibited by Treasury's SCM regulations. The AGSA tests for split transactions because they conceal the true value and avoid competition. AuditPro Core detects orders that cluster just under threshold boundaries so structuring is exposed.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Suspect Clusters
138
▲ 19
Value in Clusters
R 41.7m
this year
Near R30k Orders
612
R27k-R30k
Near R500k Orders
94
R470k-R500k
Order Count by Value Band Around R30k
Largest Suspected Split Clusters
| Vendor | Orders | Window | Total (R'000) |
|---|---|---|---|
| Vendor 0318 | 8 | 5 days | 228 |
| Vendor 0641 | 6 | 3 days | 171 |
| Vendor 0950 | 7 | 8 days | 189 |
| Vendor 1277 | 5 | 2 days | 142 |
| Vendor 1504 | 6 | 6 days | 158 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Threshold tiers
SCM prescripts set escalating requirements as value rises: petty cash, then quotations, then formal tender. Each tier exists to match procurement rigour to spend size.
Splitting and structuring
Breaking one requirement into several smaller orders keeps each below a threshold, sidestepping the quotations or tender process the combined value would demand.
Just-below clustering
Awards bunched immediately under a threshold, especially to one supplier within a short window, are a statistical signature of deliberate structuring rather than coincidence.
Aggregation test
The legal question is the true value of the underlying need. Aggregating related orders by supplier, period and category reveals whether a tender was avoided.
How AuditPro Core Bridges the Gap
- Pattern detection: AuditPro Core profiles award values against threshold lines to surface just-below clustering.
- Reconciliation: Related orders are aggregated by supplier, category and period to test the true combined value.
- Exception workflow: Suspected splits raise cases for the SCM unit to justify or correct.
- Audit-ready export: Split-risk populations export with the underlying orders for AGSA review.
Key Takeaways
- Thresholds match procurement rigour to spend size; splitting defeats that.
- Watch for awards clustering just under R30k and R500k lines.
- Aggregate related orders by supplier and period to find the true value.
- A short-window cluster to one supplier is a structuring signature.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.