African National Congress (ANC) Deputy Secretary General, Jessie Duarte, says although they are aware of tender problems, the system is aimed at getting the private sector to help the public sector where it cannot provide services.
The tendering system has been blamed for corruption and the collapse of some key state owned enterprises.
Recently, SABC News visited a stalled R 44 million housing project in Hospital Hill outside Johannesburg.
A private company was contracted to build 400 RDP houses in 2016 but so far only 85 houses have been built.
The remaining 315 are incomplete and will have to be demolished as they are in a state of collapse.
Residents say the project stalled due to political interference and manipulations.
Duarte says they are aware of the problems in tendering processes.
The South African Communist Party (SACP) has reiterated its call for the state to do away with the tender system saying they are seedbeds of corruption and the cause of the collapse of many key state owned enterprises.
Currently the Commission of inquiry into State Capture is investigating corruption related cases in some of the SOEs including Eskom, South African Airways and Transnet among others.
SACP First Deputy General Secretary, Solly Mapaila says they want the state to have capacity to deal with any project.
After being forced to demolish their houses to make way for new RDP houses in 2016, Hospital Hill residents in Lenasia south of Johannesburg say they are still waiting for government to deliver on its promises. They say their R 44 million housing project was stopped due to political interference and manipulation. Some of them say they regret that they agreed to have their homes demolished.