Legal / Contract

20% of public procurement budget lost to corruption

Some R30-billion of South Africa’s R150-billion public procurement budget is lost to corruption, estimates TFAC and its alliance partner Sentigol, supplier of the Tendersure system. Much of the loss is through rip-offs, overpricing, tender rigging and manipulation, reports TFAC. Legislation to challenge corruption has a limited impact, however, deploying effective Information Technology packages to overhaul […]

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BEE – a system that could end ‘lazy’ purchasing

Great intelligence is required to create possibilities to optimise supply chains within the rules of black economic empowerment (BEE), Gerd Kerkhoff, CEO of purchasing consultancy Kerkhoff Consulting, told SmartProcurement. Kerkhoff Consulting is a recognised leader in purchasing optimisation with over 500 clients worldwide. “If you don’t break-open rules that govern or restrict purchasing activity they

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Playing with giants – India

India’s influence in Africa is growing. Elaine Porteous, SmartProcurement Associate Editor and Procurement advisor discusses how to make the most of this partnership. Indian companies are increasingly investing in Africa. “India will invest US$1,5-trillion in the next five years,” declared Anand Sharma, India’s Minister of Commerce and Industry, at a recent conference in Nigeria on

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Corruption in government procurement, how are they doing it?

It has been estimated unofficially that R30-billion per year, 20% of the overall government procurement budget of R150-billion, is being lost or is disappearing into a black hole of corruption. Much of the loss is through rip-offs, overpricing and the failure of contractors to deliver on their promises, says Carol Paton, of the Financial Mail,

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Removing complexity from government Tenders

Print media are awash with articles about the many factors that can and do go wrong with the tenders process, or the pending changes to the process itself. The amendments proposed by the Department of Trade and Industry (DTI) to the Preferential Procurement Policy Framework Act (PPPFA), a pillar of public sector procurement in South

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Achieving procurement objectives through effective contract management

Contract management offers improved supplier performance, however, is it also a tool to censure and punish poor supplier performance? The fifth article in SmartProcurement’s World-Class Procurement Practice series will discuss the need for Procurement professionals to understand how properly managed contracts can lead to excellent supplier performance. A well developed and managed supply contract is

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A transparent and fair tender process for Government mooted

“The tripartite alliance in Gauteng has proposed a complete overhaul of government procurement policy to ensure transparency, prevent corruption and speed up service delivery,” Sibongakonke Shoba wrote in the Business Day of April 1, 2010. Central to that thought is their simultaneous call for the tender process – the chief mechanism by which the State

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Is your supply chain ready for AARTO?

Whether or not the Administrative Adjudication of Road Traffic Offences (AARTO) has yet been implemented, your supply chain may face logistics and delivery difficulties if you have not put measures in place to cope with possible driver disqualifications under the new administrative framework. SmartProcurement has some suggestions. AARTO will work as follows: each traffic violation

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Comment: Draft preferential procurement regulations’ effect on currently exempt SOEs

Ashney Chetty, Manager of Policy and Governance at Transnet, and her group offer the following commentary on the draft Preferential Procurement Regulations (“the Regulations”) to SmartProcurement readers. It will focus on the impact and effects of the Regulations upon SOEs that are currently exempted from the PPPFA. “It is commendable that National Treasury has decided

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Negotiating for the ‘best fit’

Several questions arise when it comes to negotiating. As one goes into a negotiation, there is one striking question that one needs to ask oneself: “Is the price the only subject for negotiation?” The fourth article in SmartProcurement’s World-Class Procurement Practice series will discuss the need for Procurement professionals to not only limit their negotiations

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