Sourcing Strategy

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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Volume leveraging benefits – Where’s the evidence?

Public sector Procurement organisations of many of today’s recession-hit territories are responding to demands for savings in various ways, including increasingly desperate attempts (in many cases) to deliver Procurement savings by pressurising suppliers to deliver lower prices, on the largest possible scale. Over the last few years public and pri vate sector volume leveraging strategies

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IPAP 2: Departmental dispute jeopardises plans to overhaul public procurement

Government’s plans to bolster the domestic economy through procurement reform as set out in the Industrial Policy Action Plan (IPAP2) are in danger because the Department of Trade and Industry (DTI) and National Treasury reportedly disagree on the scope the proposals should have. “We are concerned that implementation remains a challenge due to an apparent

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Strategic leveraging of public procurement critical to success of industrial policy

The latest Industrial Policy Action Plan (IPAP) has slated current public procurement for “not delivering adequately on either value-for-money or key industrial objectives.” The plan calls for a reform of public procurement legislation, regulation and practices that result in “ad hoc” rather than strategic purchases. It details how the Government’s R846-billion infrastructure spend over the

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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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“Box ticking” affirmative procurement does more harm than good

Over the last 15 years or so, the Government has tried various means to spread South Africa’s wealth more equitably among its people. Good progress appears to have been made, however, there is a growing move towards a complex political box-ticking ‘compliance’ approach to affirmative procurement and associated policies which may, in the long run,

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Challenges in the permanent recruitment procurement process

At the dawning of the next decade and as the recession in South Africa begins to gradually fade away, many organizations may tentatively consider appointing more staff. The recruitment market changed from a scarcity of skills on the open market in early 2008 into a relative glut during 2009, with many people sitting tight in

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Uncovering huge savings possibilities in operational procurement

There’s never been a more important time for procurement to identify and direct their organisations to realise potential cost savings effectively, both within current spending and also when assessing new ventures. One area of focus is the purchase to pay (PTP) arena. A key indicator of a world-class procurement organisation is the use of a

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