Public Sector Procurement

Adopting contract management framework a lesson for government

Government entities are making progress implementing National Treasury’s (NTs) Contract Management Framework released in 2011, Paul Maddison, Managing Director at Realyst Contract Management, tells SmartProcurement. There are indications that some public sector entities are beginning to take contract management seriously, already embarking on strong initiatives to get to grips with the requirements set by Treasury. […]

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Further PPPFA updates published

National Treasury (NT) issued further guidelines on its amended Preferential Procurement Policy Framework Act (PPPFA) on December 2, just days before today’s December 7 deadline when the amendments become active. In the latest guidelines NT and the DTI have issued the list of designated industries, which must define criteria and thresholds for local production and

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Irregular state expenditure jumps 62%

Government spent R26,4-billion in 2010 in ways that contravened laws and regulations, BusinessDay reports. The national and provincial governments and their entities notched up R21-billion in irregular expenditure last year, a 62% rise over the previous year’s R13-billion, with unauthorised expenditure adding a further R3,8-billion (R8,9-billion), and fruitless and wasteful expenditure an extra R1,5-billion (R500-million).

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State-business accord sets buy-local target of 75%

Business, government and labour pledged on Monday to increase their expenditure on goods and services from South African producers to 75%. The move is a bid to boost industrialisation and create employment in the country. The New Growth Path Local Procurement Accord seeks to “lay a foundation for a localisation programme,” said Economic Development Minister

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Using the new PPPFA Regulations for successful supplier adoption

The new Preferential Procurement Policy Framework Act (PPPFA) regulations are set to go into effect on 7 December 2011. This is great news that will positively impact the lives of many in South Africa as well as the country’s overall economic outlook, Catherine Hills, Partner: Global Accounts at Ariba, tells SmartProcurement. The regulations state that

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Tighter tender rules issued in bid to combat fraud, boost transparency

The National Treasury has taken new steps to improve the transparency of government procurement and tender processes through the issuance of an ‘instruction note’ to government accounting officers, which it says is designed to “combat fraud” and “improve accountability”. The directive arises from concerns expressed by Finance Minister Pravin Gordhan in 2009 about the number

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Government Contract Management Framework a definitive step forward

The Contract Management Framework published and distributed by National Treasury is a watershed moment for Procurement practice in the public sector, Rivaj Parbhu, Head of Business Development at Realyst Contract Management, tells SmartProcurement. Parbhu says the framework signals intent within the South African government to take a proactive approach to standardise the management of state

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Fighting corruption – secure an investigative unit’s freedom

Out of 3134 public service irregularities reported to investigative units before April 2011, only 13% were investigated. Vusi Pikoli attributes this to “an absence of a clear and comprehensive strategy to fight corruption.” He offers the number of corruption-fighting units as evidence of this absence. South Africa has the Police Service (SAPS), the Hawks, the

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Interim Chief Procurement Officer appointed at troubled State Owned Enterprise

State-owned Broadband Infraco has appointed an interim Chief Procurement Officer (CPO) while the network infrastructure organisation realigns itself after an internal audit revealed serious flaws in its business practices, CEO Dr. Andrew Shaw told SmartProcurement. Ashney Chetty has been acting as CPO since April 18 and will overhaul the SOE’s procurement practices, among which is

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Public Service Commission plots history of procurement irregularities

Some 720 cases of irregular procurement practices in the public sector have been identified by the Public Service Commission (PSC). The irregular practices involved officials awarding government tenders without following policies and procedures and buyers awarding contracts to friends and family or rigging tenders in exchange for kickbacks. The PSC identified control weaknesses that it

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