Public Sector Procurement

Cabinet to align treasury procurement regulations with BEE Act.

Cabinet announced in March that it will approve the alignment of the Preferential Procurement Policy Framework Act (PPPFA) and the Broad-Based Black Economic empowerment Act (BEE Act). Public entities follow the regulations of PPPFA to procure goods and services. Alignment of these two Acts will ensure that government departments and municipalities include BEE when awarding […]

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SA public procurement – poor value for money

Taxpayers are simply not getting value for money from South Africa’s public procurement services – that’s in over 250 municipalities, 9 provincial governments and over 40 central government departments, Finance Minister Pravin Gordhan said in his budget speech last week. He said that the government is losing billions of Rands through maladministration and inefficient purchasing.

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Government’s SCM capacity building drive

In a bid to elevate the professionalism of Supply Chain Managers, Cabinet has stipulated that government will only employ qualified SCM practitioners and assist to plot their career paths within a system of excellence. To facilitate this new culture of success, the Department of National Treasury (NT) is on a path of significant capacity building,

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The contents of an ethical purchasing policy

Several SmartProcurement World 2010 speakers discussed the high levels of corruption exposed daily throughout the African continent – South Africa itself being the victim of many improper business practises within all sectors of the national economy. It was widely agreed that organisations need to reform their policy and procedure handbooks to ensure that positive steps

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What Pravin’s budget speech means for Procurement

Minister of Finance Pravin Gordhan outlined in his October budget speech some of government’s plans to amended poor procurement practices and combat fraud and corruption.Here follow the extracts from his speech as it relates to Public Sector procurement: 1) “We will be increasing the monitoring capability of government, aimed at early detection of fraud. Departments

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State Owned Enterprises – there’s hope on the horizon

More than 300 parastatal organisations, or state-owned enterprises (SOEs), will be put under the microscope in the next year. Many of them are really struggling, like the SABC, but there are some that are regarded as leading lights, like the Development Bank of South Africa, Elaine Porteous tells this month’s SmartProcurement. A presidential review commission

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Verifying suppliers’ capabilities: Managing expenditure and service delivery within local government

With all the economic pressures facing South Africa, local municipalities are becoming increasingly focused on managing procurement expenditure. This focus has resulted in some interesting findings within procurement departments. The assumption that a supplier that quotes for a product or service is competent to supply is not always accurate, Dawn Smith, a Senior Procurement Specialist

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Raising procurement’s profile – two sides of the coin

Negotiate a lower price on a contract. Add $10 000 to the bottom-line. Get Procurement represented on the board. Add $-millions to the bottom-line. Raise the profile of your profession, so that everyone can now see your lack of ethics. Priceless. While Procurement strives to raise its profile in the business world, toiling everyday to

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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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