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.”
Posted by Editor at 6:00 AM
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.
Posted by Editor at 5:40 AM
"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, do more harm than good, says Dr. Douglas Boateng, SmartProcurement editorial board member and CEO of niche business advisory organisation PanAvest International.
Posted by Editor at 9:45 AM
Historic culture can lead to Public Sector Procurement fraud - 5 tips for reducing fraud
The allegiances formed during South Africa’s troubled political history are still influencing the country’s supply chain processes. This was one of the issues highlighted during a panel discussion on SCM fraud prevention at SmartProcurement’s 2009 Public Sector Supply Chain Management Summit.
Posted by Editor at 10:30 AM
Public Sector SCM Summit played host to 10 HDI students
In a bid to promote experiential learning, and open up our conferences to interns / learners and trainees SmartProcurement’s Public Sector Supply Chain Management Summit and Workshop played host to members of the Logistics Graduates of South Africa, based at the Vaal Technikon (LGSA).
Posted by Editor at 9:30 AM
Possible Government tenders workshops in the rest of SA
The SmartProcurement ‘Tenders in Government’ Technical Workshop met with such a positive response that this niche P & SM online media organisation is planning to take the one-day programme country-wide, for the benefit of SCM practitioners on the procure and supply side.
Posted by Editor at 9:10 AM
Larger fiscal deficits call for stricter compliance to government tender guidelines
There is a greater need for public sector tenders to be more strictly awarded according to government’s guidelines. The outcome of tender awards influenced by government officials with stakes in corporate companies, bribery and financial mismanagement is not just that incompetent people receive a contract, but also the waste of government’s steadily shrinking pockets.Professor Justin YIfu Lin with Minister in The Presidency: National Planning Commission, Trevor Manuel.
Posted by Editor at 10:00 AM
Procurement Competency Development initiative acknowledged by IPSA
eThekwini Municipality’s initiative to uplift procurement competency has been recognized at the Institute of Purchasing and Supply South Africa’s (IPSA’s) 2009 awards, Sandile Ngcobo, Deputy Head: Supply Chain Operations at eThekwini Municipality, told SmartProcurement.
Posted by Editor at 9:50 AM
Strategic sourcing offers the public sector a guiding hand
Strategic sourcing has become best practice in procurement management and makes good business sense for meeting the State’s ongoing commitment to taxpayers, Estelle van Rooyen, Director of Compliance, Contract Management in Specialist Functions for National Treasury, told SmartProcurement.
Posted by Editor at 2:30 PM
Stopping the stealing in the Public Sector
Last week the media ran scathing reports confirming what many government procurement professionals have been telling, SmartProcurement in private:
" That so called public servants abuse public funds to enrich themselves, bypassing or undermining procurement processes to fund their pursuits. That, senior individuals, use their political connections or seniority to pose veiled threats to SCM individuals who are intimidated into retreat..."
Posted by Bernie at 10:13 AM
Peer Reviewed: The law of Government Procurement in South Africa
In SmartProcurement’s May Newsletter, we discussed the Public Procurement Law Review’s opinions on Phoebe Bolton’s new legal work ‘The Law of Government Procurement in South Africa’. This month, SmartProcurement publishes a review of the book by Mr Isac Smith, director Supply Chain Management at the Western Cape Department of Health.
Posted by Editor at 1:11 PM
Public Sector Supply Chains helping to keeping economy afloat
The IPSA/ CIPS Pan African Conference, held at Emperors Palace on 26th and 27th May, attests to the significant role that public sector supply chains are playing in ensuring the resilience of the South African economy against the worst effects of the present global downturn. In particular, the State supply chain management machine is managing many massive contracts that are keeping several sectors of the economy afloat and their balance sheets in the black.
Posted by Editor at 12:02 PM
New work provides easy access to government's procurement policies
“A must-read for anyone who is pursuing a professional career in Procurement & Supply Management!"Owing to the fragmented regime governing public procurement in South Africa, it is exceedingly difficult to form a coherent view of the legal regime of government contracting. Professor Phoebe Bolton's book, The Law of Government Procurement in South Africa, provides for the first time relatively easy access to this regime, which will undoubtedly be of significant assistance to anyone approaching this field of law, says Geo Quinot in the 'Public Procurement Law Review'.
Posted by StaffWriter at 2:58 PM
Procurement visibility needed at compulsive buyer: UK National Health Service (NHS)
In the United Kingdom (UK) Government’s search for budget balancing savings of tens of £ billions annually, as led by Prime Minister Gordon Brown, attention is increasingly directed to the more than £160 billion that the public sector reportedly spent on the procurement of goods and services from third party suppliers (half of which is spent on common consumables).
Posted by StaffWriter at 1:13 PM
Zuma tender solution will hamper service delivery. Accountability the answer
In response to ANC President Jacob Zuma’s statement that the government tendering process should return to the old tender board system, SmartProcurement and independent experts are clear that this move will hamper service delivery, negate progress made in public sector procurement and still not be a foolproof mechanism to prevent fraud. Individual accountability within the current context offers a better solution.
Posted by Editor at 1:09 PM
Can the public sector ever negotiate successful relationships?
“The public sector has significant influence on private sector contracting. Many innovative terms and contracting methods have seen their beginnings in public procurement - examples range from 'termination for convenience' through to public-private partnerships”, Gregg Barrett, Director of Cylon Technology, recently told SmartProcurement.
Posted by Editor at 11:44 AM
Call for Papers - Tendering Best Practices and Effective Implementation of the bidding process conference
How to effectively conduct Tendering and Bidding processes in line with World Class Practices in both the Public and Private Sector is the theme of the Tendering Best Practices and Effective Implementation of the Bidding Process - Conference to be held on 29-30 July 2009. SmartProcurement is calling for papers from interested (and even afflicted :)) parties ...
Posted by Editor at 6:42 AM
Procurement and SCM impact on organisations' bottom-line - A SA government perspective
In today’s environment, where globalisation is a reality, the role of purchasing and supply management has taken on an air of additional importance. “For organisations of all types (private or public sector), the challenge is to improve the quality of products and services whilst driving down costs."
Posted by Editor at 8:30 AM
The SOE Procurement Forum explained
It is common knowledge that State-Owned Enterprises (SOEs) have tremendous clout in the procurement of goods and services in South Africa. Indeed collectively they represent billions of Rands spend in South Africa as well as in Africa itself. In the international market, SOEs are also big players when it comes to the acquisition of capital goods and direct procurement.
Posted by Editor at 6:15 AM
Taming Project Procurement: Better the Devil you Know than the One you Don't...
In South Africa large amounts of money are presently being spent through the public sector, especially on commodities such as infrastructure. “Procurement for these projects is a key function, the integrity of which can mean the difference between millions saved or wasted, time commitments met or missed, and social development requirement compliance or non-compliance. Traditionally, these projects are handled inefficiently since procurement usually buys commodities based on price, therefore removing all advantage by buying too much ‘just-in-case’ and ignoring the value of the integration of activities”, Rob Stuart, a Procurement Specialist at Volition Consulting Services, told SmartProcurement.
Posted by Editor at 11:43 AM
BBBEE Compliance vs Government Procurement Practices - a Contradiction in terms?
"No government department has ever asked for a Broad Based BEE certificate, and it may be some time before they do" Wade van Rooyen of Iquad Verification Services tells SmartProcurement. . The answer to the question of why government has not asked for certificates is based on conflicting legislation which may have a serious impact on your business.
Posted by StaffWriter at 10:25 AM
Home-grown technology offers fix for government spending woes
Inadequate or ineffective financial controls have been a serious problem in many national and provincial government departments, with the Auditor General repeatedly highlighting problems of overspending, inappropriate or fruitless spending and underspending. The solution, according to Fraxion MD Stanton Jandrell, is to automate the financial management process as far as possible to enforce compliance without adding to red tape and compromising service delivery.
Posted by Bernie at 12:00 PM
Finding a cure for "BAD" contracts and outsourcing deals?
"It is a well researched fact that the majority of outsourcing deals become unsatisfactory to one of the partners involved, within the first two years of the agreement, Cecil Harris, MD of ODMS tells SmartProcurement. This dissatisfaction could range from poorly delivered services to unhappiness with the pricing. "Invariably all outsourcing deals require a degree of remediation or renegotiation at some point during their lifetime, he says.
Posted by Bernie at 3:17 PM