Cleaning up SA's R500bn tender machine

| 0 Comments

 

KennethBrown.jpgPolicing South Africa's R500-billion supply chain management system was an enormous task involving more than 20 000 staff and 220 000 suppliers, Treasury chief procurement officer Kenneth Brown said.

The supply chain management system, in which tenders are often rigged by officials doing business with the state, lies at the heart of huge corruption in the country. The Treasury established the national procurement office three years ago in an attempt to get to grips with the problem and modernise the system.

Addressing an Institute for Security Studies seminar on state procurement, Brown said the supply chain system was huge as well as "archaic", putting his office in the position of having to do a trade-off between the transparency required by the Constitution and making the system more efficient. 

It was not well understood how large the system was, with about 1,050 "entities" across all three levels of government undertaking procurement to the value of R500bn each year. About R200bn of this amount was procured by the nine provinces. There were about 20,000 practitioners and 220,000 suppliers, he said.

Brown said the internet-based e-tender portal had become the main tool of procurement intelligence and from July all municipalities would be required to advertise all tenders on the portal. When tenders are finalised, winners of tenders and all competing bidders will be published on the portal.

The auditor-general had raised a red flag over the number of procurements that did not go to tender in what were known as deviations, he said. These amounted to R98bn a year in procurement, or 40% of procurement. Procurement entities were required to report deviations but these generally came after the fact "once the damage has been done".

"Now procurement entities will have to apply for permission before they deviate from tender procedures," Brown said.

About 95% of procurement officials were hard-working and efficient and it was the remaining 5% who created havoc in the supply chain management system.

A research fellow at the International Budget Partnership, Carlene van der Westhuizen, said the biggest challenge in fighting corruption was access to information, such as who the bidders were in tenders and what their bids were. She welcomed the e-tender portal as a great initiative that would go some way to providing better access to information.

Karabo Rajuili from the Amabhungane Centre for Investigative Journalism agreed, saying a major concern was the available information on procurement.

Adapted from Bday 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Operations Manager

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Our client within the FMCG industry with a ...More

Warehouse and Distribution Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
An exciting opportunity awaits for a Warehouse and ...More

Demand Planner

  • <500 000 Permanent
Get an opportunity to be part of one ...More

Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
An opportunity for a seasoned Procurement Manager, who ...More

Industrial Engineer

  • >500 000 Gauteng Industrial Engineer Permanent Procurement Consultant
An exciting opportunity that offers extensive exposure on ...More

Deputy Director: Procurement

  • >500 000 Contract Procurement Management Procurement Officer / Specialist Western Cape
Department of Economic Development and Tourism:Procurement Specialist, Ref ...More

DEMAND PLANNING MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Projects / Category Management
(Total Cost to Company R750k – R900K) excluding ...More

GLOBAL SUPPLIER PERFORMANCE MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Salary: R 1.3M –R1.5M, dependent on level of ...More

GLOBAL CATEGORY MANAGER

  • >500 000 Contract Gauteng Procurement Consultant Projects / Category Management
Total Cost to Company R1mil – R1.2mil excluding ...More

Project Manager

  • >500 000 Contract Procurement Management Projects / Category Management Western Cape
 Description:A well-known retail organization is looking for an ...More

PROCUREMENT ANALYST

  • >500 000 Analyst Gauteng Permanent Procurement Management
Description:A leading infrastructure development group with strong presence ...More

Commodity Manager: Fuels and Lubes

  • Commodities Gauteng Permanent Projects / Category Management
 Ensuring continuity of supply in line with business ...More

Senior Facilities Manager

  • >500 000 Commodities Gauteng Operations, Planning & Inventory Permanent
(Total Cost to Company R800K – R900K) Johannesburg Our ...More

ENGINEERING STANDARDS MANAGER

  • <500 000 >500 000 Gauteng Industrial Engineer Permanent Procurement Management
(Total Cost to Company R350K – R550K) JOHANNESBURGYou ...More

Supply Chain Analyst

  • <500 000 >500 000 Permanent Procurement Officer / Specialist Supply Chain Western Cape
(Total Cost to Company R350K – R550K)  SOUTHERN ...More

Security Manager

  • <500 000 >500 000 Gauteng Permanent Projects / Category Management Strategic Sourcing
(Total Cost to Company R350K – R550K) JOHANNESBURG This ...More

Demand Planner

  • <500 000 >500 000 Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R450k – R550k, dependent ...More

Procurement Specialist-Randburg

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
(Total Cost to Company R700k – R800k including ...More

Solutions Architect

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
(Total Cost to Company R1.3Mil – R1.1Mil including ...More

MANUFACTURING MANAGER - OLIFANTSFONTEIN

  • >500 000 Gauteng Permanent Projects / Category Management
(Total Cost to Company R850k – R950K including ...More