SA public procurement - poor value for money

| 0 Comments
Pravin Gordhan.jpgTaxpayers 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.

Fighting corruption and fraud in the country’s public sector procurement is, therefore, a high priority on the government’s agenda, he said during his address to Parliament.

"Public procurement plays a significant part in the economy and is central to government service delivery. However, citizens and taxpayers do not get full value for money, because this is an area vulnerable to waste and corruption.”

He said there are currently 53 investigations involving irregular procurement in the public sector, relating to contracts worth R3-billion. The Department of Justice has reportedly brought 65 people before the courts for these investigations and more than R250-million has been seized.

The Minister said the South African Revenue Service (SARS) is also investigating another nine cases of tender fraud, with an approximate value of R1.7-billion.

He outlined government’s plans in its fight against rampant graft:

- In future government departments will be required to establish rigorous demand management procedures, including the submission of advance tender programmes for the next financial year to the relevant treasury authority (which plays the oversight role).

- There will also be restrictions on making changes to procurement orders to bring South Africa’s procurement system in line with international standards.

- Companies bidding for tenders will be required to disclose the identity of all directors, to determine whether any of the directors are government officials are not obeying tax rules.

By the end of January 2011, SARS had identified some 13 000 vendors who had won government contracts, but owed taxes amounting to more than R1-billion. By implication, not having a clean tax slate will become an impediment to winning tenders.

Government and private sector policies and procedures for fighting fraud and corruption will once again fall under the spotlight at SmartProcurement World, which last year, “was attended by hundreds of procurement professionals...” Business Day 17/11/2010.

The 3rd Annual Public Sector Supply Chain Summit (“Very well organized, everything to the point, keep it up,” - Khanyisile Bhengu, Umgeni Water Procurement);

and the 5th SmartSourcing Conference (“the positive elements of this event were the passion and conviction of the speakers, the scope and relevancy of the topics covered,” - Thomas Smith, Mercedes-Benz South Africa Procurement);

will run concurrently at SmartProcurement World & Expo 2011 at Gallagher Convention Centre, Midrand, Gauteng from October 11-13, 2011.

Email events@smartprocurement.co.za or visit www.smartprocurementworld.com for more information.

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