Drive to buy local stalled by 'tardy' Treasury

| 0 Comments

 

LionelOctober.jpgBusiness Day - The government’s localisation drive had been delayed by a lack of Treasury approval for designations recommended by the Department of Trade and Industry, its director-general Lionel October said on Wednesday.


The government’s procurement budget is about R500-billion a year and it has set a 75% target for local procurement. One of the tools used to achieve this is to designate products or sectors from which organs of state have to procure locally.


In terms of the Preferential Procurement Policy Framework Act (PPPFA), the department can only recommend products or sectors for designation — the ultimate decision-maker is the Treasury.


October on Wednesday recommended in a briefing to Parliament’s public enterprises committee that, to bypass bureaucratic obstacles, greater use should be made of one of the act’s regulations which allows an organ of state, including state-owned companies, to specify local content as one of the conditions of its tenders.


This regulation can only be used for products or economic sectors not designated for local procurement and must comply with Treasury and department directives.


Department of Public Enterprises director-general Mogokare Seleke said use of the regulation need not contravene the constitutional requirements for open and fair tender processes.


Foreign companies could tender if they complied with local content requirements.


October said Treasury approval for using the regulation would still be required. He said that Treasury had taken about a year to agree to the designation of the local shipbuilding industry.


The department was waiting for Treasury approval for the designation of building and construction materials, yellow metals, two-way radios, solar PV components and rail signalling systems.


"It was a very big struggle for us to win this battle for localisation because people resisted it, thinking we might get it cheaper if we imported the products…," he said.


Democratic Alliance public enterprises spokeswoman Natasha Mazzone highlighted the problem of the same companies being used for government contracts even when they had failed to perform. She called for greater transparency of procurement processes.


Originally published in Business Day
 

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

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Salary: R 600 000 - R 650 000 ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
R600 000 - R700 000 per annum Location: ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
R850 000 - R1 000 000 per annumLocation: ...More

Commodity Manager

  • <500 000 Commodities Permanent Procurement Management Western Cape
R700 000 - R850 000 per annum,Location: Western ...More

National Supply Chain Manager

  • <500 000 Across borders Permanent Procurement Management Supply Chain
R750 000 - R1 000 000 per annum,Location: ...More

Industrial Engineer

  • <500 000 >500 000 Industrial Engineer Operations, Planning & Inventory Permanent Western Cape
R450 000- R500 000 CTC per annum,Location: Western ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
Category: Procurement,Salary: R700 000 - R800 000 per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Category: Consulting,Salary: R750 000 - R800 000 CTC ...More

Logistics Manager

  • <500 000 Across borders Logistics & Warehousing Permanent Procurement Management
Category: Logistics,Salary: R900 000 - R1 000 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Area of Specialisation: Planning,Salary: R500 000 - R650 ...More

Industrial Engineer

  • <500 000 Analyst Gauteng Industrial Engineer Permanent
R800 000 - R850 000 CTC per annum.Location: ...More

Security Manager

  • <500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
(Total Cost to Company R350K - R550K).This is ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R650k - R750k) excluding

Commodity Manager Raw Materials

  • <500 000 Commodities Gauteng Permanent Strategic Sourcing
(Total Cost to Company R980k - R800k) excluding ...More

Commodity Manager Logistics

  • <500 000 Commodities Gauteng Logistics & Warehousing Permanent
(Total Cost to Company R1mil - R900k).Industry: Engineering

Procurement Consultant

  • <500 000 Gauteng Permanent Procurement Consultant Procurement Management
(Total Cost To Company 550K - 450K) includes ...More