Public Sector Procurement

Procurement perspectives: exploring a more efficient procurement process

StephenBauld_100.jpgIf a municipality intends to explore the possibilities around effective and efficient procurement by adopting a more strategic approach, then it must place emphasis on taking proactive measures to improve the purchasing function.

"It is not sufficient to rely on only those measures that would prevent things from going wrong; it would be time well spent to concentrate, initially, on conceptualising an overall proactive approach to the procurement function", says Stephen Bauld, a government procurement expert.

Stopping the public procurement rot: don't blame the mouse, blame the hole in the wall!

Parliament-100.jpgThe chickens have come home to roost for public procurement in South Africa − and what a lot of chickens there are! All indications are that public procurement has been beset by peddlers of influence, venal vendors, rogue executives and delinquent boards. Without a doubt, those responsible must be held accountable for their ruinous conduct. But, more importantly, state-owned companies (SOCs) must extract every bit of learning that they can from this calamitous experience. There is a Talmudic saying: "don't blame the mouse, blame the hole in the wall". This aphorism teaches us to not only focus on the transgressors, but to identify systemic weaknesses that have allowed transgressions to occur.

Peter Volmink, a procurement lawyer employed by a major public entity and chair of a special interest group on procurement law, highlights six areas that require focused attention.

Join us at Smart Procurement World Western Cape, where will unpack the lessons procurement has learnt so far form the State Capture Enquiry. What should procurement do NOW to get its constitutional mandate and operate free from external influences? How can procurement be positioned to protect and strengthen core institutions from in South Africa? Join us for this keynote address on 9 April 2019.

Inconsistent laws a public-sector headache when recovering irregular expenditure

HelenVenter_100.jpgThe public sector's struggle to recover irregular expenditure is hamstrung by inconsistent laws. Public-sector specialist Helen Venter unpacks the problem in this month's SmartProcurement.

Municipal materials management may require a counter-intuitive purchasing approach

StephenBauld_100.jpgEnsuring that the right quality of an item is ordered and delivered may seem like a fairly obvious responsibility. However, doing so in practice requires a fairly sophisticated understanding of market conditions and user requirements, which, like many organisations, municipal departments do not possess.

"There is a higher probability of generating measurable savings if municipal purchasing departments play a pro-active role to assist client departments to identify needs before they arise", says government procurement expert Stephen Bauld, in this month's SmartProcurement. Bauld argues that successful municipal materials management may require a counter-intuitive approach towards purchasing.

Good governance + accountability = long-term socio-economic development

DouglasBoateng.jpgLocal government procurement practitioners need to recognise the inextricable link between good governance, accountability and long-term socio-economic development, says Prof. Douglas Boateng.

Factoring political dimensions into municipal procurement

StephenBauld_100.jpgWhen talking about procurement projects for a municipality it is safe to say you must factor in the political dimension.

Although the importance of council supervision in the municipal procurement process is clear, difficulties arise when the political side of council thinking begins to cloud the discharge of its fiduciary responsibility. Stephen Bauld explores the political dimension that procurement must appreciate, in this month's SmartProcurement.

5 pillars - a procurement blueprint for accelerating inclusive growth

Prof_MarcusAmbe.jpgSibongile_Shongwe.jpgThe ambition of creating a developmental state to transform the Apartheid economy has been hamstrung by an inability to implement transformation policies; it is a situation exacerbated by a lack of skills, competencies and capacity; and the patronage of corrupt procurement practices.

Prof. Marcus Ambe, from the University of South Africa's School of Public and Operations Management, in collaboration with Sibongile Shongwe, Director of MtileniMazi Enterprises, unpacks a procurement blueprint to accelerate inclusive growth and socio-economic development, in this month's SmartProcurement.

Simplifying the process of doing business with government

RakgadiMotseto.jpgThe challenge for emerging businesses to access government opportunities continues

Most suppliers believe that doing business with government is easy: it amounts to applying for a job that has no specified minimum requirements, where your business is merely distinguished from the rest.

In this month's SmartProcurement, Rakgadi Motseto, Chief Director: Stakeholders and Client Management Office of the Chief Procurement Officer, responds to questions practitioners commonly ask about suppliers.

Contracts: Paying for what works

SusanDeWitt.jpgAre performance clauses and outcomes-based contracts the answer?

Dr Susan de Witt from the Graduate School of Business at the University of Cape Town unpacks contract performance measurement in this month's SmartProcurement.

The need for compliance and transparency in public procurement

BenardOdote.jpgBenard Odote, Group Managing Director, House of Procurement, looks at the need for governance in public-sector procurement.

New ways needed to procure construction projects in 2018

Stephen_Bauld.jpgManagement methodology in some municipalities is changing for the better, says Stephen Bauld. During 2017, Bauld spent a great deal of my time working on behalf of contractors, raising issues related to construction projects with municipal staff at every level. He has seen a commitment by senior management to make systems better and to listen to industry concerns to make positive changes to the process.

Procurement perspectives: No magical solution when it comes to ethics policy

Stephen_Bauld.jpgCanadian ethics bylaws and policies, are relatively pedestrian compared to our American counterparts. In the United States, municipal ethics ordinances often extend to campaign finance (contributions limits and public financing of campaigns), laws regulating lobbyists, open government or "sunshine" ordinances, as well as highly detailed rules relating to gifts to public officials.

Stephen Bauld, a government procurement expert, unpacks the need to institutionalise ethics in the public sector.

Integrity and competence a must in government procurement


Integrity in government procurement must be held to the highest standards on every RFP and tender issued

Stephen_Bauld.jpgStephen Bauld deals with so many issues related to the integrity of the request for proposal (RFP) process every week. As a government procurement expert, he is concerned about the way municipal procurement staff understand the policies and procedures they need to follow to issue documents to suppliers and contractors.

Douglas Boateng to chair Ghana's Public Procurement Authority

 

DBoateng.JPGProfessor Douglas Boateng has been appointed Chair of Ghana’s Public Procurement Authority (PPA).

A group of Ghana’s procurement, logistics and supply chain fraternity as well as industrialists and business executives has lauded President Nana Addo Dankwah Akufo-Addo decision to appoint Prof. Boateng.

Procurement inefficiencies uphold poor intra-Africa trade

 

LindiweZulu.jpgThe impact of ineffective procurement in Africa has been estimated at US$31,5-billion - US$24,9-billion for sub-Saharan Africa alone - in terms of value leakage – by auditor KPMG.

The inefficiencies are caused by procurement organisations struggling with basic issues around delivering value, such as low use of technology, inadequate skills and non-compliance with procurement policies.

“It is difficult to separate this ineffective procurement from Africa’s trade - they are two intricately linked aspects, which link directly to intra-trade on the continent”, said Minister of Small Business Development Lindiwe Zulu, at Smart Procurement World Western Cape. Minister Zulu added that, “intra-trade accounts for only 10 - 12% of the continent’s trade, in comparison with high levels of inter-regional trade recorded in Europe (60%) and in Asia (40%)”.

Buy local or face audit findings!

 

RobDavies_ProudlySA.jpgUnder the World Trade Organisation’s agreement on Trade-Related Investment Measures, The South African government cannot prescribe to the business sector that they must follow localisation (75% local content in purchases) in the same way it prescribes to public entities.

“We don’t have that ability, and are challenged internationally [if the topic of localisation is broached with international organisations],” said Minister of Trade and Industry, Rob Davies.

However, some business organisations have embraced the spirit under which the Economic Development Department (EDD) negotiated the local content designations, to drive economic development in the country.

Minister Davies shared some of these corporate-level local procurement stories at Proudly SA’s Buy Local Summit, in early April.


 

 

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