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Articles in category: Procurement Ethics
Excessive regulation and red tape, and a lack of skilled workers are major concerns among South African privately held businesses, the first-quarter Grant Thornton International Business Report (IBR) released on Monday showed. These factors, the businesses say, are directly restricting their expansion. The report provides insights into the views and expectations of about 3,000 different privately held businesses across 44 economies each quarter. About 150 of these businesses are based in South Africa.
There was a general feeling of excitement and optimism about the new role of technology to promote transparency and accountability at the Transparency International SpeakUp! event which I attended in March 2013. There was quite a buzz about online denunciation tools in particular, and different Transparency International chapters are looking into ways to embrace new tools or improve existing ones to encourage citizens to report corruption cases. In February 2012, Transparency Morocco launched the online platform Mamdawrinch.com (which means “We will not bribe”). The aim was to provide a tool for anonymous denunciation to encourage people to speak up ...(Read Full Article)
Compliance audits will undoubtedly form a critical component of overall compliance strategies for companies that must document traceability and compliance in their supply chain for conflict minerals compliance. But how far should compliance audits go? Earlier today, Lawrence Heim (Director of The Elm Consulting Group International) suggested that audits should consider traceability and attest down to the mine-site level. This includes chain of custody, refiners/smelters and manufacturing suppliers in the supply chain (e.g., tier 3 semi-finished material supplier; tier 2 parts suppliers; tier 1 component suppliers) as well as at the OEM manufacturing level itself.(Read Full Article)
The Department of Energy (DoE) wishes to acknowledge that it is aware of and supports the Hawks investigation into allegations of criminal activity by certain employees of PetroSA, which is a State-owned company that reports to the DoE, through the Central Energy Fund (CEF) as the shareholder,” spokesperson for the department Thandiwe Maimane said on Monday. Within hours of learning of the matter, the Minister of Energy formally directed the Central Energy Fund (CEF) to investigate procurement undertaken during the period in question.(Read Full Article)
Former World Bank managing director Mamphela Ramphele has said fear is holding South Africa back from tackling procurement corruption. Addressing students, business leaders and academics at Wits University on Thursday, Mamphela Ramphele, the leader of political campaign group AgangSA issued a rallying cry for South African citizens to stand up against abuse within public procurement. Citing estimates that R30 billion is diverted away from government in the purchasing process, she called for her compatriots to over come fear and fight crookedness.“A culture of corruption and impunity is seeping through every level of government, corroding our entire society."(Read Full Article)
The inaugural All About Public Procurement Awards (AAPP Awards) will take place on the 15th of August 2013 at the Emperors Palace, Johannesburg. This is an initiative of the State Owned Enterprise Procurement Forum (SOEPF) in partnership with CIPS Africa coinciding with the longstanding CIPS Annual Dinner and Awards.
Entries are invited from all Procurement and SCM officials in all tiers of the South African government and State Owned Enterprises.
According to reports on Reuters, Infineon Technologies, Philips and several other chipmakers have been sent charge documents by the European Commission outlining its concerns about behaviour among these companies in the smartcard chip market. It is alleged that the companies colluded to fix the price of these chips, which are used in mobile phone sim cards, passports, bankcards and pay-for television systems. Philips told Reuters that it had received a 90-page document and the allegations referred to the period of 2003-2004. The company has since sold its semiconductor business.(Read Full Article)
Audits can prove that something was or was not done, but cannot identify why a person was either unable or unwilling to comply. Nor can they predict what qualities will effect a turnaround. Clean audits in the public sector have decreased from 19 percent to 6 percent, indicating that only one in every 20 government functions works. A good auditing system should ensure probity and compliance, as well as progress and substantive improvement, making sure lessons are learnt from mistakes and that capacity is built. That is clearly not happening and the auditor-general is not examining why his auditing interventions ...(Read Full Article)
Last November a fire ripped through the clothing factory owned by Tazreen Fashions in Bangladesh, killing 112 people and injuring a further 150. After the fire, Wal-Mart said that it was unaware that any of its own-label clothing was being produced in the factory and had not authorised anyone to manufacture goods here for them. A report by Bangladeshi authorities suggested that the factory had not been fit for use and the retailer was criticised for not knowing where in its supply chain that goods were being produced. Wal-Mart said that it will be donating $1.6m to the Institute ...(Read Full Article)
The Department of Environmental Affairs (DEA) is currently awaiting the findings of an investigation by a special audit committee relating to the use of consultants during the awarding of the construction and maintenance tender for its new R8-billion green offices. This followed the release of a report by the Auditor-General (AG) Terence Nombembe last year, which raised concerns around a R10.5-million contract awarded to the Mi3 Consortium to act as a public–private partnership (PPP) adviser during the procurement and bidding process.(Read Full Article)
Overwhelmed by the high number of complaints from its members, the Consulting Engineers of South Africa (Cesa) has established a legal fund to take action against private companies and government entities who abuse the tender system. In a clear indication of its determination, the body has lodged a case reportedly involving one of its own members to the public protector for irregularities involving a bulk infrastructure project in Mpumalanga. The investigation is at an early stage.(Read Full Article)
It is time for government to take responsibility for its actions, Minister in the Presidency Trevor Manuel said on Wednesday. “We (government) should no longer say it's apartheid's fault,” Manuel told reporters at the government leadership summit in Pretoria. “We should get up every morning and recognise we have responsibility. There is no longer the Botha regime looking over our shoulder, we are responsible ourselves.” Manuel said that in 1994, 1995, and 1996, government could perhaps have said “we don't have the experience”, but as the country approached two decades of democracy this was no longer an ...(Read Full Article)
The annual audit of South Africa’s provincial and national government bodies revealed that R28.4-billion was lost to irregular spending - R6.25-billion more than the previous year, said the Auditor-General’s report.In the report, auditor general Terence Nombembe blamed weak internal controls, poor political leadership (from the accounting officer and/or executive authority) and a disregard for procurement rules for the haemorrhage.(Read Full Article)
PetroSA chairperson Benny Mokaba has vacated his position at the company, it was announced on Monday. Mandla Tyala, spokesperson for the Central Energy Fund (CEF) which owns the company, said CEF chairperson Sankie Mthembi-Mahanyele announced Mokaba's departure on Monday morning. "The move follows the conclusion of an investigation which was ordered by the Minister of Energy... Dipuo Peters to investigate the robustness of the procurement system at PetroSA," Tyala said.(Read Full Article)
The Congress of South African Trade Unions said it was "appalled" by the level of irregular and wasteful spending revealed in the auditor general's annual report.(Read Full Article)
…but Board Chairman denies The Ghana National Gas Company (GNCG) is reported to have signed three multi-million dollar contract agreements from January 29 to March this year “with no evidence of the contracts being subjected to the country’s procurement laws”, the Daily Graphic has learnt. The agreements made up of a $15.6 million with AECOM Technology Corporation (AECOM), and a prospecting agreement with Gasol and its local partner African Power Generation (‘AfGen’), were said to have been sign(Read Full Article)
We’ve covered the recent report from the UK National Audit Office on “Improving government procurement” in some depth, but they also recently issued a briefing on sustainable procurement. And it’s a bit of a depressing read for anyone committed to the sustainability agenda, to be honest. We should stress that it is not a full investigative report though – as NAO explains: This briefing has been prepared in response to a request from the Environmental Audit Committee for an update on the Governme(Read Full Article)
Telecommunications group Telkom’s procurement policy and the application thereof was upheld when the Supreme Court of Appeal on Tuesday set aside the North Gauteng High Court’s interim interdict against the company, as requested by ZTE Mzansi. The appeal was upheld with costs, Telkom indicated. In March last year, Telkom was interdicted from implementing its tender for the provision of Multi Services Access Node (MSAN) and concluding any service level agreement with the successful bidders. This ...(Read Full Article)
Avoid joint bids to prevent rigging in public procurement: CCI Director General A K Chauhan, Competition Commission of India (CCI) has suggested various measures that would help in tackling rigging activities in public procurement. According to him Joint Bidding and Sub-Contracting are the major reasons of bid-riging and public procurement should avoid such practice.(Read Full Article)
To overcome corruption in the South African and African construction sectors, governments must work closely with key role-players to ensure there is adequate capacity in the public sector to manage procurement processes and create a regulatory environment for the delivery of infrastructure projects, Public Works Minister Thulas Nxesi said on Friday. “We have to deal with corrupt officials working with corrupt businessmen to siphon off public funds,” he urged at the Council for the Built Environment’s (CBE’s) Indaba, in Boksburg, while adding that there needed to be a fair, equitable, transparent, competitive and cost effective procurement regime that ...(Read Full Article)
A South African public affairs watchdog is investigating a contract for 95 electric locomotives awarded last year by state logistics group Transnet to a joint venture led by a Chinese manufacturer, it said on Thursday. The deal involving Zhuzhou Electric Locomotive Company, a unit of CSR Ltd, is part of a R300-billion upgrade to Transnet's railways and ports to overcome freight bottlenecks. A spokesperson for the office of the Public Protector said the deal was under investigation after a complaint from the Workers International Vanguard Party, a Cape Town-based political group, but declined to give any further details.(Read Full Article)
An investigation commissioned by South Africa's energy minister has unearthed "serious allegations" against current and former senior officials at national oil company PetroSA, the government's Central Energy Fund (CEF) said on Wednesday. The investigation was examining procurement practices with a focus on tenders and contracts whose value exceeded R5-million. "A preliminary report has been issued by the investigating team which has unearthed inappropriate executive override of internal control systems at PetroSA," the CEF said, adding that the investigation was continuing.(Read Full Article)
Finance Minister Pravin Gordhan has issued a stern warning to companies that abuse the public purse while doing business with the state, saying 1,000 more companies would soon come under the South African Revenue Service’s (SARS’s) auditing spotlight. During a discussion at the PwC budget presentation in Sandton, Johannesburg, on Friday, he said he would like to see people "jailed for corruption" when they overpriced, underdelivered and overinvoiced when doing business with the government.
Finance minister Pravin Gordhan said the government's new chief procurement officer, who will be announced shortly, will be responsible for the long-term modernisation of public purchasing in South Africa.
Finance minister Pravin Gordhan said the appointment of the CPO, which was announced last year, would be revealed soon, as he presented the government’s 2013 budget in the National Assembly.
“Procurement transactions take place at too many localities and the contracts are short term,” he said- See more at: http://www.supplymanagement.com/news/2013/south-african-government-cpo-will-lead-procurement-transformation/#sthash.oq6nexHc.dpuf
Finance minister Pravin Gordhan said the appointment of the CPO ...