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Articles in category: Public Sector
Financial problems at Eskom have pushed the government to look into selling stakes in state companies to free up funds to update the utility and ease power blackouts.
President Jacob Zuma's ANC has long been reluctant to sell company stakes to ease the strain on the budget, for fear of upsetting powerful labour union allies who say this would cause job losses.
But state-owned Eskom urgently needs 250 billion rand to upgrade its infrastructure and this has left the ANC, managing a national debt of 50 percent of GDP, with little choice but to rethink the state ownership model ...(Read Full Article)
South Africa has suffered its worst power shortages in six years this month due to creaking power plants and emergency maintenance. Eskom is facing a $20-billion funding shortfall over the next four years, forcing the government to consider selling state assets to bail out the utility.
The government announced on Thursday that it would launch a private sector-led coal-fired power plant programme by January 2015, which should add 2 500 MW of generation capacity to the grid.(Read Full Article)
The Department of Mineral Resources would like to warn members of the public against an organised syndicate (s) scamming unsuspecting members of the public and claiming to act on behalf of the department.
One of the ways in which the syndicate operates is by requesting quotations for various goods and services from potential service providers, locally and abroad.(Read Full Article)
Besides tenders for cruise terminals at the Cape Town and Durban harbours, Transnet National Ports Authority (TNPA) plans to release a series of request for proposals (RFPs) in the coming months for terminal prospects at a number of the country’s commercial ports.(Read Full Article)
The South African government is seeking bids from international and domestic advisers with expertise to design, develop and implement programmes for the “procurement of energy from independent power producers (IPPs)”.
The request for proposals (RFP) has been issued by the Development Bank of Southern Africa (DBSA) on behalf of the Department of Energy (DoE) and the National Treasury and appears to be the precursor to bidding processes that should extend government’s IPP procurement reach beyond renewable energy.
However, a similar RFP was released in August 2013, which failed to yield any procurement processes.(Read Full Article)
South Africa’s National Treasury on Friday reissued its amended request for proposal (RFP) for the five-year multibillion-rand project to replace the legacy systems currently in use with an enterprise resource planning (ERP) solution for an integrated financial management system (IFMS).(Read Full Article)
Government departments and state entities have come under fire from the Auditor-General for poor performance and failing to jack up their systems to comply with the law in the issuing of tenders.
This was after Auditor-General Kimi Makwetu found that only 25 percent of departments and entities received clean audits during 2013/14.
Makwetu, who was releasing the report on the performance of departments at national level and provinces in Parliament on Wednesday, said it was perturbing that 72 percent of the departments and entities did not comply with the law when it came to supply-chain management.
Auditor-General Kimi Makwetu has called on all government leaders to play a crucial role in ensuring that government departments and entities improve their audit outcomes. He has raised concerns over irregular expenditure, non-compliance with legislation, auditees with financial risk indicators and financial misstatements – where auditors have to help auditees correct their annual performance reports to achieve better outcomes.(Read Full Article)
REMGRO executive chairman Johann Rupert launched a downbeat diatribe against the government at the company’s annual general meeting on Tuesday.
Mr Rupert also criticised the government at last year’s meeting, telling his audience that he wondered how people did business in SA where red tape and corruption were "pervasive".(Read Full Article)
WOULD Transnet Freight Rail CEO Siyabonga Gama have joined the state-owned rail company if he had known how tough the job would be?
These days, as Transnet posts massive profits and tonnages continue to rise, it would be easy to say yes.
It has not always been this way, however. Transnet and its bloated, inefficient forebears have long been easy targets for being more about sheltered employment than providing a freight transport service that customers wanted(Read Full Article)
Cabinet approves implementation of programme to ensure compliance by government departments with policy on procuring goods, services from local suppliers(Read Full Article)
THE importance of public-private partnerships is a prevalent theme of the National Development Plan. Such a partnership is already taking place at the very highest level between business and government with dedicated task teams working behind the scenes to tackle difficult issues of the NDP, says Leslie Maasdorp, CEO of education group Advtech who is extensively involved in the process.
Progress is slow, concedes Cas Cavoodia in a presentation in August. Cavoodia, as acting head of Business Unity SA (Busa), is co-ordinating business’ engagement with government.(Read Full Article)
Trade and Industry Minister Dr Rob Davies reiterated on Tuesday that the procurement of goods that conform to local content requirements was not just a recommendation for State entities but a legal requirement.
During a Portfolio Committee on Trade and Industry briefing, he noted that all organs of State were obligated to procure goods that were on the designated list and that conformed to local content requirements.(Read Full Article)
South Africa plans to spend $2.2-billion over two years to buy HIV/AIDS drugs for public hospitals, a government minister said on Monday, as a study shows the prevalence of the virus is rising.
Speaking at a manufacturing plant of drugmaker Aspen Pharmacare, Trade and Industry Minister Rob Davies said the government aims to buy three quarters of the drugs from local manufacturers.(Read Full Article)
The Gauteng Provincial Government has announced that the upgrade of Cedar Road in Fourways, Johannesburg with an estimated value of R50 million is the pilot project for the new open tender process.
The pilot project was officially unveiled by Gauteng MEC for Finance, Barbara Creecy, and MEC for Roads and Transport, Ismail Vadi on Monday to restore public confidence in the provincial government’s tender processes.
The two provincial departments are piloting new steps to improve transparency of the process and compliance with supply chain management provisions of the Public Finance Management Act.
Central to this is the decision to ...
Governments, academics and tech gurus over the last couple of years have been transfixed with the prospect that better and bigger data can help us solve the world’s more entrenched problems – including corruption and poverty. The United Nations has also caught on to this trend and yesterday released a report, compiled by experts, which […](Read Full Article)
LACK of oversight and compliance and the high cost of local goods are some of the hurdles hampering government’s local procurement drive, says Leslie Sedibe, CEO of Proudly SA, a "Buy Local" marketing initiative.
Speaking at a local procurement conference, held in partnership with the Congress of South African Trade Unions (Cosatu) in the Western Cape on Tuesday, Mr Sedibe said that some local, provincial and national departments were effectively breaking the law by not adhering to the local procurement policies put in place by government.(Read Full Article)
The internal strife at SAA is attributed by insiders to battles over procurement and contracts.
SOUTH African Airways (SAA) chairwoman Dudu Myeni on Monday defied Public Enterprises Minister Lynne Brown’s instruction to immediately reinstate CE Monwabisi Kalawe, whom Ms Myeni suspended suddenly last week.
Ms Myeni’s refusal to co-operate with Ms Brown is the latest development in a boardroom battle at the airline in which Ms Myeni has found herself pitted against most of her former board colleagues, as well as Mr Kalawe. On Monday, a spokesman for Ms Brown, Colin Cruywagen, said she had requested written reasons ...(Read Full Article)
Public service innovators gathered at Emperor's Palace, in Kempton Park, on Friday evening to be honoured for their innovations.
The 12th Public Sector Innovation Awards featured among others innovations that improve service delivery, use Information Communication and Technology (ICT) for effective service delivery and innovations that enhance internal systems of government.
Minister of Public Service and Administration, Collins Chabane, told innovators gathered at the awards ceremony that their innovations dispel the myth that public servants are lazy and incompetent people who can't come up with creations to improve service delivery.(Read Full Article)
The Department of Small Business Development is working towards reversing the high failure rate of new small businesses.
Government has proposed a new framework for funding state-owned companies, which will include closer monitoring of such entities.
In the Medium Term Budget Policy Statement (MTBPS) tabled in Parliament on Wednesday, National Treasury has said that state-owned companies and public entities play important roles in realising government’s economic and social mandate.
These entities need to be financially sound and operationally effective, contributing to development without draining the fiscus.
“Government is proposing a new framework for funding state-owned companies that will distinguish purely commercial activities from the costs of exercising their developmental mandate,” said National Treasury in the MTBPS.
Knock-on effects include inability to repay loans and to obtain tax clearance certificates for tendering purposes(Read Full Article)