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Articles in category: Public Sector
The Gauteng provincial government paid R831m to Gautrain operator Bombela Concession Company up to the end of March in terms of 10 ridership guarantees for the train, Transport Minister Ben Martins said in Parliament on Tuesday. The guarantees provide for the number of commuters who will travel on the Gautrain. When these guaranteed numbers are not reached, the provincial government has to compensate Bombela for the difference. Replying in writing to a question in Parliament by Democratic Alliance transport spokesman Ian Ollis, the minister said Bombela was in terms of its contract only obliged to supply 64 carriages for the ...(Read Full Article)
Transnet has issued bonds to the value of R3.3 billion, the state-owned company said on Monday. Transnet group chief executive Brian Molefe said the move affirmed continued investor confidence in the company and its portfolio of projects, despite the ongoing uncertainty in financial markets. “The state-owned transport and logistics firm had planned on issuing a R1bn bond, but due to the overwhelming demand from the market the bond was oversubscribed by over 3.4 times,” Molefe said. The bond issue was part of Transnet's domestic medium-term note programme, which formed part of the company's R15bn funding programme ...(Read Full Article)
Collaborative procurement is often viewed as the solution to the public sector's funding crisis. But why is there such strong political pressure to collaborate? The obvious answer is to deliver savings, but there is potentially a more divisive myth being created at its heart: the idea that public sector buyers lack commercial skills and are ineffective. True, there is inefficiency, but should the private sector really be our role model – particularly given recent revelations around supply-chain practices, tax structures and their propensity to outsource large parts of their operations overseas?
Better procurement has enabled the government to cut £3.8 billion from its cost base and beat its total savings target for the year by 25 per cent, Cabinet Office minister Francis Maude has announced. He announced £1.6 billion had been saved by reducing the use of consulting and contractors, £800 million through better supplier relations, £1 billion through centralising procurement across the whole public sector - of which £600 million came from central government - and £380 million on advertising and marketing.
Recently it has come to light that our UK government has appointed no less than six leaders from the private sector in order to help it get better ‘value’ from its contracts through the procurement and tendering process. These six new members of the Crown Representative Network have been tasked with using their experience in business to liaise and engage with suppliers at an early stage of the procurement and the tendering process in order to improve both the commercial relationships between the government and suppliers, and also to discuss the best possible contracts in terms of ‘value’.(Read Full Article)
Johannesburg - Gauteng departments spent 99 percent of their total adjusted budget for the 2012/13 financial year, the provincial finance department said on Friday. “This expenditure, which amounted to R74.7 billion, represents a substantial improvement on the previous year,” the department said in a statement. “(It) shows that... departments continue to improve spending to meet the service delivery needs of the people of Gauteng.” This was according to the provincial treasury's state of finances report for the fourth quarter. The departments of health and education were the main drivers of expenditure, accounting for 36 and 38 percent respectively ...(Read Full Article)
Transnet Engineering (TE), a unit of the state-owned freight and logistics company, is exploring new narrow-gauge markets in Latin America, Southeast Asia and Australia in a bid to meet its growth targets, according to strategy and marketing GM Thoba Majoka.Transnet previously had an "Africa first" approach. While it has largely focused on wagons and refurbishment of locomotives and passenger coaches, it has recently built capacity in the manufacture of locomotives.(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.
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)
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)
Following an internal review of nine previous turnaround plans, State-owned national carrier South African Airways (SAA) believes it has finally delivered an “all-encompassing strategy” to its shareholder – one that, if implemented with diligence, will place it on a sound financial and operational footing. Without question, “implementation” has emerged as the watchword, given that none of the previous plans were followed through, despite containing a number of sensible proposals and common themes.(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)
The China Development Bank will loan South African logistics group Transnet about $5 billion (R46 billion) to revamp its ageing railways, which transport commodities including coal and iron ore, a source close to the deal said on Tuesday. “The figure may go up or down and it is a loan,” the source said, but asked not to be named. “The money will be used for railway infrastructure.” The deal was reached before a summit of the leaders of the emerging market powers BRICS - Brazil, Russia, India, China and South Africa - opened in Durban on Tuesday with a goal of helping ...(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)
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)
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)
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.
UK Government procurement reform is being “stifled by departments” being tardy in moving to new central contracts based on large-scale aggregation of demand. Because of a lack of enforcement of the use of centralized purchasing of goods and services maximum savings are not being achieved. No doubt a disbelieving nation will swoon in horror at this dispatch from no man’s land, brought to us by the UK’s National Audit Office in a new report. The conclusions of the report beg a sackful of questions.(Read Full Article)
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 ...