scholarly journals Public Procurement in the South African Economy: Addressing the Systemic Issues

2020 ◽  
Vol 12 (20) ◽  
pp. 8692
Author(s):  
David Fourie ◽  
Cornel Malan

Public procurement fulfils an important role in the economy and public expenditure of a country and can be regarded as a critical indicator of the effectiveness of a government, because it is a central aspect of public service delivery. Notwithstanding various reforms made to date to public sector procurement in South Africa and the application of Supply Chain Management as a strategic policy strategic instrument, the South African public procurement system still faces several challenges and has been strongly criticised. This paper aims to understand the current public procurement environment in South Africa, its dilemmas and challenges, and to propose that public procurement be refocused towards a strategically placed business process, implemented by well-trained and competent procurement officials. The purpose is to provide a theoretical foundation as well as practical guidance regarding the role of public procurement in the South African public sector. The methodology involved an intensive literature study and document analysis to evaluate various official policy documents and official publications to determine the status of South African public procurement. The study found that the majority of challenges faced by public procurement in South Africa can probably be attributed to the implementation of the system, rather than to the system itself. In the shorter and longer term, the public procurement system in South Africa will have no choice but to emerge as a stronger, more resilient, streamlined and efficient provider of goods and services for the greater good of all.

2017 ◽  
Vol 6 (1) ◽  
pp. 24-36 ◽  
Author(s):  
Lawson Naidoo ◽  
Vinessa Naidoo ◽  
Marcus Ambe

This study was prompted by the fact that no research study focused on the application of the Open Contracting principle of disclosure in South African public procurement. The main issue examined in this study pertained to the application of the disclosure principle of Open Contracting in the South African public procurement system. The study population included members of the Chartered Institute of Procurement and Supply Chain (CIPS) employed in the South African public service. This research study used applied, exploratory and non-experimental research in conjunction with descriptive and inferential statistics. The measuring instrument designed for this study included an online survey containing a structured, close-ended questionnaire that measured the disclosure aspect covered in an in-depth literature study. With regard to the results obtained from this study, it is evident that the respondents indicated that there are opportunities to adopt the disclosure principle within South African public procurement. This study provides definite guidelines to procurement practitioners and policy makers concerning the application of proactively disclosing information at the different stages of government procurement. Disclosure in public procurement is rapidly changing and the South African public sector should keep abreast of such changes (e.g., the use of Open Contracting) to ensure that its procurement system is suitably equipped to deliver better deals, minimize fraud and corruption, ensure high quality of performance and a fairer business environment.


Author(s):  
Intaher M. Ambe ◽  
Johanna A. Badenhorst-Weiss

This article reports on an exploration of challenges experienced in the field of procurement within the South African public sector. To institute procurement best practices, a supply chain management system was adopted in South Africa in 2003. The procurement process was granted constitutional status and has been used to address past inequitable policies and practices. It promotes aims which are, arguably, secondary to the primary aim of procurement. For the exploration, a conceptual analytical approach was employed and some of the key guiding pillars of public procurement in South Africa divulged. The challenges restraining effective and efficient implementation of public procurement are also revealed. The article concludes by recommending the development of competency through customised (separate) training materials and programmes, the involvement of stakeholders in the bidding process and the employment of good strategic sourcing practices.


2007 ◽  
Vol 51 (1) ◽  
pp. 1-38 ◽  
Author(s):  
Sope Williams

AbstractThe South African public procurement system is regulated by a constitutional framework and legislation applicable to all tiers of government. An interesting feature of the system is that suppliers may be excluded from government contracts for breaches of procurement or anti-corruption legislation. This article critically examines corruption-related exclusions. It is suggested that there is likely to be a number of problems with the implementation of these exclusions. First, it is not clear how effective they will be in meeting the government's anti-corruption policy. Secondly, in respect of the exclusions imposed through a non-judicial process, there are no guidelines to ensure procedural safeguards, and furthermore, these exclusions may lead to delays and costs in the procurement process – especially when it comes to deciding whether persons or firms related to an excluded firm ought to be excluded. Thirdly, there are issues regarding proportionality of the measures. Fourthly, it may be difficult to maintain a consistent approach in deciding whether to exclude under the non-judicial exclusions. In view of these, for the regime to be effective, the South African government must be prepared to bear the attendant financial and procedural burden.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lindani Myeza ◽  
Naledi Nkhi ◽  
Warren Maroun

PurposeThe study aims to deepen the understanding of why risk management principles are circumvented, thereby contributing to transgressions in public procurement for South African state-owned enterprises (SOEs). A deeper understanding of why risk management principles are circumvented is especially important in South Africa, given the high social, economic and environmental risks to which national and major SOEs are exposed in the procurement process.Design/methodology/approachThe study uses a qualitative design, based on detailed semi-structured interviews with 19 participants comprising management advisors, forensic investigators and auditors to explore why risk management principles are circumvented by South Africa SOEs.FindingsThe results of the study indicate that the tone that is set at political and executive level plays an important role in determining compliance with risk management principles by lower-level staff. Intense levels of political influence at SOEs are the main reason behind risk management systems being undermined.Originality/valueThe current study is one of the first explorations of why transgressions in public procurement continue to be evident despite risk management reforms being adopted by South Africa public sector. The research responds to the call for more studies on why reforms in South Africa public sector are not reducing transgression in public procurement. The study provides primary evidence on the importance of political and executive leadership in influencing the effectiveness of risk management reforms in the public sector.


2018 ◽  
Vol 32 (6) ◽  
pp. 1282 ◽  
Author(s):  
Jyothi Kara ◽  
Angus H. H. Macdonald ◽  
Carol A. Simon

The nereidid Pseudonereis variegata (Grube, 1866) described from Chile includes 14 synonymised species from 10 type localities with a discontinuous distribution, but no taxonomic or molecular studies have investigated the status of this species outside Chile. Two synonymised species, Mastigonereis podocirra Schmarda, 1861 and Nereis (Nereilepas) stimpsonis Grube, 1866, were described from South Africa and investigated here using morphological examination. MtCOI species delimitation analyses and morphology were used to determine the status of P. variegata in South Africa. Morphological examination revealed that museum and freshly collected specimens from South Africa that conform to the general description of P. variegata are similar to M. podocirra and N. stimpsonis with respect to the consistent absence of homogomph spinigers in the inferior neuropodial fascicle, expanded notopodial ligules and the subterminal attachment of dorsal cirri in posterior parapodia. The synonymy of M. podocirra and N. stimpsonis as P. variegata are rejected and P. podocirra, comb. nov. is reinstated. Morphologically, Pseudonereis podocirra differed from specimens from Chile with regard to the numbers of paragnaths, the absence of homogomph spinigers and changes in parapodial morphology along the body. Independence of these species was further supported by genetic distances, automatic barcode gap discovery and multi-rate Poisson tree process species delimitation analyses of 77 mtCOI sequences. Haplotype network revealed no genetic structuring within the South African populations. http://zoobank.org/urn:lsid:zoobank.org:pub:F0B1A5AF-9CE9-4A43-ACCF-17117E1C2F21


Koedoe ◽  
2017 ◽  
Vol 59 (1) ◽  
Author(s):  
Sam M. Ferreira ◽  
Charlene Bissett ◽  
Carly R. Cowell ◽  
Angela Gaylard ◽  
Cathy Greaver ◽  
...  

African rhinoceroses (rhinos) experienced a poaching onslaught since 2008 with the epicentre in South Africa where most of the world’s rhinos occur. South African national parks, under the management of South African National Parks (SANParks), are custodian to 49% of South Africa’s white and 31% of the country’s black rhinos. We collated information on rhino population sizes in seven national parks from 2011 to 2015. We include and report on rhino surveys in Kruger National Park during 2014 and 2015. Southwestern black rhinos increased over the study period, which allows SANParks to achieve its contribution to South Africa’s 2020 target of 260 individuals. South-central black rhinos declined over the study period because of poaching in the Kruger National Park, making it difficult for SANParks to realise a 9% increase per annum for its expected contribution to the South African target of 2800 individuals. For southern white rhinos, SANParks requires 5% annual growth for its contribution to the South African target of 20 400 individuals. To continue to evaluate the achievement of these targets, SANParks needs annual population estimates relying on total counts, mark-recapture techniques and block-based sample counts to track trends in rhino populations. SANParks’ primary challenge in achieving its contribution to South Africa’s rhino conservation targets is associated with curbing poaching in Kruger National Park.Conservation implications: The status and trends of rhino species in SANParks highlight key challenges associated with achieving the national targets of South Africa. Conservation managers will need to improve the protection of southern white rhino, while the Department of Environmental Affairs need to be made aware of the challenges specifically associated with not achieving targets for south-central black rhino. Outcomes for south-western black rhino have already realised and the good conservation efforts should continue.


2012 ◽  
Vol 14 (1) ◽  
Author(s):  
Christoffel J. Hendriks

Background: Integrated Financial Management Information Systems (IFMIS) can improve public sector management by providing real-time financial information to managers in order to enhance their decision-making capabilities. The South African Public Service is currently busy with the implementation of an IFMIS. However, the implementation of such a project has proved to be a very demanding undertaking and has not been met with resounding success.Objectives: The research was conducted in order to identify the challenges and risks that are involved in the implementation of the IFMIS in South Africa. After identification of the challenges and risks, solutions or guidelines were developed that may make the implementation more successful.Method: The methodology that was used is that of a literature study where theories were explored and used to solve a research problem. Based on the theoretical research, solutions and guidelines were developed to solve challenges and risks experienced.Results: The results indicated that there are a number of challenges involved with the implementation of an IFMIS. A set of best practice guidelines was developed that may make the implementation more successful.Conclusion: The sheer size and complexity of an IFMIS poses significant challenges and a number of risks to the implementation process. There are, however, critical success factors or best practices that can be used for the project to succeed. It is recommended that these best practices be used by the South African Public Service. 


Author(s):  
Marius De Beer ◽  
Neil Barnes

The aim of the article is to report on an investigation into IC as portrayed by thought leaders and research groups, against a South African background. An attempt was made to clarify relevant terminology, develop a model and methodology for South African application, and assess the status of IC within the South Africa context through a qualitative methodology using Focus Groups. Results indicated that IC in South Africa is still in the infancy stage. However, models and methodologies developed in other continents could with changes be applied in the South African context. OpsommingDie doel van hierdie artikel is om verslag te doen oor die ondersoek na Intellektuele Kapitaal (IK) soos voorgestel deur vakkundiges en navorsingsgroepe, teen die agtergrond van die Suid Afrikaanse situasie. ’n Poging is aangewend om tersaaklike terminologie te verklaar, ’n model en metodologie vir Suid Afrikaanse aanwending te ontwikkel, en dit sowel as die status van IK in die Suid Afrikaanse omgewing te ondersoek deur middel van ’n kwalitatiewe metodologie, naamlik fokusgroepe. IK in Suid Afrika is steeds in die kinderskoene. Modelle en metodologieë ontwikkel in ander lande kan egter met aanpassings aangewend word vir aanwending in die Suid Afrikaanse omgewing.


2018 ◽  
Vol 7 (1) ◽  
pp. 21-31 ◽  
Author(s):  
Lawson Naidoo ◽  
Vinessa Naidoo ◽  
Marcus Ambe

The main purpose of the study was to establish the conformity of South African legislation and policies to the global principles of Open Contracting. The specific objective of the study was to establish whether South African legislation supports the application of Open Contracting in public sector procurement. The study employed a descriptive survey research design. Primary data was collected using questionnaires targeting members of the Chartered Institute of Procurement and Supply Chain (CIPS) employed in the South African public service. A total of 300 (100%) completed questionnaires were returned. Fifty-two (52) of the targeted 300 respondents were excluded from the study. They were found not to be “public procurement champions”. This would imply that a final total sample size of 248 was employed in this study, thus a realization of 82.7%. The study findings revealed that although government institutions have policy statements for Open Contracting, the principles are not fully implemented. The study recommends that the National Treasury put forward a single coherent, comprehensive and overarching procurement law to standardize and clarify the procurement process to be followed by procuring entities in South Africa. Particularly the study recommends the development of a policy framework for the implementation of Open Contracting in the South African public sector procurement system.


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