Finance Minister fires on all cylinders to modernise SA’s procurement system
|Published
An assessment of South Africa’s procurement system using an objective international tool was underway as Treasury aims to strengthen public procurement.
In yesterday's Medium-Term Budget Policy Framework (MTBPF), Finance Minister Enoch Godongwana said Treasury was working with the Organisation for Economic Cooperation and Development (OECD), the World Bank, and the African Development Bank on modernising the procurement system.
Sixteen public procuring institutions were involved, together with civil society organisations, the private sector and labour. The findings and recommendations would be widely consulted, validated and used to inform future reforms.
He explained that Treasury had tabled the Public Procurement Bill in Parliament.
The Bill seeks to create a single regulatory public procurement framework that strengthens the integrity of the procurement system, enhances transparency and promotes transformation.
The Bill empowers procuring institutions to make their procurement system based on uniform norms and standards that the Bill prescribes.
However, Godongwana said, “The all-in-one approach has not worked.”
The Bill had been through an extensive consultation process in government and with social partners. It had considered the recommendations of the Zondo Commission and the President’s response to Parliament thereto.
“We are supporting the Parliamentary processes that are considering the Bill and we look forward to the outcomes. The Bill will not solve all our procurement challenges, but it will make it easier for honest officials to procure and for the corrupt, make it difficult to prevail,” he said.
Furthermore, to support the well-functioning of South African public institutions, Treasury had reviewed all of its Treasury Supply Chain Management (SCM) Instructions to identify which ones are applicable to Schedule 2 entities.
“The review is complete, and I will soon publish the relaxation from most SCM Instructions for Schedule 2 state-owned entities,” he said.
Godongwana said this was done to support these entities to enhance their operations, enable them to deliver infrastructure speedily and liberate them to maintain competitive edge.
BUSINESS REPORT