Feb 22, 2012
Moves under way to tighten procurement as R1.1tr Budget is unveiledBack
System|Systems|Procurement Systems|Service|Systems|Pravin Gordhan
© Reuse this
The Budget, which was the first ever to breach the R1-trillion mark, translated into a doubling, in real terms, from expenditure levels ten years earlier, in 2002/3. But the Budget Review notes that, despite consistent growth in public spending, there had not been a commensurate improvement in service-delivery outcomes.
“Over the period ahead, government is taking steps to strengthen efficiency in public spending, to eliminate wastage, to improve the alignment between allocations and policy priorities, and to root out corruption.”
Public-sector financial management failures would receive attention and there might also be changes to regulations to ensure greater transparency and public disclosure and more rigorous tender procedures.
Gordhan also announced some specific steps being taken by National Treasury to improve government’s procurement capability, including the appointment of a chief procurement officer, who will have overall responsibility for monitoring procurement across government.
The competencies and capabilities required by those performing procurement functions would also be reviewed and a national price reference system established to detect deviations from “acceptable prices”.
The tax clearance system would be strengthened to ensure that those who had defrauded the State could no longer do business with government and steps would be taken to improve the ability of departments to set the specifications for tenders.
“The Minister of Public Works and I have agreed to undertake a joint review of the validity and cost effectiveness of all government property leases,” Gordhan announced.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Economy News
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.