President Jacob Zuma
Photo by: Duane Daws
A pending change to its supply chain management system will stop government getting stuck with suppliers with the "highest" price for goods and services, President Jacob Zuma said on Thursday.
"We are taking action to improve the supply chain management system in government to prevent the fruitless and futile expenditure and corruption and other problems," he told MPs in Parliament, responding to debate on last week's state-of-the-nation address.
Zuma said government each year bought goods, services and infrastructure worth about R500-billion.
"Often, we pay the highest price, and one part of government does not know how much the other part of government pays for goods or services.
"The bulk of negative audit opinions arise from potentially avoidable procurement violations. This is also an area where corruption or allegations of corruption occur."
To counter this, government had established a chief procurement office, set to become operational on April 1 this year.
All tenders would be posted on an electronic tender system, available across the country.
"A centralised supplier database will also be phased in, starting from April 1 [this year].
"Once this is functional, it will replace the 600 or so supplier databases that currently exist."
The system would offer a quick and more effective system of verifying supplier information, he said.