In a bid to eliminate fraud and corruption, provincial government departments will have to go through the provincial treasury when buying certain goods and services.
Provincial treasury MEC Sakhumzi Somyo last week announced that procurement of commodities and services such as computer equipment, travel and accommodation, stationery and office supplies would now be centralised in his office.
Delivering his policy speech at the Bhisho legislature, Somyo revealed that national government had resolved to professionalise supply chain management (SCM) in all government spheres.
He said the process to centralise procurement was in a bid “to address shortcomings regarding fraud and corruption in SCM environment”.
Somyo said this would be done to maximise output and realise value for money. Other commodities and services to be centralised, includes the purchase of mobile communication tools and the education department’s learner and teacher support material.
“As provincial treasury, we are actively involved in the process of centralised procurement initiatives undertaken at national level.
“In this process, the province will benefit as some of shortcomings regarding fraud and corruption in SCM, will be addressed,” Somyo said.
According to Somyo, SCM was key to the accelerated delivery of services, ensuring value creation, socioeconomic transformation and fiscal prudence.
The province has budgeted more than R31-billion for goods and services over the next three years.
In the 2015-16 financial year, R10.4-billion of the province’s R64.9-billion total budget will go towards procurement of goods and services for state departments and parastatals.
Speaking to the Daily Dispatch yesterday, Somyo said the centralisation of procurement would begin in the 2015-16 financial year which starts next month.
He said his office was busy working on procedures to be followed to implement the process.
He said this would also help the province to save on costs in goods and services as they would now be buying in bulk and be eligible for larger discounts.
Somyo said the national government was also working on a pricing model initiative, which sought to standardise pricing of goods and services procured by the state.
“…our infrastructure pricing is not competitive and is the highest in the country.
“We are in full support of this pricing model initiative which we will share with provincial departments as we seek to influence competitive pricing,” said Somyo.
Border-Kei Chamber of Business head Les Holbrook yesterday welcomed the idea to centralise procurement, saying such a move would be “more than welcomed” by business sector if it helped to speed up payments to suppliers.
“We are hoping this initiative will see suppliers being paid on time as they will be dealing with one specific department – because failure to pay within 30 days reduces the opportunity to have them staying in business,” Holbrook said. — asandan@dispatch.co.za
New bid to fight purchasing fraud
Provincial treasury MEC Sakhumzi Somyo last week announced that procurement of commodities and services such as computer equipment, travel and accommodation, stationery and office supplies would now be centralised in his office.
Delivering his policy speech at the Bhisho legislature, Somyo revealed that national government had resolved to professionalise supply chain management (SCM) in all government spheres.
He said the process to centralise procurement was in a bid “to address shortcomings regarding fraud and corruption in SCM environment”.
Somyo said this would be done to maximise output and realise value for money. Other commodities and services to be centralised, includes the purchase of mobile communication tools and the education department’s learner and teacher support material.
“As provincial treasury, we are actively involved in the process of centralised procurement initiatives undertaken at national level.
“In this process, the province will benefit as some of shortcomings regarding fraud and corruption in SCM, will be addressed,” Somyo said.
According to Somyo, SCM was key to the accelerated delivery of services, ensuring value creation, socioeconomic transformation and fiscal prudence.
The province has budgeted more than R31-billion for goods and services over the next three years.
In the 2015-16 financial year, R10.4-billion of the province’s R64.9-billion total budget will go towards procurement of goods and services for state departments and parastatals.
Speaking to the Daily Dispatch yesterday, Somyo said the centralisation of procurement would begin in the 2015-16 financial year which starts next month.
He said his office was busy working on procedures to be followed to implement the process.
He said this would also help the province to save on costs in goods and services as they would now be buying in bulk and be eligible for larger discounts.
Somyo said the national government was also working on a pricing model initiative, which sought to standardise pricing of goods and services procured by the state.
“…our infrastructure pricing is not competitive and is the highest in the country.
“We are in full support of this pricing model initiative which we will share with provincial departments as we seek to influence competitive pricing,” said Somyo.
Border-Kei Chamber of Business head Les Holbrook yesterday welcomed the idea to centralise procurement, saying such a move would be “more than welcomed” by business sector if it helped to speed up payments to suppliers.
“We are hoping this initiative will see suppliers being paid on time as they will be dealing with one specific department – because failure to pay within 30 days reduces the opportunity to have them staying in business,” Holbrook said. — asandan@dispatch.co.za
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos