How procurement industry trends can lessen the impact of procurement delays at Eastern Cape Department of Health (ECDOH)
- Authors: Mgijima, Celelwa
- Date: 2023-12
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Public contracts -- South Africa -- Eastern Cape , Purchasing -- Management
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/65749 , vital:74234
- Description: This research study came about as a result of healthcare failures and underperformance at the Eastern Cape Department of Health, causing procurement delays. Procurement is central to the government service delivery system as it promotes goals that are secondary to the primary aim of procurement, such as using procurement to promote social, industrial, or environmental policies. The ultimate goal of the study was to research the root cause for procurement delays and how improvements can be brought about through studying procurement industry trends. The critical step to resolve bottlenecks in the procurement system is to investigate the root cause. Six causes of procurement delays emerged from the literature due to: (1) procurement staff, (2) procurement irregularities, (3) poor budget planning and demand forecasting, (4) poor communication, (5) procurement structure, and, (6) manual systems used for procurement transactions. Guided by these causes of procurement delays, the researcher developed a questionnaire to understand the cause of delays at the Eastern Cape Department of Health. An interpretivism research paradigm (quantitative) was selected to analyze research on best practices. The researcher distributed questionnaires as a method for collecting data from the identified sample size of 90. The purpose of the questionnaire was to validate the data collected during the literature review. Out of the distributed sample, 69 responses were received and used for analysis, thus representing a 74% response rate, which is considered acceptable. The researcher used descriptive analysis to interpret data. The study's key findings indicated that ECDOH employees had been fairly trained on the SCM policies within the department. However, there is a concerning representation of 40,6% of employees who have not been provided with training, which could impact responsiveness to the procurement process. The study further revealed that 85,5% of employees understood the impact of procurement delays due to irregular expenditure (an Auditor General repeat finding for the ECDOH). , Thesis (MBA) -- Faculty of Business and Economic Sciences, Business School, 2023
- Full Text:
- Date Issued: 2023-12
- Authors: Mgijima, Celelwa
- Date: 2023-12
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Public contracts -- South Africa -- Eastern Cape , Purchasing -- Management
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/65749 , vital:74234
- Description: This research study came about as a result of healthcare failures and underperformance at the Eastern Cape Department of Health, causing procurement delays. Procurement is central to the government service delivery system as it promotes goals that are secondary to the primary aim of procurement, such as using procurement to promote social, industrial, or environmental policies. The ultimate goal of the study was to research the root cause for procurement delays and how improvements can be brought about through studying procurement industry trends. The critical step to resolve bottlenecks in the procurement system is to investigate the root cause. Six causes of procurement delays emerged from the literature due to: (1) procurement staff, (2) procurement irregularities, (3) poor budget planning and demand forecasting, (4) poor communication, (5) procurement structure, and, (6) manual systems used for procurement transactions. Guided by these causes of procurement delays, the researcher developed a questionnaire to understand the cause of delays at the Eastern Cape Department of Health. An interpretivism research paradigm (quantitative) was selected to analyze research on best practices. The researcher distributed questionnaires as a method for collecting data from the identified sample size of 90. The purpose of the questionnaire was to validate the data collected during the literature review. Out of the distributed sample, 69 responses were received and used for analysis, thus representing a 74% response rate, which is considered acceptable. The researcher used descriptive analysis to interpret data. The study's key findings indicated that ECDOH employees had been fairly trained on the SCM policies within the department. However, there is a concerning representation of 40,6% of employees who have not been provided with training, which could impact responsiveness to the procurement process. The study further revealed that 85,5% of employees understood the impact of procurement delays due to irregular expenditure (an Auditor General repeat finding for the ECDOH). , Thesis (MBA) -- Faculty of Business and Economic Sciences, Business School, 2023
- Full Text:
- Date Issued: 2023-12
The challenges facing small, medium and microsize enterprise in public procurement: a case of Sundays River Valley Municipality
- Authors: Mkele, Makhaya Nelson
- Date: 2019
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Government purchasing -- Case studies Small business -- South Africa -- Eastern Cape Small business -- Research -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: http://hdl.handle.net/10948/40017 , vital:35675
- Description: The purpose of this study is to investigate challenges facing Small, Medium and Micro Enterprises (SMMEs) in order to improve the participation of SMMEs in public procurement processes within category B municipalities. A Total Quality Management approach was used to interpret the manner in which to install change within a selection of supplier procedures. The study employed desktop analysis to explain and describe the challenges SMMEs are facing in public procurement in the Sundays River Valley Municipality. Based on the discussions of the participation of SMMEs in public procurement, the challenges which exist within a centralised approach of public procurement were discovered. The findings of the study revealed that SMMEs are challenged by the lack of entrepreneurial coaching by local government, low demand for the commodities, lack of experience, skills and knowledge, limited access to debt finance, poor marketing skills, poor managerial and lack of planning skills, gaps in implementation of preference point system, poor management of core strategies of the preferential system, gaps in implementation of preference point system, poor management of the tender system, improper integration of central supplier database, globalisation and the impact of e-procurement on local government level. Subsequently, the study made recommendations in this regard.
- Full Text:
- Date Issued: 2019
- Authors: Mkele, Makhaya Nelson
- Date: 2019
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Government purchasing -- Case studies Small business -- South Africa -- Eastern Cape Small business -- Research -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: http://hdl.handle.net/10948/40017 , vital:35675
- Description: The purpose of this study is to investigate challenges facing Small, Medium and Micro Enterprises (SMMEs) in order to improve the participation of SMMEs in public procurement processes within category B municipalities. A Total Quality Management approach was used to interpret the manner in which to install change within a selection of supplier procedures. The study employed desktop analysis to explain and describe the challenges SMMEs are facing in public procurement in the Sundays River Valley Municipality. Based on the discussions of the participation of SMMEs in public procurement, the challenges which exist within a centralised approach of public procurement were discovered. The findings of the study revealed that SMMEs are challenged by the lack of entrepreneurial coaching by local government, low demand for the commodities, lack of experience, skills and knowledge, limited access to debt finance, poor marketing skills, poor managerial and lack of planning skills, gaps in implementation of preference point system, poor management of core strategies of the preferential system, gaps in implementation of preference point system, poor management of the tender system, improper integration of central supplier database, globalisation and the impact of e-procurement on local government level. Subsequently, the study made recommendations in this regard.
- Full Text:
- Date Issued: 2019
A study of procurement and administration in the Department of Health in the Eastern Cape
- Authors: Xatula, Meyisi Sigqibo
- Date: 2017
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Public administration -- South Africa -- Eastern Cape Management -- Procurement
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: http://hdl.handle.net/10948/13458 , vital:27205
- Description: The study investigated issues concerning procurement and administration in the Department of Health (DoH) in the Eastern Cape and has further investigated the role of the implementation of the Public Finance Management Act (PFMA), Act 1 of 1999 in the department. That included issues associated with the administration and procurement in relation to service providers from the private sector. The DoH in the Eastern Cape Province delivers:“ … a quality health service to the people of the Eastern Cape Province promoting a better life for all and ensures accessible, comprehensive, and integrated services in the province, emphasising the primary health care approach, as well as utilising and developing all resources to enable present and future generations to enjoy good health and quality of life” (Department of Health [DoH], Eastern Cape, Departmental Annual Performance Plan, 2013:3). Various researchers have investigated the implementation of the PFM Act 1 of 1999 and have identified gaps and made recommendations regarding the identified gaps. The study is based on the following reports from various authors: According to Pillay (2013), since 1994 every public sector department has lost approximately R385 billion to fraud, corruption and maladministration. Government employees have accepted kickbacks in exchange for rigging tenders, including focusing on high levels of corruption (Albert, 2011:1). The fraud and corruption in the Eastern Cape DoH, which involves nepotism, corruption and fraud amounting to a million rand in the audit report of 2013, have prompted calls by the opposition for interventions (PricewaterhouseCoopers [PWC], 2013:9). Departmental Annual Performance Plan for 2013/2014. Impact of accountability and ethics on public service delivery: a South African perspective which involves accountability stating that all government departments have to be efficient to ensure value for public funds including the qualitative and value-laden expectations of the society (Raga & Taylor, 2008:1). EC (2010:9), Audit Report: Health Department, Eastern Cape. King III Report (2009) – Corporate Governance. The study has built on previous research conducted by other researchers who have conducted research on the issue of the implementation of the Public Finance Management Act 1 (PFM Act 1) of 1999, and had identify further gaps not previously identified by other researchers or in the audits. In addition, this study aims to also identify shortcomings that have been described in the recent audits 2013/2014 of the DoH, Eastern Cape. Together with the new gaps identified in the PFM Act 1 of 1999, the researcher aims to make a number of recommendations to improve the effectiveness of the implementation of the PFM Act 1 of 1999. The PFM Act 1 of 1999 was promulgated by the South African government in 1999. The Act promotes the objective of good financial management in order to maximise service delivery through effective and efficient use of available limited resources as well as credible interaction with private sector service providers. A key objective of this Act is to put in place a more effective financial accountability system over public entities. The objectives of the Act are to: Modernise the system of financial management, Enable public sector managers to manage, while at the same time being accountable, Ensure timely provision of quality information, To eliminate waste and corruption in the use of public assets.
- Full Text:
- Date Issued: 2017
- Authors: Xatula, Meyisi Sigqibo
- Date: 2017
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Public administration -- South Africa -- Eastern Cape Management -- Procurement
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: http://hdl.handle.net/10948/13458 , vital:27205
- Description: The study investigated issues concerning procurement and administration in the Department of Health (DoH) in the Eastern Cape and has further investigated the role of the implementation of the Public Finance Management Act (PFMA), Act 1 of 1999 in the department. That included issues associated with the administration and procurement in relation to service providers from the private sector. The DoH in the Eastern Cape Province delivers:“ … a quality health service to the people of the Eastern Cape Province promoting a better life for all and ensures accessible, comprehensive, and integrated services in the province, emphasising the primary health care approach, as well as utilising and developing all resources to enable present and future generations to enjoy good health and quality of life” (Department of Health [DoH], Eastern Cape, Departmental Annual Performance Plan, 2013:3). Various researchers have investigated the implementation of the PFM Act 1 of 1999 and have identified gaps and made recommendations regarding the identified gaps. The study is based on the following reports from various authors: According to Pillay (2013), since 1994 every public sector department has lost approximately R385 billion to fraud, corruption and maladministration. Government employees have accepted kickbacks in exchange for rigging tenders, including focusing on high levels of corruption (Albert, 2011:1). The fraud and corruption in the Eastern Cape DoH, which involves nepotism, corruption and fraud amounting to a million rand in the audit report of 2013, have prompted calls by the opposition for interventions (PricewaterhouseCoopers [PWC], 2013:9). Departmental Annual Performance Plan for 2013/2014. Impact of accountability and ethics on public service delivery: a South African perspective which involves accountability stating that all government departments have to be efficient to ensure value for public funds including the qualitative and value-laden expectations of the society (Raga & Taylor, 2008:1). EC (2010:9), Audit Report: Health Department, Eastern Cape. King III Report (2009) – Corporate Governance. The study has built on previous research conducted by other researchers who have conducted research on the issue of the implementation of the Public Finance Management Act 1 (PFM Act 1) of 1999, and had identify further gaps not previously identified by other researchers or in the audits. In addition, this study aims to also identify shortcomings that have been described in the recent audits 2013/2014 of the DoH, Eastern Cape. Together with the new gaps identified in the PFM Act 1 of 1999, the researcher aims to make a number of recommendations to improve the effectiveness of the implementation of the PFM Act 1 of 1999. The PFM Act 1 of 1999 was promulgated by the South African government in 1999. The Act promotes the objective of good financial management in order to maximise service delivery through effective and efficient use of available limited resources as well as credible interaction with private sector service providers. A key objective of this Act is to put in place a more effective financial accountability system over public entities. The objectives of the Act are to: Modernise the system of financial management, Enable public sector managers to manage, while at the same time being accountable, Ensure timely provision of quality information, To eliminate waste and corruption in the use of public assets.
- Full Text:
- Date Issued: 2017
Perceptions in the implementation of supply chain management processes : the case of the Department of Local Government and Traditional Affairs in the Eastern Cape
- Authors: Aplom, Busisiwe
- Date: 2014
- Subjects: Business logistics -- South Africa -- Eastern Cape , Government purchasing -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:8346 , http://hdl.handle.net/10948/d1020781
- Description: When the African National Congress (ANC) took office in 1994 it introduced various policies that would govern budgetary and financial reforms in South Africa. The main objective was to modernize the management of the public sector. Even though government Departments have started implementing the Supply Chain Management strategies, there are still some challenges and deficiencies that hinder appropriate implementation. The key research objectives of the study is to investigate and evaluate the implementation of Supply Chain Management in service delivery with specific focus in procurement processes of goods and services in the Eastern Cape Department of Local Government and Traditional Affairs This study has demonstrated perceptions in the implementation of Supply Chain Management (SCM) within the Department of Local Government and Traditional Affairs in the Eastern Cape Province, South Africa. The overwhelming majority of participants have shown dissatisfaction with the implementation of SCM. Service providers argue that there is no opportunity for them to develop as Small, Micro and Medium Enterprises (SMMEs) and only those service providers who are fully developed benefit from SCM. The study intends to establish and highlight the challenges that the Eastern Cape Department of Local Government and Traditional Affairs is presently faced with in regard to implementation procurement processes among staff members, managers and service providers This study is mainly qualitative but also exposes the reader to the quantitative research method
- Full Text:
- Date Issued: 2014
- Authors: Aplom, Busisiwe
- Date: 2014
- Subjects: Business logistics -- South Africa -- Eastern Cape , Government purchasing -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:8346 , http://hdl.handle.net/10948/d1020781
- Description: When the African National Congress (ANC) took office in 1994 it introduced various policies that would govern budgetary and financial reforms in South Africa. The main objective was to modernize the management of the public sector. Even though government Departments have started implementing the Supply Chain Management strategies, there are still some challenges and deficiencies that hinder appropriate implementation. The key research objectives of the study is to investigate and evaluate the implementation of Supply Chain Management in service delivery with specific focus in procurement processes of goods and services in the Eastern Cape Department of Local Government and Traditional Affairs This study has demonstrated perceptions in the implementation of Supply Chain Management (SCM) within the Department of Local Government and Traditional Affairs in the Eastern Cape Province, South Africa. The overwhelming majority of participants have shown dissatisfaction with the implementation of SCM. Service providers argue that there is no opportunity for them to develop as Small, Micro and Medium Enterprises (SMMEs) and only those service providers who are fully developed benefit from SCM. The study intends to establish and highlight the challenges that the Eastern Cape Department of Local Government and Traditional Affairs is presently faced with in regard to implementation procurement processes among staff members, managers and service providers This study is mainly qualitative but also exposes the reader to the quantitative research method
- Full Text:
- Date Issued: 2014
Improving procurement management practices in the public sector : a study of Eastern Cape Province
- Authors: Xhala, Ncedo Cameron
- Date: 2013
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Government purchasing -- Management
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:9704 , http://hdl.handle.net/10948/d1018640
- Description: The study explored lack of improvement of public procurement management practices in the public sector. The main themes which the study focused on are the following; causes of non-compliance of public procurement and contracts management procedures, factors influencing the selection of appropriate procurement management processes and the main factors for poor implementation of procurement management processes in the public sector. The study aimed to identify the causes of non-compliance; determine factors influencing selection of appropriate procurement management processes, and lastly examine, the main factors leading to poor implementation of monitoring and evaluation in the public sector. The study employed a qualitative design to investigate the problem using the exploratory method. The purposive sampling method was used to select interviewees from three departments, namely, Department of Local government and Traditional Affairs, Public Works and Office of the Premier with 15 participants as a selective sample of the study. The key findings of this study indicate three main problems which are: that lack of properly understood processes of public procurement leads to poor implementation of the system together with alternative strategies of implementing the system. Shortages of skills and lack of training amongst those who get hired within the supply chain management sections or in the procurement management sections of the departments who have little understanding of holistic public procurement management in general affect selection processes. Findings also indicate lack of adequate monitoring and evaluation on procurement management. The study recommends that people who get hired in the procurement management section of these departments should have proper procurement qualifications. Regulations and rules should be made clear to all those who work in the procurement management sections in the public sector, to enable the improvement of best management practices and also to improve public procurement management practices in the public sector.
- Full Text:
- Date Issued: 2013
- Authors: Xhala, Ncedo Cameron
- Date: 2013
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Government purchasing -- Management
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:9704 , http://hdl.handle.net/10948/d1018640
- Description: The study explored lack of improvement of public procurement management practices in the public sector. The main themes which the study focused on are the following; causes of non-compliance of public procurement and contracts management procedures, factors influencing the selection of appropriate procurement management processes and the main factors for poor implementation of procurement management processes in the public sector. The study aimed to identify the causes of non-compliance; determine factors influencing selection of appropriate procurement management processes, and lastly examine, the main factors leading to poor implementation of monitoring and evaluation in the public sector. The study employed a qualitative design to investigate the problem using the exploratory method. The purposive sampling method was used to select interviewees from three departments, namely, Department of Local government and Traditional Affairs, Public Works and Office of the Premier with 15 participants as a selective sample of the study. The key findings of this study indicate three main problems which are: that lack of properly understood processes of public procurement leads to poor implementation of the system together with alternative strategies of implementing the system. Shortages of skills and lack of training amongst those who get hired within the supply chain management sections or in the procurement management sections of the departments who have little understanding of holistic public procurement management in general affect selection processes. Findings also indicate lack of adequate monitoring and evaluation on procurement management. The study recommends that people who get hired in the procurement management section of these departments should have proper procurement qualifications. Regulations and rules should be made clear to all those who work in the procurement management sections in the public sector, to enable the improvement of best management practices and also to improve public procurement management practices in the public sector.
- Full Text:
- Date Issued: 2013
An assessment of information systems supporting procurement reforms in the Eastern Cape provincial government
- Authors: Bosire, Samuel Mobisa
- Date: 2008
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Public finance -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:11620 , http://hdl.handle.net/10353/214 , Government purchasing -- South Africa -- Eastern Cape , Public finance -- South Africa -- Eastern Cape
- Description: As part of the on going financial management reforms, the South African Government introduced the Supply Chain Management (SCM) Framework. Since 2004, The Eastern Cape Provincial Government embarked on a process of ensuring that procurement reforms wrought by the advent of SCM are seamlessly ushered in. Information Technology (IT) and systems are a sine qua non in supporting the implementation of the SCM Framework. However, IT does not operate in a vacuum. Many other factors complement, supplement and influence the objectives sought through the use of Information Technology and systems. It is the confluence of this factors that eventually will determine that success or failure of using technology to support procurement reforms in government. The research investigates the factors affecting the success of the Information systems underlying SCM in the Eastern Cape Provincial government. Data for the research was gathered using a questionnaire administered to all Eastern Cape Provincial Government departments. The research borrows from Heeks’ ITPOSMO model in assessing SCM and Information Systems structures and processes and gauging their state of readiness to embrace procurement reforms envisaged through the SCM Framework. Because of the importance of having a strong IT functional unit in any government department, the study highlights IT issues that typically confront IT managers, especially in the public sector. Heeks’ ITPOSMO model emerges as a sufficient framework for identifying gaps that currently exist between the reality and perceptions on the readiness of IT to adequately support government procurement reforms. The dissertation concludes that the success of the system is dependent not only on the technological component of the system, but also on other factors.
- Full Text:
- Date Issued: 2008
- Authors: Bosire, Samuel Mobisa
- Date: 2008
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Public finance -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:11620 , http://hdl.handle.net/10353/214 , Government purchasing -- South Africa -- Eastern Cape , Public finance -- South Africa -- Eastern Cape
- Description: As part of the on going financial management reforms, the South African Government introduced the Supply Chain Management (SCM) Framework. Since 2004, The Eastern Cape Provincial Government embarked on a process of ensuring that procurement reforms wrought by the advent of SCM are seamlessly ushered in. Information Technology (IT) and systems are a sine qua non in supporting the implementation of the SCM Framework. However, IT does not operate in a vacuum. Many other factors complement, supplement and influence the objectives sought through the use of Information Technology and systems. It is the confluence of this factors that eventually will determine that success or failure of using technology to support procurement reforms in government. The research investigates the factors affecting the success of the Information systems underlying SCM in the Eastern Cape Provincial government. Data for the research was gathered using a questionnaire administered to all Eastern Cape Provincial Government departments. The research borrows from Heeks’ ITPOSMO model in assessing SCM and Information Systems structures and processes and gauging their state of readiness to embrace procurement reforms envisaged through the SCM Framework. Because of the importance of having a strong IT functional unit in any government department, the study highlights IT issues that typically confront IT managers, especially in the public sector. Heeks’ ITPOSMO model emerges as a sufficient framework for identifying gaps that currently exist between the reality and perceptions on the readiness of IT to adequately support government procurement reforms. The dissertation concludes that the success of the system is dependent not only on the technological component of the system, but also on other factors.
- Full Text:
- Date Issued: 2008
An evaluation of the implementation of the preferential procurement policy framework act (No 5 of 2000) with reference to selected municipalities in the province of the Eastern Cape
- Authors: Nano, Nandipha
- Date: 2008
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Government purchasing -- Law and legislation -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:8216 , http://hdl.handle.net/10948/1019 , Government purchasing -- South Africa -- Eastern Cape , Government purchasing -- Law and legislation -- South Africa -- Eastern Cape
- Description: Background and Rationale: South Africa is in its second decade of democracy. Since the introduction of democracy in 1994, the South African government and its citizens are making strides into overhauling the country to make it one of the best habitable countries in the world. All these changes are accompanied by challenges regarding the types of resources required to accomplish this when delivering services to the communities. In order for the government to accomplish this, systems and procedures which are supported by legislation and operational frameworks should be developed, implemented, monitored and reviewed when necessary. Legislation which has been developed to guide and regulate public procurement includes the Preferential Procurement Policy Framework Act (Act 5 of 2000). The previous procurement approaches had various fallacies. For example, there was no accountability, no transparency, no equitable distribution of economic resources and no supporting structures to oversee the process. The government then realised the need for having an integrated approach towards public acquisition of goods and services. The public service should operate in an environment where there will be fair, equitable, transparent, competitive and value for money in procurement. 2 The objective of the Preferential Procurement Policy Act (Act 5 of 2000) is to give effect to section 217(3) of the Constitution of the Republic of South Africa (Act 108 of 1996). Section 217 (3) stipulates that national legislation must prescribe a framework within which the procurement policy may be implemented. Preferential Procurement Policy Framework Act (Act 5 of 2000) aims at redressing the past racial imbalances, where race and gender were used to control productive resources. In order to address the shortfalls of the previous systems which failed to provide equal competition opportunities to all the people of South Africa, the mandate, as stipulated in the amended Section 217 of the Constitution of the Republic of South Africa (Act 108 of 1996), has been implemented. This section calls on government and organs of the state to apply a preference point system to enhance and give preference to the historically disadvantaged individuals or designated groups, who in the past, were victims of unfair discrimination on the basis of race, gender or disability. The Preferential Procurement Policy Framework Act (Act 5 of 2000) and its related regulations and systems emanate from Section 217 (3) of the Constitution of the Republic of South Africa, (Act 108 of 1996). The government has, since 1995, started engaging in a number of initiatives with the purpose of restructuring the procurement. One of the initiatives was the development of the Green Paper on Public Sector Procurement Reform in South Africa in 1997. This paper is a discussion document which contains various proposals aimed at achieving the objectives of good governance, developing and utilising the country’s human resources potential to the full, and encouraging a well-developed and competitive business sector (http://www.info.gov.za/greenpapers/1997/publicproc.htm). 3 Subsequent to the Green Paper on Public Sector Procurement Reform the government published the Preferential Procurement Regulations in 2001, in terms of Section 5 of the Preferential Procurement Policy Framework. The government’s aim was to elicit contributions and discussions from role- players and interested parties. These inputs are crucial in a country that is committed to democracy. It can be deduced that the Preferential Procurement Policy Framework is a tool that is intended to provide direction and guidance to public officials when they engage in the acquisition of goods and services whilst giving leverage and preference to those who have been victims of the past imbalances. There is a perception that business opportunities favour individuals and businesses that are well established and the emerging business owners are marginalised. The reforms in the procurement processes that have been put in place are intended to ensure that there is equality, transparency and accountability in the allocation of business opportunities. Preference has to be afforded to the previously marginalised people to play a role in the public sector procurement and enhance income generation. The aims of the Preferential Procurement will be defeated if there are no systems to control and monitor the engagement of historically disadvantaged individuals. The affirming of such business owners should be viewed as a tool for the distribution of wealth, job creation and a poverty alleviation strategy from the side of government. The rationale for the research, therefore, is to establish whether the historically disadvantaged individuals’ lives are improving and bringing about sustainable economic development in their lives.
- Full Text:
- Date Issued: 2008
- Authors: Nano, Nandipha
- Date: 2008
- Subjects: Government purchasing -- South Africa -- Eastern Cape , Government purchasing -- Law and legislation -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: vital:8216 , http://hdl.handle.net/10948/1019 , Government purchasing -- South Africa -- Eastern Cape , Government purchasing -- Law and legislation -- South Africa -- Eastern Cape
- Description: Background and Rationale: South Africa is in its second decade of democracy. Since the introduction of democracy in 1994, the South African government and its citizens are making strides into overhauling the country to make it one of the best habitable countries in the world. All these changes are accompanied by challenges regarding the types of resources required to accomplish this when delivering services to the communities. In order for the government to accomplish this, systems and procedures which are supported by legislation and operational frameworks should be developed, implemented, monitored and reviewed when necessary. Legislation which has been developed to guide and regulate public procurement includes the Preferential Procurement Policy Framework Act (Act 5 of 2000). The previous procurement approaches had various fallacies. For example, there was no accountability, no transparency, no equitable distribution of economic resources and no supporting structures to oversee the process. The government then realised the need for having an integrated approach towards public acquisition of goods and services. The public service should operate in an environment where there will be fair, equitable, transparent, competitive and value for money in procurement. 2 The objective of the Preferential Procurement Policy Act (Act 5 of 2000) is to give effect to section 217(3) of the Constitution of the Republic of South Africa (Act 108 of 1996). Section 217 (3) stipulates that national legislation must prescribe a framework within which the procurement policy may be implemented. Preferential Procurement Policy Framework Act (Act 5 of 2000) aims at redressing the past racial imbalances, where race and gender were used to control productive resources. In order to address the shortfalls of the previous systems which failed to provide equal competition opportunities to all the people of South Africa, the mandate, as stipulated in the amended Section 217 of the Constitution of the Republic of South Africa (Act 108 of 1996), has been implemented. This section calls on government and organs of the state to apply a preference point system to enhance and give preference to the historically disadvantaged individuals or designated groups, who in the past, were victims of unfair discrimination on the basis of race, gender or disability. The Preferential Procurement Policy Framework Act (Act 5 of 2000) and its related regulations and systems emanate from Section 217 (3) of the Constitution of the Republic of South Africa, (Act 108 of 1996). The government has, since 1995, started engaging in a number of initiatives with the purpose of restructuring the procurement. One of the initiatives was the development of the Green Paper on Public Sector Procurement Reform in South Africa in 1997. This paper is a discussion document which contains various proposals aimed at achieving the objectives of good governance, developing and utilising the country’s human resources potential to the full, and encouraging a well-developed and competitive business sector (http://www.info.gov.za/greenpapers/1997/publicproc.htm). 3 Subsequent to the Green Paper on Public Sector Procurement Reform the government published the Preferential Procurement Regulations in 2001, in terms of Section 5 of the Preferential Procurement Policy Framework. The government’s aim was to elicit contributions and discussions from role- players and interested parties. These inputs are crucial in a country that is committed to democracy. It can be deduced that the Preferential Procurement Policy Framework is a tool that is intended to provide direction and guidance to public officials when they engage in the acquisition of goods and services whilst giving leverage and preference to those who have been victims of the past imbalances. There is a perception that business opportunities favour individuals and businesses that are well established and the emerging business owners are marginalised. The reforms in the procurement processes that have been put in place are intended to ensure that there is equality, transparency and accountability in the allocation of business opportunities. Preference has to be afforded to the previously marginalised people to play a role in the public sector procurement and enhance income generation. The aims of the Preferential Procurement will be defeated if there are no systems to control and monitor the engagement of historically disadvantaged individuals. The affirming of such business owners should be viewed as a tool for the distribution of wealth, job creation and a poverty alleviation strategy from the side of government. The rationale for the research, therefore, is to establish whether the historically disadvantaged individuals’ lives are improving and bringing about sustainable economic development in their lives.
- Full Text:
- Date Issued: 2008
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