Question NW115 to the Minister of Finance
24 August 2020 - NW115
Shaik Emam, Mr AM to ask the Minister of Finance
What measures does he intend to put in place regarding the mass looting that takes place in the Government’s supply chain processes which results in billions that are lost annually?
Reply:
1. The review of the existing procurement regulatory framework through the Public Procurement Bill is a measure that will be put in place to prevent the mass looting that takes place in the Government’s supply chain management processes. The Draft Public Procurement Bill makes the following provisions:
- A directive to all Accounting Officers and Accounting Authorities on what measures to put in place within their respective institutions to prevent the abuse of the supply chain management system;
- A chapter on procurement integrity which outlines code of conduct for officials, bidders and suppliers, including measures for handling any contravention of the code of conduct; and
- That institutions must ensure that all planned procurement is aligned to the institution’s budget and plan.
2. The National Treasury, furthermore, proposed to the DPSA, the following Key Government Focus Areas (KGFA) and Key Focus Area Activities (KFAA) to be included in the Performance Agreements of Head of Departments:
Key government focus areas: Supply Chain Management System
|
KGFA |
KFAA[1] |
Suggested Weight |
Target Date |
Indicator/Target |
Baseline Data |
|
Develop and implement effective and efficient supply chain management system |
Elimination of wasteful and fruitless expenditure |
20% |
Annual |
70% elimination of wasteful and fruitless expenditure from baseline 2019 [2] |
2018 Baseline |
|
Reduction of irregular expenditure |
20% |
Annual |
65% reduction of irregular expenditure from baseline 2019[3] |
2018 Baseline |
|
|
Reduction of qualified audits |
20% |
Annual |
Unqualified audit opinion with 25% fewer findings than 2019/20[4] |
2018 Baseline |
|
|
Ensure that procurement planning is managed |
15% |
Annual |
The finalisation of tender awards within an average of 100 days |
Average number of days to award tenders |
|
|
Ensure that SCM risk management is performed |
5% |
Annual |
Risk response plans for the top 5 SCM risks developed |
Risk response mitigation plans |
|
|
Ensure that the department pays all compliant supplier invoices within 30 days of receipt of invoice |
20% |
Annual |
100% of compliant supplier invoices paid within 30 days of receipt of invoice |
Average supplier payment days |