Question NW367 to the Minister of Finance

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05 April 2016 - NW367

Profile picture: Chance, Mr R

Chance, Mr R to ask the Minister of Finance

With reference to President Jacob G Zuma’s undertaking in his State of the Nation Address delivered on 12 February 2015, that the Government will set aside 30% of appropriate categories of state procurement for purchasing from Small, Medium and Micro-sized Enterprises (SMMEs), co-operatives, as well as township and rural enterprises, what percentage of the total procurement of (a) the National Treasury and (b) every entity reporting to him went to (i) SMMEs and (ii) co-operatives from 1 April 2015 up to the latest specified date for which information is available?

Reply:

NATIONAL TREASURY

(a) (i) 17%

(a) (ii) N/A.

ACCOUNTING STANDARDS BOARD

(b) (i) 85%

(b) (ii) 0%

CO-OPERATIVE BANKS DEVELOPMENT AGENCY

The Co-operative Banks Development Agency has utilised the National Treasury (NT) supply chain management unit (SCM) in relation to all its procurement matters due to not having sufficient resources to carry out this function independently.

DEVELOPMENT BANK OF SOUTHERN AFRICA

(i) The Development Bank of South Africa tracks data in line with the BEE scorecard and certificates. Hence, data is available pertaining to Black Owned, Black Women Owned; EME and QSE.

This analysis is based on spend data from 1 April 2015 to 24 February 2016.

Classification

Value

%

Total Spend

R 169,962,314

100%

 

EME Spend

R 16,828,529

10%

QSE Spend

R 17,331,976

10%

(ii) The Bank does not record details pertaining to co-operatives.

FINANCIAL INTELLIGENCE CENTRE

(b) (i) 9.72%

(b) (ii) 0%

 

FINANCIAL SERVICES BOARD

During the period 1 April 2015 to 31 December 2015 the Financial Services Board has disbursed approximately 20% to SMMEs for goods / services procured.

GOVERNMENT EMPLOYEES PENSION FUND

(b) (i) 36%

(b) (ii) 0%

 

GOVERNMENT PENSIONS ADMINISTRATIVE AGENCY

(b) (i) 10.63%

(b) (ii) 0%

INDIPENDENT REGULATORY BOARD FOR AUDITORS

(b) (i) 6.7%

(b) (ii) 0%

PENSION FUNDS ADJUDICATOR

(b) (i) 17.3%

(b) (ii) 0%

LAND BANK

(b) (i) 100%

(b) (ii) 0%

OFFICE OF THE OMBUD FOR FINANCIAL SERVICES PROVIDERS

(b) (i) 35%

(b) (ii) 0%

PUBLIC INVESTMENT CORPORATION

(b) (i) 21%

(b) (ii) 0%

SOUTH AFRICAN AIRWAYS

(b) (i) 2.29%

(b) (ii) 0%

SOUTH AFRICAN REVENUE SERVICES

(b) (i) 12%

(b) (ii) 0%

SASRIA

(b) (i) 6.93%

(b) (ii) 0%

TAX OMBUD

The Office of the Tax Ombud was established in terms of the Tax Administration Act 28 of 2011 and reports to the Minister of Finance. In terms of the section 15(4) of this Act the expenditure connected with the functions of the Tax Ombud is paid out of the funds of SARS. For this reason all procurement for this office follows SARS’ procurement procedure through SARS’s procurement structures.

The amount spent in the designated categories will vary among entities depending on the services and goods procured. However, I will direct each entity to more actively promote the role of SMMEs and Co-operatives in the procurement process.

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