Question NW3174 to the Minister of Trade and Industry
30 October 2017 - NW3174
Matiase, Mr NS to ask the Minister of Trade and Industry
(1)What are the details including the ranks of service providers and/or contractors from which (a) his department and (b) the entities reporting to him procured services in the past five years;(2) what (a) service was provided by each service provider and/or contractor and (b) amount was each service provider and/or contractor paid; (3) (a) how many of these service providers are black-owned entities, (b) what contract was each of the black-owned service providers awarded and (c) how much was each black-owned service provider paid? NW3498E
Reply:
(1) (a) (2) (a) (b) (3) (a) (b) (c)
The department and its group of entities procured a variety of goods and services over the past 5 years, ranging from leasing accommodation, consultant services, travel and transport, ICT related goods and services etc. The quantum of these individual transactions run into the thousands on an annual basis, for example the department alone processed an approximate 6,805 transactions during the last 12 months. The same can be said for the entities.
Goods and services are classified in accordance with its SCOA classification or on the nature of the goods and services procured. This information is reported in the Statement of Financial Performance in the Annual Financial Statements of the department and the entities.
Goods and services are procured using the Preferential Procurement Policy Framework Act and Regulations. The Regulations prescribe the preference points that can be claimed in accordance with the BEE status level of the supplier. This approach is a scorecard approach rather than purely an ownership approach.
Prior to 1 April 2016, goods and services were procured from suppliers registered on the departments own supplier database. With effect from 1 April 2016, National Treasury has implemented the Central Supplier Database (CSD) that has made it compulsory for government entities to use only suppliers registered on this database. The CSD maintains data on expenditure categories and supplier information.