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Other Articles from The Villager

Will the new tender board constitution bring a change?

Tue, 2 April 2013 04:35
by Business Writer

Complaints that the current set up of the State procurement board are liable to manipulation by a few individuals will soon be a thing of the past.
This is because the country could soon have a new Tender Act which will overhaul the current set up.
In the meantime, all the permanent secretaries sit in the State procurement board and the permanent secretary of the Ministry of Finance chairs the vital board.
However, a perusal of the proposed new structure of the Tender Act draft shows that in future Government might have to engage industry experts in certain tenders where expertise are scarce.
This will see the experts coming from the private sector sitting in decision-making process for tenders and in some cases could even contribute to the decisions.
Tender exemptions will only be given when deemed necessary.
The current situation is that Government institutions and ministries apply for exemptions without considering the detrimental effects to the economy.
However, what remains to be seen is whether the newly-proposed set-up where service chiefs will play their part in tenders that are deemed to be security risk and also private players being brought in will work.
The South African state procurement board has the same set up where private sector plays a bigger role but the issue of corruption is still high.
More often than not in SA, high profile figures are linked to massive tender fraud where they benefit with their cronies while deserving companies fail to get opportunities.
What would be the most difficult thing for the Government going forward is to make sure the proposed procurement system will benefit locals and deserving companies.
Government also needs to create unquestionable transparency when dealing with multinationals that have a tendency of paying kick-backs in the name of commissions to gain access to public tenders.