Joint press release by The Chartered Institute of Purchasing & Supply and the State Owned Enterprise Procurement forum on Finance Minister Pravin Gordan's announcement on Tuesday, 31 May 2011.
Finance Minister Pravin Gordhan’s announcement on Tuesday, 31 May 2011, that Treasury will develop a mechanism to monitor tender processes confirms governments commitment to eroding tender irregularities.
One of the key strategic government initiatives, Programme 5: Financial Accounting and Reporting, is National Treasury’s programme of reforming supply chain and enforcing compliance within government and seeks to counter fraud and corruption.
Government is moving in the right direction with trying to prevent tender fraud and CIPS, as the recognised professional body for supply chain management for National Treasury, is eager to see when these steps will start effectively combating fraud and corruption.
CIPS (Chartered Institute of Purchasing and Supply) is an international organisation, operating in over 150 countries worldwide. CIPS Southern Africa is acting as a conduit for the benchmark of good practice within the Southern Africa region; and in doing so, building a stronger understanding of the role and value of procurement.
CIPS has been working closely with the State Owned Enterprise Procurement Forum (SOEPF) since July 2010 to develop procurement and supply chain personnel.
Mr. Fantas Mobu, Chairperson of SOEPF (and Eskom GM: Tactical Procurement) states: Aristotle once said Excellence is not an act but a habit. This pedigree can be achieved by focusing on the most important part of training which is the right training.
Every single day Procurement practitioners put their lives in the front line to make sure that there is running water, electricity, roads, airports and many more, yet there is perpetual negative scrutiny. SOEPF was established in 2004 as a voluntary forum of procurement and supply chain management heads of the State Owned Enterprises to enable sharing of best practice in supply chain management within SOEs to drive excellence, for an example to this end under the leadership of SARS Procurement, SOEs are collaborating together in a project that will see the vetting of all SOE suppliers and ensuring that the state does not enter into a relationship / contract with companies and directors that are involved in fraud and corruption.
Key strategic objectives of SOEPF include promoting adherence to the prevention of the Corrupt Activities Act as well as to advise SOEs on procurement policies and procedures and the sharing of best practices in procurement.
SOEPF recognises that one of the key challenges in South Africa within government and SOEs remains the lack of a sufficiently skilled and capable workforce, especially within the procurement and supply chain management environment. SOEPF together with CIPS are working together to ensure that procurement and supply chain officials working in any state entity will be licensed to practice and will sign and abide by the code of ethics governed by CIPS.
“The procurement profession is currently under the spotlight and professional procurement needs to deliver more than just cost savings, it needs to ensure stronger governance, greater sustainability, increased security of supply and increased value. This would not be possible without a skilled and qualified workforce or in other words - a licence to practise.” Mr. André Coetzee, MD of CIPS Southern Africa commented.