Public procurement fulfils an important role in the economy and public expenditure of a country and can be regarded as a critical indicator of the effectiveness of a government, because it is a central aspect of public service delivery. Notwithstanding various reforms made to date to public sector procurement in South Africa and the application of Supply Chain Management as a strategic policy strategic instrument, the South African public procurement system still faces several challenges and has been strongly criticised. This paper aims to understand the current public procurement environment in South Africa, its dilemmas and challenges, and to propose that public procurement be refocused towards a strategically placed business process, implemented by well-trained and competent procurement officials. The purpose is to provide a theoretical foundation as well as practical guidance regarding the role of public procurement in the South African public sector. The methodology involved an intensive literature study and document analysis to evaluate various official policy documents and official publications to determine the status of South African public procurement. The study found that the majority of challenges faced by public procurement in South Africa can probably be attributed to the implementation of the system, rather than to the system itself. In the shorter and longer term, the public procurement system in South Africa will have no choice but to emerge as a stronger, more resilient, streamlined and efficient provider of goods and services for the greater good of all.
When considering sustainability from a socioeconomic and environmental point, the South African public transport industry was not an integral part of such planning until the last decade. Various well-intended and well-defined public procurement and environmental regulatory policies and instruments were put in place over the years, however, they appear to be failing in achieving the goals of local job creation and alleviation of unemployment. This exploratory literature review study of various public documents, regulatory instruments, and review reports aims to evaluate current knowledge pertaining to the current level of sustainable transport from a life-cycle approach, in support of overall sustainable goals in South Africa. The research set out to assess the status of public procurement in the revitalising of public rail freight transport towards identifying areas of excellence that could be used to address under-performance in other areas. The documentary analysis found various areas where the public procurement policies within South Africa, which aims to promote local participation, are facing difficulties due to lack of access to modern technology as well as inadequate skills levels to be able to partake in the ventures. In exploring South African challenges and current solutions, the article recommends a holistic and integrated approach to provide for a sustained manufacturing and service supply stream within the local railway transport environment.
Corruption is a broad concept involving various acts perceived to be illegal or unethical at the very least. Corruption is informally defined as any act which unfairly or illegally influenced a decision-making process, through giving or receiving of a benefit (monetary or otherwise) to the decision-maker or another party connected to the decision-maker. South Africa (SA) is known for its well-developed framework to promote sound public administration, consisting of the Constitution, supportive legislative instruments including the Public Finance Management Act, Municipal Finance Management Act and various National Treasury Regulations and Notices. Sadly, SA is also known for high levels of fraud, corruption and collusion amongst public officials with apparently very little consequence management to date. Corporate governance was institutionalised in South Africa (SA) through the four King Reports, which have since 1994 served as cornerstones with a Code of Good Practices and Conduct to promote ethical standards and curbing corruption in corporate governance. The article aims to draw conclusions from an in-depth comparative qualitative literature review of national legislative documents, reports and recent articles to determine the extent of corruption and how effective the current SA Public sector corporate governance framework measures at local government level are implemented.
Various studies have reported a positive connection between the public procurement and economic performance of a country, in terms of value for money, enhanced human welfare and improved economic growth. According to the World Bank, a distinction can be made between accountable governments where public procurement’s share of the GDP is over fourteen percent, medium accountability countries with a share of thirteen percent and low accountability countries with less than twelve percent. In response to the ever-increasing complexity of procurement, many disruptive innovations as well as rapid developments in digitalization are reforming global supply chains. The principles of a sound procurement system include accountability, competitive supply, and consistency, which when viewed together with ethics and good governance, become the corners stones of an effective, efficient, transparent, and reliable procurement system. Ethical risks are possible in every stage of the procurement process; however, e-procurement has become a powerful tool to curb fraud, corruption, and unethical behaviour in public procurement as it reinforces the ethics of transparency, accountability, and integrity in procurement functions. With e-procurement being a relatively new form of procuring goods and services, it has been up against several challenges, notwithstanding the proven benefits of using electronic means in procurement. The movement to e-procurement has been a slow process globally, but various countries such as Germany, Korea, Brazil, and Zambia have already started to reap the fruits of their efforts. The main benefit of introducing e-procurement recorded by the World Bank has been a marked upturn in transparency and competition. This chapter aims to unpack the link between technology, procurement, and ethics towards the provision of goods and services by governments for the greater good of all.
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