Africa's Public Procurement & Entrepreneurship Research Initiative – APPERI


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South African government aims to buy three quarters of goods and services locally


18 June 2014 | Gurjit Degun

The South African government is to promote local procurement by buying 75 per cent of goods and services from producers in the country.

Speaking at the joint sitting of parliament in Cape Town for his state of the nation address, South Africa’s president Jacob Zuma also said the government wants to increase domestic production.

He also plans to address weaknesses in procurement, management and operations systems “that undermine the efficiency and effectiveness of government.” Zuma said this will be done by centralising procurement under the Office of the Chief Procurement Officer in the National Treasury, which is already under way.

“We have begun piloting this new approach with the centralised procurement of school furniture in the Eastern Cape,” he said. “The furniture will be delivered in all Eastern Cape schools by the middle of August 2014.

“Measures will be introduced to prevent public servants and public representatives from doing business with the state.

“These will be supported by improved implementation of the Financial Disclosure Framework, strengthened protection of whistle-blowers, and the provision of technical assistance to departments for the effective management of discipline.”

Zuma also said the government needs to come up with “innovative” ways to “fast-track procurement and delivery by government in the energy sector.”

The Big Interview: ‘My fight is about principles, not leases’

Xolani Mbanjwa
Roux Shabangu, the billionaire property developer at the centre of the R1.7bn leases saga that led to Public Works Minister Gwen Mahlangu-Nkabinde being fired and police commissioner Gen Bheki Cele suspended, believes that he has been treated unfairly.Shabangu, who has been hogging the headlines since he clinched the controversial lease contract from the Department of Public Works that have since been deemed “unlawful” by public protector Thuli Madonsela, is unhappy about the findings.He made this clear in an interview during which his wife, Percy, a law student, sat alongside him at his plush offices in Irene, Pretoria. Shabangu only has a matric.Shabangu bitterly complains how being black has unfairly thrust him into the spotlight and accuses white property developers – and his former business partner – of working with the media to tarnish his name.

His business portfolio boasts a string of shopping centres, mines in South Africa and Swaziland, properties, boats and vehicles. Shabangu scoffed at allegations that he clinched the lucrative lease contract for the new police headquarters in Pretoria only because of his political and business connections.

“People think I’ve got money because Zuma is the president. It’s rubbish. Why didn’t I need Thabo Mbeki when I was building Jabulani Mall (in Soweto) and other developments?

“Why would I rely on connections now? I’ve always had connections. I don’t have unique ones now. I know the same people I knew back then,” said the 37-year-old father of four.

The former amateur boxer said the success he’s achieved “especially at my age should be celebrated, but you can see that some people are aggrieved about my business”.

“Zuma is 69, I’ve just turned 37,” Shabangu said, introducing a new conversation while sidestepping the question about inflated leases he signed with government.

He confidently declared that his legal team would clear his name and successfully defend Mahlangu-Nkabinde’s bid to get the Sanlam-Middestad building lease nullified by the Pretoria High CourtRead more.

South Africa: Listed pharmaceutical firms welcome BEE rules for state tenders

Business report

June 15 2011 at 06:02am

By Slindile Khanyile

Listed drug firms will soon benefit if they are empowered when bidding for state tenders.

This is because health-care procurement has been aligned to all the elements of broad-based black economic empowerment (BEE) following the publication of regulations of the Preferential Procurement Policy Framework Act by the National Treasury last week.

Previously, these companies’ empowerment credentials did not matter because procurement was linked only to equity, which is one element of the BEE scorecard.

While these public firms have empowerment shareholders, the government did not consider these as it was felt that shareholding changed hands regularly on the stock exchange.

But the regulations that are expected to come into effect by December say the points scored by a tenderer in respect of BEE contribution must be added to the points scored for price.

Bidding firms will have to submit their broad-based BEE status level verification certificate or a certified copy thereof, substantiating their rating, except for those that are exempted. In the event that two or more tenders have scored equal total points, the successful tender must be the one scoring the highest number of preference pointsRead more.

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