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Supply Chain Management – turning professional?


The Guardian

The trend for professionalising supply chain management in the private sector is slowly reaching the public sector in Africa but still rarely appears anywhere near the top of development agendas.

The trend for professionalising supply chain management in the private sector is slowly reaching the public sector in Africa but still rarely appears anywhere near the top of development agendas. This despite the fact that, in many developing countries, public procurement accounts for over 50% of GDP, or considerably more where the private sector is small.

Historically, procurement and supply chain management have been undervalued and viewed as a process rather than a professional function. With the realisation that effective supply chain management plays a critical role in ensuring funds are well used, value for money in the delivery of basic services is achieved, and transparency and accountability is assured, the value of professional supply chain management needs to be recognised. How will this happen in countries where procurement is viewed as an “add-on” to other careers?

The wave of legal and institutional reforms to public procurement across Africa over the past few years has certainly focused attention more firmly on the question of capacity building. Many universities are subsequently providing pre-service training in supply chain management which is beginning to instil an early appreciation of the value of the function.

In the health sector, where the issues are more acute, major programmes to combat diseases such as HIV/AIDS and tuberculosis have highlighted the importance of strong procurement and supply chain due to the critical need for regular access to medical supplies. The World Health Organization identifies equitable access to medical products, vaccines and other technologies as one of the six building blocks to a well-functioning health system. The traditional approach to provide expensive in-service supply chain management training to doctors and pharmacists so that they can add this on to their day job is slowly changing but more needs to be done to raise the profile of supply chain management in health institutions.

This trend towards institutional reform in the public procurement sector is not focused solely on health. Procurement training is increasingly available at all levels, from basic introductions to new procurement procedures to academic courses run by universities. Crown Agents has worked with the governments of several African countries to ensure that their procurement capacity building strategies are delivered. Our long expertise in supply chain management and procurement reform and our ability to understand the local environment enable us to work with procurement authorities across Africa. In Ghana for example we helped to develop a whole programme of professional development that covered short, medium and long-term requirements. We partnered with the Institute of Management and Public Administration to implement the short-term plan which was based on training an estimated 25,000 people including procurement staff, tender committees, the private sector and oversight institutions addressing the cross-cutting nature of procurement. We also teamed up with tertiary education institutions to develop the medium and long term training which included a bachelors level degree course in procurement.

Professionalisation is not just about training; it is about transforming the view of the profession itself to ensure a local supply of qualified new recruits in the future. Securing professional accreditation validates and upholds the importance of the supply chain management role. In Botswana for example the Public Procurement and Asset Disposal Board is seeking accreditation of its training materials both nationally and internationally after Crown Agents helped it to develop a series of procurement training modules and completed a training-the-trainers course prior to building capacity in its procuring entities.
Many countries are even establishing their own national professional bodies as membership of international professional institutions such as UK Chartered Institute of Purchasing and Supply and Chartered Institute of Logistics and Transport expands significantly in Africa.
In the health sector there are also a number of initiatives that support the strategic role of supply chain managers. Crown Agents has provided technical support and is an active stakeholder in ‘The People That Deliver’ initiative which promotes workforce excellence in supply chain management.
Building supply chain competence and promoting and valuing supply chain management as a professional career can make a positive impact on a country’s economic development and its people’s lives.

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Nigeria: TCN Contract Cancellation, Yet Another Setback?


AllAfrica.com

BY YUNUS ABDULHAMID

November 15, 2012

The hiring of Canadian firm, Manitoba Hydro, to manage the Transmission Company of Nigeria (TCN) took the Bureau of Public Enterprises (BPE) five years and enormous resources to conclude. It was seen by industry watchers as a major step forward for the power reform process. The cancellation of the contract by President Goodluck Jonathan could well be a major blow to the reforms.

Managing Director of Manitoba Hydro International in Nigeria Mr. Don Priestman yesterday expressed shock over the reported cancellation of its management contract to run the Transmission Company of Nigeria (TCN) for a period of three years.

He said his company was yet to get any official correspondence terminating the contract has been but they only learnt of the development on the pages of newspapers.

In a telephone interview, Mr. Priestman said: “I haven’t really received any formal notification yet. All I know is from the newspapers. So, we are also surprised and disappointed. We don’t understand the reason behind it but we are just waiting to receive a formal notification. I was hoping that sense would prevail and that it was just a question of time. We were willing to give time for the right decision to be made so we could get out of it.”

TCN is one of the successor companies created from the unbundling of the Power Holding Company of Nigeria (PHCN). It combines the functions of a transmission services provider, a system operator and a market operator, all of which are central to the sustainability and development of the electricity sector.

Priestman said his next step was to, “wait for instruction from my head office.”

Nigeria is Africa’s most populous nation of more than 160 million and holds the world’s ninth-largest gas reserves but is blighted by power cuts which last several hours a day, forcing businesses and individuals who can afford them to rely on diesel generators.

The Federal Government is in the middle of privatizing the bulk of its power plants and distributing networks, in a reform process supposed to give foreign investors the confidence to provide the estimated $10 billion-a-year the electricity sector needs.

It all started with the ‘forced’ exit of Prof Barth Nnaji as power minister in August who investors and development partners said inspired confidence to invest.

Recently, the announcement of companies linked with controversial political money bags as preferred bidders for the unbundled units of the PHCN attracted hue and cry from stakeholders who expressed fear that they were being sold to government cronies.

An indication that all was not well with the TCN contract came to light on November 2, 2012 when Don Priestman spoke with newsmen at the West Africa Power Pool (WAPP) conference in Abuja, where he had raised alarm that two months after the contract was billed to commence, his firm was still waiting to get the ‘delegated authority’ from the federal government to start work as provided by the contract’s terms.

Priestman had said: “The first month, August, was a transition month and according to the contract, starting the 1st of September, the schedule of delegated authority should have been issued, which would have given us full authority for running TCN. That has not happened. It’s unfortunate. I think you will have to ask the authority why not.

“We are ready and keen to proceed, we have the people here, we know what to do, we have done something similar in other countries with success. So we hope there won’t be much more delay before we can start doing what we came here to do. It’s difficult to do a job when you are not in charge. Right now we are working closely and we are observing, we are making suggestions but we are not in control.”

At the same event, however, the Permanent Secretary in the Ministry of Power, Mrs. Dere Awosika, who represented the Minister of Power, contradicted Priestman’s position.

She told newsmen when asked to clarify Priestman’s position: “Why do you think they are in this meeting? They are already working.”

When further asked if Manitoba was being incorrect and whether the schedule of authority was already in place, she said: “Am not saying so. You want us to just throw out the issue without smoothening ends.”

News, however, broke out on Tuesday night that President Goodluck Jonathan had cancelled the transaction. Reuters quoted Presidential spokesman Rueben Abati as confirming the cancellation of the transaction by President Goodluck Jonathan with immediate effect.

He was quoted as saying the power ministry would issue a statement as to why the deal was cancelled but till press time last night, the ministry had not.

The ministry’s spokesman, Mr Greyne Anosike, told Daily Trust on phone that a statement would be issued after full briefing.

The BPE kept tight lips last night when asked to comment. Its spokesman, Chukuma Nwokoh, said ‘no comment’ when asked the bureau’s reaction to the cancellation of the contract which took it five years to complete.

In September, when Manitoba was to resume as management contractors at the TCN head office in Abuja, PHCN workers stoutly resisted the move. They alleged their jobs were at risk given that the Federal Government had not finalized retirement and disengagement terms with them.

However, then minister of power, Prof Barth Nnaji, said Manitoba would bring only eight staff while existing indigenous staff would be in the shadow as deputies.

He said: “They (Manitoba) are not going to get rid of TCN workers but they will bring in a few people to work with the TCN people and more importantly, they will bring their expertise. They will bring in speed; be able to anticipate issues and problems and address them proactively. This is what we don’t have in the public service.”

The road to the appointment of Manitoba Hydro International of Canada has been long and tortuous. The process started five years ago by the Bureau of Public Enterprises (BPE) during the administration of President Olusegun Obasanjo in 2007.

Manitoba Hydro International won the bid to manage the TCN through a bidding process and consequently signed the $23.7 million management contract with the bureau last July. The Power Grid of India lost out in the bidding contest.

The process was stalled during the administration of late President Umaru Yar’Adua, who rolled back the power sector reform and privatisation programme.

However, when Jonathan took over in 2010 and launched the Power Sector Road Map that same year, the Federal Government directed the BPE to continue with the process from where it had been stopped, rather than re-advertising for prospective companies to express interest all over.

Reports suggested that the president’s decision to cancel the contract was based on a memo sent by the Bureau of Public Procurement (BPP), which for several weeks, had been pushing for its cancellation on the premise that it did not pass through due process as provided under the Public Procurement Act.

Director General of the BPP Emeka Eze was said to have kicked against the appointment of Manitoba because a few material irregularities had been noticed in the process that led to the company’s selection.

Eze was said to have informed the president through the memo that a management contract was distinct from a privatisation transaction or concession, and since the procurement of all Federal Government contracts, including those covering professional services are covered by the Public Procurement Act, the BPE should not have superintended the selection process.

Eze was also said to have insisted that if the BPP had overseen the procurement of the contractor, it is the Federal Executive Council (FEC) that should have approved the selection of Manitoba based on the bureau’s recommendation.

The president has reportedly directed the Ministry of Power to handle the selection of a new contractor for TCN within 30 days.

 

South Africa: Gordhan’s war on incompetence and impunity


Mail & Guardian

By Faranaaz Parker

July 24, 2012

Finance Minister Pravin Gordhan has revealed plans for the national treasury to take a much tighter grip on local governments‘ finances. See the full report here.

Following the release of a damning report on the scale of mismanagement at municipal levels, Finance Minister Pravin Gordhan on Monday revealed that the national treasury would take a tighter grip on procurement processes across the country.

Gordhan announced that treasury would create a procurement oversight unit to actively enforce supply chain management at a national level and would shortly appoint a chief procurement officer. The position would be advertised in two weeks and would be established within the next two months.

“Where there are transactions for a particular size or type within the national domain there must be the ability to assess whether they meet market criteria in terms of prices [and] whether proper processes havebeen followed,” he said.

The announcement was an indictment of local government’s failure to spend and account for public money effectively.

The minister was speaking at the release of auditor general Terence Nombembe’s report on local government audit results, which showed that only 5% of all municipal entities – a total of 13 – had achieved clean audits for the year 2010/2011.

Gordhan said IT systems would be developed to allow the treasury to actively monitor compliance with financial management requirements so that it may demand information regarding procurements, such as how decisions were made and by whom.

Spending fiascos

The move may help prevent public spending fiascos such as the multibillion-rand leasing scandal that saw former police chief Bheki Cele and former public works minister Gwen Mahlangu-Nkabinde sacked last year.

Gordhan said the government should be able to demonstrate that there were consequences for nonperformance and for working outside the law.

“At the moment, those consequences are not there. When consequences are not there continuously then a level of impunity develops,” he said.

He said the new oversight mechanism would require the help of law enforcement agencies, who would bear the responsibility of preparing cases against and prosecuting those guilty of corruption.

With reference to the auditor general’s report, Gordhan said he was particularly disappointed that some large metros, which had better skills and capacity than small municipalities, did not received clean audits.

“If they can’t meet simple criteria in financial management, then it’s a matter the treasury has to take a closer look at,” he said.

Nombembe’s damning report
Nombembe’s report showed there were three root causes behind the slow progress towards clean audits in local government.

The biggest problem, he said, was a general lack of consequence for poor performance. Modified audit results were simply considered the norm, he said.

In addition, over 70% of those audited did not have the minimum competencies and skills required to perform their jobs.

Worryingly, over half of the municipalities audited were slow in responding to the auditor general’s suggestions and were not taking ownership of key financial controls.

Nombembe said if these issues were not addressed, they would continue to weaken governance.

He also complained that most municipalities employed consultants in areas where they already had people to do the work, and even then the results were not as good as they should be.

Cedric Frolick, National Assembly house chairperson, agreed, saying: “What are the employees doing when 70% of the work is being done by people who must be paid for it on top of their salaries?”

“Why are people who are not doing their job, being allowed to keep on [not] doing it?”

Meeting the criteria
But Minister in the Presidency responsible for performance, monitoring and evaluation Collins Chabane said because of the way the three spheres of government were structured, it was difficult to make interventions in local government unless specific criteria had been met.

“It creates a complication where no other authority can intervene, by law, until that municipality makes a decision,” he said.

Chabane said in future, the performance of departments and institutions may be linked to the performance of the heads of those institutions.

“That will begin to bring accountability,” he said.

Meanwhile Subesh Pillay, chairperson of the South African Local Government Association, said it was important to remember that clean audits were a means to an end.

“That end is to ensure that local government become efficient and effective organs of service delivery,” he said.

S. African telecom firm helped Iran evade US sanctions, documents show


By Steve Stecklow  Reuters
August 30, 2012, 8:11 pm

Rogan Ward / Reuters  A shopkeeper awaits customers in a shop advertising MTN airtime sales in Umlazi township in Durban, South Africa.

LONDON — A South African telecom giant plotted to procure embargoed U.S. technology products for an Iranian subsidiary through outside vendors to circumvent American sanctions on the Islamic Republic, according to internal documents seen by Reuters.

The fresh revelations about MTN Group, buttressed by interviews with people familiar with the procurement, come as the South African multinational faces fights on several fronts over its lucrative but controversial Iranian venture, a fast-growing telecom.

MTN is in talks with the U.S. Treasury in an effort to win permission to repatriate millions of dollars of profit now bottled up in Iran by American sanctions on the Iranian financial system. MTN’s chief executive disclosed the talks with U.S. officials this month, saying, “U.S. sanctions should not have unintended consequences for non-U.S. companies.” An elite South African police unit is investigating how MTN obtained the Iranian telecom’s license, following corruption allegations made by a Turkish rival in a U.S. federal lawsuit.

Johannesburg-based MTN Group is Africa’s largest telecom carrier, with operations in more than 20 countries. It owns 49 percent of MTN Irancell, a joint venture with a consortium controlled by the Iranian government. The South African company provided the initial funding for the venture and oversaw the telecom’s launch in 2006.

Hundreds of pages of internal documents reviewed by Reuters show that MTN employees created presentations for meetings and wrote reports that openly discussed circumventing U.S. sanctions to source American tech equipment for MTN Irancell. The documents also address the potential consequences of getting caught. The sanctions are intended to curb Iran’s nuclear program, which Tehran maintains is peaceful.

The equipment included products from Sun Microsystems Inc, Oracle Corp, International Business Machines Corp, EMC Corp, Hewlett Packard Co and Cisco Systems Inc, and was used to provide such services as wiretapping, voice mail and text messaging, the documents show.

In a statement, MTN denied any wrongdoing. The U.S. companies have said they were not aware MTN Irancell had acquired their products, and several are investigating the matter. U.S. Treasury officials declined to comment.

‘It all showed up’ Reuters first reported in June that MTN Irancell had procured U.S. equipment through a network of tech companies in Iran and the Middle East. The article quoted Chris Kilowan, MTN’s top executive in Iran from 2004 to 2007, saying that the South African company was directly involved in obtaining U.S. parts for the Iranian telecom.

The new documents provide a much deeper understanding of the extent of MTN’s procurement of embargoed U.S. goods, exposing new links in the supply chain of products worth millions of dollars. They also give a rare inside look at the thinking of a multinational doing business in Iran and the difficult choices involved. The documents show that MTN was well aware of the U.S. sanctions, wrestled with how to deal with them and ultimately decided to circumvent them by relying on Middle Eastern firms inside and outside Iran.

MTN was not alone. In recent months, new evidence has emerged that other foreign companies, including Britain’s Standard Chartered bank and China’s ZTE Corp, have helped Iran undermine increasingly tougher sanctions. The bank, which agreed to pay $340 million to New York’s bank regulator to settle allegations it hid transactions with Iran, still faces a separate U.S. probe. ZTE is the subject of investigations by the Federal Bureau of Investigation and the Commerce Department after Reuters reported it had supplied U.S. equipment to Iran’s largest telecom.

The new MTN documents appear to detail an intentional effort to evade sanctions. For example, a January 2006 PowerPoint presentation prepared for the project steering committee — comprised of then top-level MTN executives — includes a slide titled “Measures adopted to comply with/bypass US embargoes.” It discussed how the company had decided to outsource Irancell’s data center after receiving legal advice.

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“In the absence of applicable U.S. consents, it is a less risky route to MTN for Irancell to outsource data centre than it is to purchase restricted products,” the PowerPoint slide says.

The documents also include a lengthy spreadsheet of “3rd Party” equipment dated June 2006 that lists hundreds of U.S. components — including servers, routers, storage devices and software — required for a variety of systems.

A delivery schedule also dated June 2006 lists U.S. equipment needed for “value-added services,” including voice mail and a wiretapping system. The schedule states that the equipment would be “Ready to Ship Dubai” that July and August. It estimates it would take two weeks to arrive in the southern Iranian port of Bandar Abbas by “Air or Sea/Road,” and then up to 30 days to clear Iranian customs.

According to a person familiar with the matter, the equipment ultimately arrived by boat. “It all showed up,” this person said.

‘Outstanding issues’ Reuters reported in June that a Kuwait-based telecom-service provider called Shabakkat was used to procure some U.S. equipment for MTN Irancell. Shabakkat’s former country manager in Iran said the products were purchased from a local Iranian company.

But the person familiar with the matter said Shabakkat also sourced U.S. products from a distributor in Dubai called Exit40. The distributor no longer operates.

A Shabakkat executive in Kuwait did not respond to requests for comment. Two former top executives of Exit40 could not be reached for comment.

The documents suggest procuring the U.S. parts often wasn’t easy, and the process was plagued by delays. For example, a “High Level Weekly Report” in November 2006 discusses problems sourcing Sun hardware.

“Urgent decision required to source SUN machines through local supplier,” it states. A note in red at the bottom of another PowerPoint slide says: “According to Shabakkat, all SUN HW is at Dubai waiting for Payment.” HW stands for hardware.

The following month, a spreadsheet detailing “Outstanding issues” cites delays in deploying a system called USSD that enables interactive services. “The USSD platform is completely built on SUN hardware – hence until the SUN hardware is delivered by Shabakkat USSD implementation will be delayed,” the spreadsheet says.

Paul Norman, MTN Group’s chief human resources and corporate affairs officer, said in a statement to Reuters: “MTN denies that it has ever conspired with suppliers to evade applicable U.S. sanctions on Iran or had a policy to do so. MTN works with reputable international suppliers. Our equipment is purchased from turnkey vendors and all our vendors are required to comply with U.S. and E.U. sanctions. We have checked vendor compliance procedures and continue to monitor them and we are confident they are robust.”

The Hawks, a South African police unit, is investigating MTN over allegations contained in a federal lawsuit filed in Washington in March by Turkcell, an Istanbul-based rival. The suit alleges that MTN stole the Iranian telecom license from Turkcell in November 2005 by paying bribes. MTN denies the allegations and has attacked the credibility of former MTN executive Kilowan, who is Turkcell’s key witness in the case. The procurement of banned U.S. products is not a subject of the lawsuit.

‘Civil and criminal consequences’ According to the internal procurement documents, right from the start MTN was well aware of what it termed “embargo issues” and the inherent risks involved.

A December 2005 PowerPoint presentation marked confidential and emblazoned with MTN’s logo noted that the “Consequences of non compliance” included “Civil and criminal consequences.” The PowerPoint slide added that the U.S. government could blacklist MTN, “which could result in all MTN operations being precluded from sourcing products/services from U.S. based companies in future.”

According to a person familiar with the matter, MTN was determined that MTN Irancell procure substantial amounts of U.S. equipment: The U.S. products had performed well in its other networks, and the company’s technicians were familiar with them. But MTN soon learned that its major contractors on the project — particularly Nokia — wouldn’t provide the equipment because of the U.S. embargo.

So MTN executives began to explore ways to procure the parts without violating sanctions, the documents show. The company initially explored an exception to the sanctions known as the “de minimis” rule. Under it, tech products can sometimes be legally exported to Iran from a foreign country if the aggregate value of the U.S. parts or technology inside is less than 10 percent.

According to the person familiar with the matter, MTN believed that if U.S. components comprised less than 10 percent of a large system, its major contractors could legally procure them. But the company learned that the rule applies to each component, not to an overall system.

“Once they figured it out, they realized the vendors wouldn’t accept that,” this person said. “Now they had a problem.”

According to a weekly report from December 2005, MTN also explored another alternative — obtaining U.S. parts from the so-called “grey market,” or unauthorized distribution channels. The report suggests “obtaining go ahead to procure US embargoed products … from grey market notwithstanding the adverse consequences to MTN.”

The person familiar with the situation said MTN was under tremendous pressure to launch the Iranian mobile operator as quickly as possible, because it had told shareholders it projected having 1 million subscribers by the end of 2006. The operator finally launched in October, after months of delays, and is now Iran’s second-largest wireless carrier by subscribers.

The procurement problems are referenced in numerous internal MTN and MTN Irancell documents. A June 2006 status report discussed delays in the delivery of essential components for value-added services, or VAS.

“The primary challenge in the establishment of the VAS solution is simply that the hardware platforms required are of US origin and therefore fall foul of the US embargo on exports to Iran,” the report says. “This means that innovative mechanisms need to be applied to secure delivery of the hardware platforms.” Another progress report makes reference to an “Order placed last week with Turkey and Iran to circumvent embargo issues.”

Reuters reported in June that some of the U.S. equipment — including at least a half-dozen Sun servers –was sourced locally through Iranian companies. But according to the person familiar with the matter, many other U.S. components were acquired via Dubai by Shabakkat, which was paid about $30 million to $40 million to acquire them — about twice their value.

“You had a buyer who was desperate,” the person said, referring to MTN. “They didn’t have any other options.”

Mahmoud Tadjallimehr became a project manager for Nokia on the MTN Irancell project in November 2006. In an interview, he said it was known within the mobile operator that Shabakkat was sourcing U.S. equipment for the project, and he dealt directly with the firm. But he said that one day in discussing a delivery problem, a Shabakkat manager told him, “The issue was not with Shabakkat but with Exit40.” He also said “someone told me that we should never use this name (Exit40) in any kind of emails or conversations.”

According to archive.org, which archives websites, Exit40’s site in 2006 described the firm as a privately held, “leading independent wholesale distributor of IT products” that was headquartered in Switzerland, with offices in Dubai, Florida, Switzerland and India. The site also included this boast: “Exit40’s procurement executives source hard to find or locally constrained products for customers.”

Bill to Stop Modern Day Slavery under Government Contracts


ACLU

By Devon Chaffee

July 12, 2012

Last month the ACLU released a joint report with Yale Law SchoolVictims of Complacency, that documents the ongoing trafficking, forced labor and abuse of foreign workers hired through U.S. government contracts to work in support of U.S. military and diplomatic missions abroad. Recruited from impoverished villages in countries such as India, Nepal and the Philippines, these men and women – known as Third Country Nationals – are charged exorbitant recruitment fees, lied to about what country they will be taken to and how much they will be paid, and often have no choice but to live and work in unacceptable and unsafe conditions.  These abuses amount to modern day slavery; all on the U.S. tax payers’ dime. Now members of Congress want to act to ensure that federal funds are no longer facilitating such exploitative, abusive and illegal practices.

To help put an end to this trafficking and forced labor under contracts funded by the federal government, Senator Richard Blumenthal (D- CT) and Representative James Lankford (R-OK)) have introduced the End Trafficking in Government Contracting Act of 2012. The bill has strong bi-partisan support in both the House and the Senate. This means that even during an election year with heightened partisan tensions in Congress, the bill is one of a handful of measures that has a good chance of becoming law. Recently, the Republican-controlled House adopted the provision—without opposition—as an amendment to a larger defense authorization bill.

The End Trafficking in Government Contracting Act of 2012 will significantly increase oversight and accountability for employee recruitment under U.S. government contracts preformed abroad.  Currently many large U.S.-based government contractors refuse to take responsibility for the recruitment policies of their subcontractors that hire recruiters which in turn use fraudulent and illegal hiring practices to increase their profits. The End Trafficking in Government Contracting Act of 2012 works to address this issue by requiring all U.S. government contractors performing a substantial amount of their contract overseas to ensure that their subcontractors and the recruitment agencies they use comply with U.S. anti-trafficking laws, policies and practices. The bill also increases accountability by increasing reporting requirements and extending criminal prohibitions against fraudulent labor practices, including trafficking and forced labor, to contractors and subcontractors working overseas.

The Obama administration has long had a “zero tolerance” policy against human trafficking based on U.S. government contracts, but to date that policy has not been effectively implemented.  As documented in “Victims of Complacency” and numerous other government and non-governmental reports, hundreds of men and women have been trafficked on to U.S. military bases in Iraq and Afghanistan where they have been subjected to forced labor and other abusive treatment by U.S. government contractors and sub-contractors.  Yet, our government has failed to fully investigate these allegations; nor has it prosecuted or taken administrative action against a single contractor for involvement in such abuses. The End Trafficking in Government Contracting Act of 2012 is an important step towards making “zero tolerance” a reality, and to bringing an end to an unacceptable chain of profits based on trafficking, forced labor and taxpayer dollars.

Mythbusting 101


How government-industry collaboration enhances contracting

February 17, 2011 Marvin Center

George Mason University, Washington D.C

Conference website

South Africa’s new labour policy: an analysis


by Anthea Jeffrey, The South African Institute of Race Relations, February 8, 2011

The Cabinet used the festive season to unveil five new bills: four labour, one on land. All five supposedly aim to help the poor, but their predictable effect will be to worse unemployment and build dependence on the State. Apart from the controversial Protection of Information Bill, these five bills are the firs major legislative intervention by President Jacob Zuma’s administration. They bode ill for South Africa, as the Institute’s in-house legal expert, Dr Anthea Jeffrey, explained at a briefing in Johannesburg on February 2011…In addition, the outsourcing of cleaning and other services has become an important way of promoting the preferential procurement required by the BEE of good practice. Under the bill, however, of a major corporation outsources or sub-contracts its catering needs to a BEE firm, the corporation will be liable for unfair labour practice by the BEE entity. As the RIA warms, this could ‘create a significant disincentive to supply chain diversification and have a negative impact on small business and job creation.’ Read more

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