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The National Treasury says a report on acquisitions related to Covid-19 is expected in late September.
Treasury’s objective is to present the Draft Law on Public Procurement before the end of the year. The bill aims to provide a single regulatory framework for public procurement and to address fragmentation in the regulation of public procurement.
The bill is highly anticipated amid allegations of corruption in the procurement of goods and services for the country’s response to Covid-19.
“The government does not have an integrated procurement system,” said Estelle Setan, chief director of strategic procurement for the National Treasury, on Tuesday (September 1, 2020).
“We have more than 719 contracting entities, with very diverse payment and purchasing systems.”
Setan said a report on the procurement process between April and August (South Africa shutdown and Covid-19 related acquisitions) will be provided at the end of September, and then monthly thereafter.
Treasury will analyze transactional data since April, to assess trends around the payment of items and suppliers. Setan said the first report, containing this level of detail, will be shared at the end of the month.
He said the Treasury will make it an integrated reporting system for all expenditures at that level in the future.
Call for the draft law on public procurement
Corruption Watch and the Public Affairs Research Institute (PARI) called for a draft Public Procurement Law as soon as possible to combat corruption amid recent accusations since the start of the Covid-19 pandemic.
“While procurement law cannot be a magic bullet, a vigorous, swift, and decisive debate on the form and content of the Public Procurement Bill can be more than an important first step in addressing current and persistent problems in this crucial area of government activity.
“As we have seen frequently in recent months, our current procurement system is in need of a radical overhaul,” Corruption Watch CEO David Lewis and PARI CEO Dr. Mbongiseni Buthelezi wrote in an open letter. jointly with President Cyril Ramaphosa and Finance Minister Tito Mboweni. , released Tuesday (September 1).
“Rather than the current corruption bringing back bad memories of the capture of the state, our experience of capturing the state has taught us to expect that some public officials do not have sufficient principles to exploit their access to public funds for personal gain” they wrote.
Ramaphosa said Monday that cadres caught up in corruption must provide explanations to the ANC’s integrity commission. Those who give unacceptable explanations can be suspended. And those who are convicted must resign from leadership positions and face disciplinary action.
“They have to be serious accusations that are of such a nature that someone must answer for himself in a satisfactory way. Once they have done so, the integrity commission must consider what they say and make a decision, ”said the president.
Lewis and Buthelezi noted that the current procurement system has “significant weaknesses,” but they believe the bill will review those weaknesses. For it to work, however, it requires a “strong political will and leadership of yourselves” from Ramaphosa and Mboweni and a willingness to work with all stakeholders.
“We do not perceive on the part of the government the necessary degree of commitment, urgency and focus of the public mind that is required immediately on this fundamental issue,” they wrote.
“Now we have the opportunity to introduce a new system that can incorporate best democratic practices when it comes to spending public finances. We simply cannot afford to waste this opportunity. “
Read: New Grant Voucher System in South Africa
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