SCOPA: Strengthening SCM oversight and accountability. Presenter: CPO, National Treasury 17 September 2014

Transcription

1 SCOPA: Strengthening SCM oversight and accountability Presenter: CPO, National Treasury 17 September

2 Why the OCPO? Malicious compliance Non-compliance Unsuitably qualified procurement practitioners Self-serving procurement practices Misconduct Misuse of public funds Manipulation of procurement systems and processes 2

3 Why the OCPO? Procurement environment Fragmented Lack of coherence between departments Political interference Instability of workforce Lack of accountability Lack of transparency Operational problem (not an SCM problem) Multiple objectives placed on procurement BBB-EE Industrial policy Localisation Designation Supplier development Job creation Modernize procurement to accelerate quality service delivery, reduce cost and attain value for money 3

4 Why the OCPO? Is procurement regarded as a strategic function in government? 4

5 SCM Intervention Capabilities Procurement system should be based on the following capabilities: 1. Demand Planning 2. Procurement Planning 3. Items and Specifications management 4. Supplier management 5. Bids management through the required committees 6. Legal, Contracting and Disputes management 7. Supplies and Contract management (supply schedules) 8. Inspection and Quality management 9. Product and Services management (utilisation) 10. Audit and Enforcement 5

6 SCM CAPABILITY MATURITY LEVEL DESCRIPTION 6 OPTIMISING Continuous learning and improvement 5 MANAGED Use of resources with effective results 4 INFORMATION Measuring how resources are used 3 CONTROL Focus on compliance and control 2 DEVELOPMENT 2.8 Proper internal control framework 1 START-UP No proper internal control framework 16

7 Priority Programmes People Role of accounting officers Roles and mandates of bid committees Develop a Human Capital Development Framework for SCM Initiate, facilitate and coordinate the development and delivery of SCM Education, Training and Development Solutions Developing capability within departments to professionally manage the SCM function Differentiate between routine and complex processes 7

8 Priority Programmes Process Review of the legislative and regulatory framework Developing standard operating procedures and bidding documents Promote, monitor, assess and enforce compliance with established procurement measures Implement a bid review process Monitor the performance of state procurement in respect of achieving value for money and service delivery Standardisation Aggregation Simplicity Creation, resourcing and managing of requisite functions on a day-to-day basis Defining the essential functions (sets of activities) that are needed for effective procurement management and linking these as an operational/working system for SCM 8

9 Priority Programmes Technology Under utilised in government E-procurement Automation Data management and intelligence Performance tracking Payment systems 9

10 How is the CPO organised? 1. Policy & Strategy Policy Norms & Standards National SCM Strategy Preferential Procurement Policy 2. Governance, Monitoring & Compliance SCM Governance SCM Compliance Review & Remedies 3. Information & Communication Technology SCM Systems Architecture & BPM SCM e-commerce SCM Business Intelligence Information & Publications Management 10

11 Functional structure (cont.) 4. Client Support Professionalisation & Capacity Building Education, Training & Development Advisory & Operations Support 5. Transversal Contracting Transversal Contract Management Transversal Contracting Performance & Support 6. Strategic Procurement Strategic Procurement Framework Strategic Procurement Planning Strategic Projects Performance 11

12 How can the CPO assist with oversight? Through transparency Release procurement information Tenders to be advertised Tenders awarded (company info and pricing) Reporting framework similar to PFMA and MFMA to be put in place Release procurement information monthly, quarterly, annually depending in type of information Annual reports to contain procurement information Regular briefings to parliament and legislatures 12

13 How can oversight bodies assist? Ensuring consequence for non-performance Auditor-General reports littered with information on gaps in the system Despite this, no consequence Parliamentary committees need to be vigilant if we need to fix the system 13

14 Thank you 14