SCOPA OCPO Progress 06 September 2016
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- Letitia Wilson
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1 SCOPA OCPO Progress 06 September
2 Establishment of the OCPO Established in 2013 to give effect to Section 217 of the SA Constitution To ensure adoption of the procurement principles that are: Fair Equitable Transparent Competitive and Cost-effective. 2
3 SCM Legal Framework - OCPO The Constitution. The Public Finance Management Act (PFMA) and its Regulations. The Municipal Finance Management Act (MFMA) and its Regulations. The Preferential Procurement Policy Framework Act (PPPFA) and its regulations. Prevention and Combating of Corrupt Activities Act. Prevention of organised Crime Act. 3
4 Status of OCPO Since the establishment of the OCPO through the Specialists Function: SCM Review released in 2015: diagnostic of public procurement and provides a reform roadmap OCPO corporate structure: Policy & Legal Governance, Monitoring & Compliance, Transversal Contracts, Strategic Sourcing, SCM ICT, and SCM Stakeholders &Clients Management Office is fully established Some vacancies need to be filled. 4
5 Achievements: 2015/16 Central supplier database Central portal for registration of prospective government suppliers Benefits Once off supplier registration Reduction of administrative cost/compliance burden Standardised and electronic verification of supplier information Tax (SARS) Business registration (CIPC) Bank accounts Identity (DHA) Tender defaulters, State employees, etc registered suppliers 5
6 Achievements: 2015/16 etender Portal A web based platform for organs of state to advertise bids, publish bid notices, amendments or erratums cancellation and awards Benefits Free access to tender documents Transparency Advertisements linked to Procurement Plan Tender awards, cancellations, deviations and amendments Cost saving advertisements 6
7 Achievements: 2015/16 gcommerce Online shopping tool that makes it easier for procurement officials to purchase from transversal contracts, eg. Amazon.com for government. Online shopping site for transversal contracts linked to budgets reduces the level of over and under-spending 7
8 Achievements: 2015/16 Reviewing contracts above R10 million as per the Public Protector Instruction: Coal contracts Eskom awaiting the response from the board before finalising the report. Consulting Contracts Transnet Implementing remedial actions of Public Protector: PRASA Quarterly Publication of Procurement Plans on the OCPO website Institutions to submit quarterly reports to provincial legislature and Parliament for oversight purposes. Oversight committees to assess if institutions comply with procurement plans to speed up service delivery. 8
9 Achievements: 2015/16 the National Treasury currently manages 40 transversal contracts for the purchase of goods such as vehicles, medical consumables and devices, textiles, etc. worth R26 billion. Learner teacher support materials Savings reduction in price of stationery packs to R110 per learner. LTSM Savings projected at R1 Billion if all provinces participate in the contract. School furniture tender Limpopo and EC Norms and standards in school construction (Eff. 1 July 2016) R35 million per school 9
10 Achievements: 2015/16 Strategic procurement framework drafted and circulated. This will provide guidance on how to apply differentiated procurement methods for the various procurements e.g.. infrastructure vs stationery National travel policy developed to create uniformity in travel management (Eff.1 July 2016) Standards for infrastructure procurement and delivery system developed and issued 10
11 2016/17:30-Day Payments The process started 1 July 2016 Invoices Received 1680 R199,403, Paid 228 R16,879, Unpaid 1455 R182,524, Travel Industry R declared overdue 11
12 2016/17:30-Day Payments Province In numbers Total invoices received Total Invoice Paid Total invoice outstanding Qty Value Qty Value Qty Value Dept of Water Affairs & 38 10,313, , ,156, Sanitation Dept of Transport 2 1,306, ,306, Dept of Human Settlement 1 1,029, ,029, Dept of Public Works 2 758, , Dept of Correctional 1 466, , Services Dept of Home Affairs , , , SAPS 2 150, , Dept of Justice 1 15, , Dept of Agriculture 3 7, ,
13 2016/17: 30-Day Payments Province In numbers Total number of invoice received Total number of Invoice Paid Total number invoice outstanding Gauteng Eastern Cape Kwa Zulu Natal Northern Cape Western Cape Limpopo Mpumalanga Free State North West TOTALS
14 SCOPA Report 2013/14 The report cited SCM as a challenge for most institutions, The Section 217 principles are not implemented by procuring institutions due to abuse of Supply Chain management by officials and suppliers, 14
15 Abuse of quotation processes Cover quoting Inflating prices Rotation of suppliers not done Market research not done Splitting procurement to avoid competitive bidding Expansions of amount procured through quotations 15
16 Abuse of bid processes Specifications tailored to favour certain suppliers. Evaluation criteria changed during evaluation and adjudication of bids. Suppliers appointed at exorbitant prices. Market research not done. Deviations used to avoid competitive bidding. Variations used to avoid competitive bidding. 16
17 Measures to prevent abuse of SCM Limit deviations to emergency and sole supplier cases. Prior approval of the reason to deviate from relevant Treasury for any other deviations. Prior approval of variations exceeding 15% for goods and services and 20% for infrastructure. Publication of the procurement plans. Publications of procurement done through deviations and expansions. 17
18 Remedial actions not implemented by Institutions Employees not disciplined for abusing the SCM. Criminal allegations against employees and suppliers not reported to law enforcement agencies. Criminal charges not properly investigated. Employees who contravene section 34 of the Prevention and Combating of Corrupt Activities Act not prosecuted. Suppliers and employees who contravene chapter three of the Prevention of Organized Crime Act not prosecuted. 06/09/
19 WAY FORWARD Lack of deterrent encourages non compliance. Let us see more convictions than withdrawal of criminal cases. Let us see more dismissals than transfer to other institutions of those employees who abuse SCM. OCPO is ready to train investigators and prosecutors who handle SCM related cases. Suppliers need to understand the processes of SCM in order to participate in the Public Bid Evaluation/Adjudication process. 19
20 THANK YOU OCPO 20
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