Chief Procurement Officer Aims To Save R25 Billion Over The Next Three Years

The Office of the Chief Procurement Officer – an initiative by National Treasury to centralise procurement and cut out corruption – has reiterated that it aims to save R25 billion over the next three years.

The office, set up in February 2013, notes it has already set up a central supplier database, which went live last September at www.csd.gov.za.

This, it says in a statement issued on Tuesday, means the government will also be able to reduce its administrative burden, and the portal will also benefit suppliers.

“The system verifies and validates information with the South Africa Revenue Service (SARS), Companies and Intellectual Property Commission (CIPC), and Department of Home Affairs, amongst others.”

From April, this portal will be mandatory for all suppliers to national and provincial government and entities. From July, it will be rolled out to local government, National Treasury adds.

In addition, the office says, tenders are also available at www.eTenders.gov.za, which provides access to more than 2 200 tenders worth a total of R30 billion.

“The compulsory implementation of this portal from April 1 will save government R400 million in advertising costs per annum with running costs of R16 000 per month.”

In addition, from April, all common goods purchased by government will be procured collectively.

During the 2016/17 financial year, the office will negotiate with the Top 100 suppliers to government to explore savings.

The first leg of these negotiations will focus on the travel industry prior to issuing a travel policy to government for mandatory implementation on April 1, followed by construction, ICT and leases.

This approach is expected to result in close to R25 billion savings over the next three years.

In addition, the office has been reviewing all tenders above R10 million since June 2015, across government and its entities to ensure compliance with procurement rules.

Yet, it notes, the non-payment of suppliers within 30 days remains a challenge across government.

To combat this, the office will – in partnership with the Black Business Council in the Built Environment – establish a walk-in and call centre to facilitate the resolution of this for suppliers with unpaid invoices.

Source – iol


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