Exploring the Procurement Challenges in the South African Public Sector

Abstract

Procurement is both a strategic tool and a mechanism enabling the South African government to implement policies for socio-economic development and transformation. Procurement is central to the government’s service delivery system and promotes aims which are, arguably, secondary to the primary aim of procurement, for example, using procurement to promote social, industrial or environmental policies. Supply Chain Management is a policy tool used in the management of the procurement process. Public procurement refers to the process by which the state obtains goods and services. Such a process includes identifying goods and services needed, selecting suppliers, contracting and contract management. Public procurement entails public administration as well as public finance management. The aim of this chapter is to explore the challenges experienced in the field of procurement within the South African public sector. Public procurement operates in an environment of increasingly intense scrutiny driven by technology, programme reviews, and public and political expectations for service improvements. In this chapter, the procurement challenges of the South African public procurement system and process will be analysed and discussed. Furthermore, this chapter explores the link between procurement and supply chain management in the South African context, and, discusses the legislative and policy framework on public procurement systems in South Africa. The chapter discusses the key drivers for centralisation and decentralisation.