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An analysis of the tender process in national government in South Africa / Stanley Ace Ngobeni

Tendering process is central to national government in South Africa. The goods and
services bought by national government in South Africa represent a large amount of
public money, and it is very important that national government put in place measure
to manage how these goods and services are acquired. In the main government
acquire goods and services through tender system and the focus of the study was
tendering process in national government in South Africa. The amount of public
resources that national government uses in the tendering process is huge and is
approximately over 20% of GDP, which has direct implication for service delivery and
job creation as well as redressing past discrimination by empowering designated
groups of peoples to receive preference in tendering.
South Africa is one of the countries with the highest level of corruption rate in the
world, of which tender fraud and corruption play a major part. Considering that, the
reform of tendering process in national government is therefore inevitable and has to
take place.
The primary objective of this study is to analyse national government tender system,
and identify the tendering problems facing South African national departments. The
study further made practical recommendations to National Government, National
Treasury, and all the relevant stakeholders relating to the management of tendering
process. Data from 355 questionnaires completed by participants, represented 45
national department was collected and analysed.
This study found that national government is facing major challenges in managing of
tendering process, and these challenges relates to implementation and adoption of
the code of best practice.
The most important conclusions drawn from the study are:

* The department complies with all the above legislation and keep the rules as
stipulated in the legislation;
* There is a need to issue a single national legislative framework in terms of
section 76(4)(c) of the PFMA to guide uniformity in tendering process;
* The tendering legislations and its associated regulations are complex and
may make it difficult to implement correctly;
* The department follow all tendering process generic steps at all times;
* The current evaluation system is not a good system and is biased towards
the lowest price bidders;
* The current tendering practices in government are outdated and inefficient;
* Tender practitioners are not adequately trained in the application of the tender
process and its associated regulations;
* The departments did not keep a detailed and consistent documentation of all
events of the whole tendering procedure at all times;
* The current tendering practices do not conform to internationally accepted
best practices;
* The department’s tendering function is not carried out in a cost–effective way;
and
* The current tendering system is fair, encourages competition, and has
integrity.
Practical recommendations are suggested to ensure the effective management of
tendering process in national government. / Thesis (MBA)--North-West University, Potchefstroom Campus, 2012.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nwu/oai:dspace.nwu.ac.za:10394/7596
Date January 2011
CreatorsNgobeni, Stanley Ace
PublisherNorth-West University
Source SetsSouth African National ETD Portal
Detected LanguageEnglish
TypeThesis

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