1. The review of the existing procurement regulatory framework through the Public Procurement Bill is a measure that will be put in place to prevent the mass looting that takes place in the Government’s supply chain management processes. The Draft Public Procurement Bill makes the following provisions:
2. The National Treasury, furthermore, proposed to the DPSA, the following Key Government Focus Areas (KGFA) and Key Focus Area Activities (KFAA) to be included in the Performance Agreements of Head of Departments:
Key government focus areas: Supply Chain Management System
|
KGFA |
KFAA[1] |
Suggested Weight |
Target Date |
Indicator/Target |
Baseline Data |
|
Develop and implement effective and efficient supply chain management system |
Elimination of wasteful and fruitless expenditure |
20% |
Annual |
70% elimination of wasteful and fruitless expenditure from baseline 2019 [2] |
2018 Baseline |
|
Reduction of irregular expenditure |
20% |
Annual |
65% reduction of irregular expenditure from baseline 2019[3] |
2018 Baseline |
|
|
Reduction of qualified audits |
20% |
Annual |
Unqualified audit opinion with 25% fewer findings than 2019/20[4] |
2018 Baseline |
|
|
Ensure that procurement planning is managed |
15% |
Annual |
The finalisation of tender awards within an average of 100 days |
Average number of days to award tenders |
|
|
Ensure that SCM risk management is performed |
5% |
Annual |
Risk response plans for the top 5 SCM risks developed |
Risk response mitigation plans |
|
|
Ensure that the department pays all compliant supplier invoices within 30 days of receipt of invoice |
20% |
Annual |
100% of compliant supplier invoices paid within 30 days of receipt of invoice |
Average supplier payment days |