Speaker, hon Ngonyama, the current tender system applied by government is in line with the prescripts of section 217 of the Constitution of the Republic of South Africa of 1996, which provides that contracting for goods or services must be done in accordance with a system that is fair, equitable, transparent, competitive and cost-effective.
The acquisition of goods and services is encompassed in the supply chain management processes which form an integral part of government's financial management system. This approach gives effect to the letter and spirit of both the Public Finance Management Act and the Municipal Finance Management Act, the objectives of which are to secure sound financial management and combat fraud and corruption.
The Minister of Finance, during the Budget Speech, announced the following initiatives that will be implemented by National Treasury to improve the procurement capability within government: firstly, eliminating fragmentation in the system and strengthening the national procurement structure and processes; secondly, appointing a chief procurement officer who will have overall responsibility for monitoring procurement across government; thirdly, reviewing the competencies and capabilities required to perform the procurement function, as well as strict vetting of all supply chain officials; fourthly, developing a national price reference system to detect deviations from acceptable prices; fifthly, strengthening the tax clearance system to ensure that those who have defrauded the state cannot do business with the state; sixthly, undertaking a joint review, with the Minister of Public Works, of the validity and cost-effectiveness of all government property leases; and, lastly, improving the ability of departments to set the specifications for tenders. The Minister of Finance will provide details regarding the implementation of these measures. I thank you. [Applause.]