The National Treasury is looking to automate the government’s procurement processes by 2030, in a move the state hopes will make the tender processes more transparent and less corrupt.
The current system, which is still heavily paper based, has opened up procurement to fraudulent activities that have seen syndicates fleece the state of billions of rand annually, with evidence in some instances burnt or destroyed.
“The National Treasury has identified the modernisation of public procurement as a strategic priority for the 2025-30 planning period,” a department spokesperson said.
“The current system is still largely paper based, and we are in the process of developing an automated electronic government procurement (e-GP) system that will be introduced in phases in line with the requirements of the Public Procurement Act (2024).
“This phased approach ensures that the system is robust, secure and responsive to the needs of both government and suppliers.”
‘Gradual process’
The timelines for the implementation of the project are still being finalised. “Our goal is to start rolling out key modules during the planning period, with full automation achieved through a gradual and well-managed process.
“This will enhance efficiency, transparency and accountability in public procurement. We continue to manage the core of any procurement automation, which is automating supplier management, planning and tender management and contract management, which are currently automated and managed by the National Treasury.”
The flouting of SA government tender processes has wasted much of the state’s more than R800bn annual procurement spending, leading to a rise in tenderpreneurship and victimisation and, in some instances, the assassination of whistle-blowers.
Decentralised procurement across thousands of departments and municipalities means variable oversight: some entities have strong controls, but many others do not. Corrupt actors exploit these weaknesses.
Strategic intervention
The National Treasury in its strategic plan for 2025-30 said modernising public procurement as a strategic intervention is aimed at creating a more efficient, transparent and accountable procurement system that delivers better value for taxpayers’ money while promoting fair competition and supporting economic development.
“Digitalisation of public procurement fundamentally changes the way procurement activities are conducted, making the process more efficient, transparent and accountable. It empowers both buyers and suppliers with digital tools and platforms that streamline operations, enhance decision-making and drive better outcomes in public procurement.”
The 2025-30 strategic plan aims to have completed the project on digitised public procurement system for the state by 2030.
“Over the medium term, the focal areas of the procurement automation process include implementation of a fully automated end-to-end open tendering solution by 2027/28 and piloting of the automated process of handling requests for quotations by [the] 2025/26 financial year as part of the government-wide digitalisation of the state plan.”
However, automating tender processes may not on their own rein in looting of public funds, as corrupt government officials have become adept in colluding with rogue private sector players. One of the tactics deployed includes drafting tender specifications to fit a specific company’s product or services.
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