National Treasury has asserted that it will take proactive steps to address the areas that need improvement in the country's procurement systems.
An assessment based on the internationally recognised Methodology for Assessing Procurement Systems (MAPS) has revealed important strengths, as well as areas that need improvement within the country's procurement framework.
"While the report identifies several areas that need additional attention, we view these findings as opportunities for continuous growth and improvement.
"National Treasury is deeply committed to the ongoing improvement of procurement systems. The MAPS report will serve as a roadmap, as we strive to uphold the highest standards of efficiency, accountability, and value for all stakeholders," National Treasury said on Monday.
In 2023, National Treasury took the initiative to engage the Organisation for Economic Co-operation and Development (OECD) to assess the South African public procurement system.
The assessment was carried out collaboratively by the OECD, the World Bank, the African Development Bank, National Treasury, and various public, private and civil society organisations.
The report acknowledges the significant advancement in areas such as the recent Public Procurement Act (Act 28 of 2024), which was signed into law by President Cyril Ramaphosa on 23 July 2024.
This Act addresses many of the gaps identified in the report, including consolidating procurement provisions from multiple legislative instruments into a single framework, thereby reducing complexity and promoting a more coherent system.
Areas that were identified for improvement include an extensive, complex and fragmented legal and regulatory framework; the lack of comprehensive procurement planning; insufficient use of e-procurement systems as well as challenges in maintaining confidentiality and transparency.
In addition, the report highlights inadequate professionalisation and capacity-building initiatives; the substantial lack of information and visibility during the execution phase of contracts; delays in payments and limited access to procurement statistics as areas that need to be addressed.
Further areas of improvement include minimal involvement of civil society organisations in the procurement process; internal control and audit weaknesses; an ineffective multi-agency approach to combatting corruption characterised by limited capacity to investigate and prosecute corruption; and inadequate protection for whistleblowers.
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"These findings underscore the need for improvements in these critical areas. In response, we are taking proactive steps to address the highlighted issues by introducing the Public Procurement Act and regulations; developing a sustainable public procurement strategy; strengthening the adherence to the publication of procurement information; improving the transparency of procurement data; enhancing the control and audit framework; overhauling the digital environment of the procurement system; increasing the use of open contracting data standards.
"Additionally, we will implement a professionalisation roadmap for Supply Chain Management; contribute to a strong anti-corruption strategy; assist in strengthening whistleblower protection; and develop a framework to monitor and evaluate the implementation of the action plan. These reforms aim to enhance compliance, streamline our processes, and strengthen oversight in procurement," National Treasury said.
National Treasury said it welcomes the opportunity to collaborate with partners and stakeholders as it implements these recommendations as part of the department's broader Public Procurement Improvement Programme.
