Public Service Commission (psc) Virtual Roundtable
Description: Public Service Commission (psc) Virtual Roundtable 28 October 2020 1 Ms Rakgadi Motseto BACKGROUND Supply Chain Management or Public Procurement should be viewed a system; It is build on a chain of strategic decisions and actions; A
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slide1. Public Service Commission (psc) Virtual Roundtable 28 October 2020 1 Ms Rakgadi Motseto<br>
slide2. BACKGROUND Supply Chain Management or Public Procurement should be viewed a system;
It is build on a “chain” of strategic decisions and actions;
A failure in one area of the “chain” creates a negative reaction in other areas of the system;
For this “chain” to remain stable, it requires all parties responsible, affected and impacted by these processes to do their part; (i.e. SCM practitioners, Accounting Officers, Accounting Authorities, the Higher Learning Institutions, Oversight bodies, the public in the form of businesses transacting with government, etc.)
The broader government system needs an SCM that is responsive than reactive. 2<br>
slide3. Misconceptions relating to SCM 3 Perceived symptoms of a dysfunctional SCM system from AGSA report/Media Reports
With every report/ing SCM is painted dismally
Non-payment of Suppliers – Invoices are processed by Finance
Irregular Expenditure – Finance (CFO)
Critical positions vacant for extended periods – DPSA, AOs, HR managers – unrealistic job requirements
Lack of consequence management – Line managers, Trade Unions, Employee Relations and Accounting Officers for also not initiating restriction of suppliers
Financial Misconduct – CFOs and AOs
Systems downtime - SITA<br>
slide4. SCM Process Demand Management – (60%)
The pre-tendering stage is where most planning and policy consideration occur;
All the demands on SCM should be implemented in this phase
(All policies – BBBEE, Empowerment, Transformation, Youth, Women, People with disabilities, Local Content, Promoting local products, Local Economic Development etc.)
Acquisition – Procurement - (30%)
Tendering where a procurement or buying decisions are implemented
Too late to consider all the policy demands
Logistics – (10%)
Post-tendering phase to manage contracts, suppliers and organisational performance
Disposal – lifespan exhausted (Finance)
Source: National Treasury, (2003) 4<br>
slide5. Capacity challenges in SCM 5 Supply Chain Management (SCM) capacity in the State<br>
slide6. Broader systems’ challenges in ICT 6<br>
slide7. ICT challenges in SCM 7<br>
slide8. COVID-19 Lessons 8 The system has proven to be reactive in Procurement;
Institutions have over or under procured items required;
Suppliers have overstocked and waiting for the 2nd wave of the virus
SCM officials did not have the expertise in health procurement;
Then how do we enforce consequence management? The requirement is development and training before implementing punitive measures.
The public is not fully informed on the role of government;
Developing policies to benefit the public without adequate educating the public is futile
The public’s learning is left to media and social media;
Poor quality products supplied;
Will there be any consequences for suppliers and officials?<br>
slide9. PUBLIC PROCUREMENT BILL - UPDATE The draft Public Procurement Bill (PPB) was published on 19 February 2020 for public comment in Government Gazette No. 43030.
The initial closing date was 31 May 2020 and it was duly extended to 30 June 2020. 9<br>
slide10. PROPOSED AMENDMENTS Incorporates Infrastructure Procurement and Public Private Partnership procurement methods;
Introduces an Alternative Dispute Resolution (ADR) mechanism for review and reconsideration of procurement decisions made by procuring entities;
Proposes the establishment of an independent Tribunal to review administrative actions taken by a provincial treasury or the regulator;
Proposes the repeal of the existing PPPFA as well as amendments to other pieces of legislation such as PFMA, MFMA, etc. 10<br>
slide11. OVERVIEW OF THE BILL Consists of 10 chapters that are divided into different number of parts, eliminating fragmentation in laws which deal with procurement in the public sector by amongst others: 11<br>
slide12. OVERVIEW OF THE BILL 12<br>
slide13. COMMENTS PER CHAPTER Chapter 5 has received most comments, followed by Chapter 6, chapter 1 and chapter 2 13<br>
slide14. Way forward & Noting Capacity
The NSG has conceded to using government officials to facilitate some of the training, than use consultants;
Engaging the NSG to develop a similar SMS pre-entry (Nyukela) assessment for SCM officials;
Source one of the HLIs to develop a strategic program for SCM managers (planning, strategic sourcing, contract management, supplier development);
Other parts of government should align the policies that tend to clash (recruitment and placements);
Education for all stakeholders impacted by SCM processes.
ICT
The absence of an automated process should not be the reason for wrong doing or disregard for prescribed processes;
Reduce the continuous development of new ICT solutions for individual use in institutions. 14<br>
slide15. End… Thank you!
Comments? 15<br>
slide2. BACKGROUND Supply Chain Management or Public Procurement should be viewed a system;
It is build on a “chain” of strategic decisions and actions;
A failure in one area of the “chain” creates a negative reaction in other areas of the system;
For this “chain” to remain stable, it requires all parties responsible, affected and impacted by these processes to do their part; (i.e. SCM practitioners, Accounting Officers, Accounting Authorities, the Higher Learning Institutions, Oversight bodies, the public in the form of businesses transacting with government, etc.)
The broader government system needs an SCM that is responsive than reactive. 2<br>
slide3. Misconceptions relating to SCM 3 Perceived symptoms of a dysfunctional SCM system from AGSA report/Media Reports
With every report/ing SCM is painted dismally
Non-payment of Suppliers – Invoices are processed by Finance
Irregular Expenditure – Finance (CFO)
Critical positions vacant for extended periods – DPSA, AOs, HR managers – unrealistic job requirements
Lack of consequence management – Line managers, Trade Unions, Employee Relations and Accounting Officers for also not initiating restriction of suppliers
Financial Misconduct – CFOs and AOs
Systems downtime - SITA<br>
slide4. SCM Process Demand Management – (60%)
The pre-tendering stage is where most planning and policy consideration occur;
All the demands on SCM should be implemented in this phase
(All policies – BBBEE, Empowerment, Transformation, Youth, Women, People with disabilities, Local Content, Promoting local products, Local Economic Development etc.)
Acquisition – Procurement - (30%)
Tendering where a procurement or buying decisions are implemented
Too late to consider all the policy demands
Logistics – (10%)
Post-tendering phase to manage contracts, suppliers and organisational performance
Disposal – lifespan exhausted (Finance)
Source: National Treasury, (2003) 4<br>
slide5. Capacity challenges in SCM 5 Supply Chain Management (SCM) capacity in the State<br>
slide6. Broader systems’ challenges in ICT 6<br>
slide7. ICT challenges in SCM 7<br>
slide8. COVID-19 Lessons 8 The system has proven to be reactive in Procurement;
Institutions have over or under procured items required;
Suppliers have overstocked and waiting for the 2nd wave of the virus
SCM officials did not have the expertise in health procurement;
Then how do we enforce consequence management? The requirement is development and training before implementing punitive measures.
The public is not fully informed on the role of government;
Developing policies to benefit the public without adequate educating the public is futile
The public’s learning is left to media and social media;
Poor quality products supplied;
Will there be any consequences for suppliers and officials?<br>
slide9. PUBLIC PROCUREMENT BILL - UPDATE The draft Public Procurement Bill (PPB) was published on 19 February 2020 for public comment in Government Gazette No. 43030.
The initial closing date was 31 May 2020 and it was duly extended to 30 June 2020. 9<br>
slide10. PROPOSED AMENDMENTS Incorporates Infrastructure Procurement and Public Private Partnership procurement methods;
Introduces an Alternative Dispute Resolution (ADR) mechanism for review and reconsideration of procurement decisions made by procuring entities;
Proposes the establishment of an independent Tribunal to review administrative actions taken by a provincial treasury or the regulator;
Proposes the repeal of the existing PPPFA as well as amendments to other pieces of legislation such as PFMA, MFMA, etc. 10<br>
slide11. OVERVIEW OF THE BILL Consists of 10 chapters that are divided into different number of parts, eliminating fragmentation in laws which deal with procurement in the public sector by amongst others: 11<br>
slide12. OVERVIEW OF THE BILL 12<br>
slide13. COMMENTS PER CHAPTER Chapter 5 has received most comments, followed by Chapter 6, chapter 1 and chapter 2 13<br>
slide14. Way forward & Noting Capacity
The NSG has conceded to using government officials to facilitate some of the training, than use consultants;
Engaging the NSG to develop a similar SMS pre-entry (Nyukela) assessment for SCM officials;
Source one of the HLIs to develop a strategic program for SCM managers (planning, strategic sourcing, contract management, supplier development);
Other parts of government should align the policies that tend to clash (recruitment and placements);
Education for all stakeholders impacted by SCM processes.
ICT
The absence of an automated process should not be the reason for wrong doing or disregard for prescribed processes;
Reduce the continuous development of new ICT solutions for individual use in institutions. 14<br>
slide15. End… Thank you!
Comments? 15<br>