1. BRIEFING TO STANDING COMMITTEE ON APPROPRIATIONS
BRIEFING TO STANDING COMMITTEE ON APPROPRIATIONS OFFICE OF THE CHIEF PROCUREMENT OFFICER - 08 SEPTEMBER 2017
We have an amazing opportunity to influence and direct the national capacity building strategy to address the challenges experienced in finance, risk management and internal audit.
This is an opportunity to be innovative and to present our ideas.
I dream of an effective, efficient, high-performance orientated public service that is flexible, responsive and progressive in their systems, policies and practice.
What needs to be done?

2. SUMMARY OF DEVIATIONS AND EXPANSIONS/VARIATIONS FOR 2017-18 Q1
APPLICATIONS RECEIVED
271
EXPANSIONS/VARIATIONS
231

3. SUMMARY OF EXPANSIONS 2017-18 Q1
QUARTER 1: 2017/18 FINANCIAL YEAR SUMMARY OF EXPANSIONS
Rankings
Entity
Number of Applications 1
Eskom 43 2
Health 14 3
PetroSA 13 4
SARS 10 5
SITA 6
ACSA 8 7
SAPO
Legal Aid SA 9
National Lottery Commission
MQA 11
SANRAL 12
Transnet

4. SUMMARY OF DEVIATIONS 2017-18 Q1
QUARTER 1: 2017/18 FINANCIAL YEAR SUMMARY OF EXPANSIONS
Entity
Number of Applications
AEMFC 9
Environmental Affairs
Geoscience
SITA 8
SASSA 7
RAND WATER
StatsSA 6
Water and Sanitation 5
TCTA
SARS
Rural Development and Land Reform
NHLS

5. COMMON REASONS FOR DEVIATIONS AND EXPANSIONS/VARIATIONS
Lack of planning by government institutions
Inadequate relevant skills and capacity
Lack of contract management
Amendments to scope during tenure of the contracts
Maintenance and support of existing infrastructure
Emergency and urgent procurement processes
Sole source suppliers

6. PROPOSED INTERVENTIONS BY OCPO
Review the entire deviation application system in terms of Treasury Regulation 16A6.4 and attendant instruction notes.
Mapping applications for deviations to submitted procurement plans. Applications may be approved based on procurement plans.
Enforce accountability and compliance by Accounting Officers/ Authorities (we asking Parliament to support us in this regard).
Where deviations have been approved by Accounting Officers/Authorities, condonation process must be followed.
Provide technical support and capacity building to Accounting Officers/Authorities.

7. MAJOR PROCUREMENT ISSUES
There are procurement issues within some SOCs that the National Treasury is reviewing and which are already in the public space, for instance, according to SAA’s procurement plan for 2017/18 there are expenditure requirements, however, they may not implement all of them due to financial constraints.
On Eskom, for instance, National Treasury has already committed to commissioning forensic audit in some coal contracts.
National Treasury is implementing the revised PPF Regulations that came into effect on April 2017, to ensure that all state organs support black economic empowerment, small business development and local industrial development in all their procurements.

8. THE END