Since State Capture, supply chain practices across the public sector have regressed. Procurement has become a compliance function rather than one that adds value, and a range of Treasury best practices have collapsed to a very restrictive use of the ...
The devastating impact of State Capture lies not just in the money that has been siphoned out of the public sector, but also in the collateral damage done to public sector management.
These conscientious managers are intimating that there have been knock-on effects from State Capture. As they look at their organisations, they see that hesitancy, poor decision-making and bad management in the wake of State Capture are indeed causing measurable harm. Both of us have worked with procurement functions in many different contexts; one of us spent time in Europe generating millions of dollars of improvement in large, already productive organisations. There are important lessons to be learnt from international best practice for quicker, responsive, cost-effective service delivery.
Fortunately, in the public sector, all these tools are indeed available in the form of practice notes and regulations written during the time of President Thabo Mbeki when Treasury believed that the developmental state could be agile and productive. It is not enough to take the lowest cost of a donkey cart, should one be required. A procurement officer should have an independent view as to what a donkey cart should cost and whether or not a premium is being paid. This elevates the role of the procurement officer.
Since the late 1990s, governments across the world have moved to become leaner, more efficient and more responsive. This has involved governments focusing increasingly on value for money, best practice and innovation. Cumbersome practices aimed exclusively at compliance have been replaced by equally robust practices, but aimed at creating value.First, procurement has become a compliance function rather than one that adds value.
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