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SACTWU Statement, 1 April 2015

 

 

Centralise State Procurement

 

 

The SA Clothing and Textile Workers' Union (SACTWU) congratulates National
Treasury on the new centralised tender portal, etenders.gov.za, which is
supposed to 'go live' today. It is a major step forward towards a more
effective and more transparent tender system. For SACTWU, the etender portal
is a significant first step. However we believe that even greater benefits
can be attained if procurement itself - particularly of clothing, textile,
footwear and leather (CTFL) products - are centralised. We urge National
Treasury to adopt this practice for CTFL products without delay.

 

At present, State procurement is an extremely decentralised activity in
which many hundreds of different public institutions are enabled to procure
goods and services. Up until now these institutions have advertised their
tenders in a chaotic array of media - on websites, newspapers, provincial
bulletins, and the government tender bulletin. It has been an extremely
challenging task for any interested party (whether a business wishing to
supply government or a trade union wishing to monitor government spending)
to simply determine at any moment in time exactly what kinds of goods and
services the State requires. It has also not been possible to track how and
to whom tenders are awarded, since this information is very poorly
published.

 

The opacity of the system has allowed irregularities to flourish. Apart from
wasting public resources, job creation has been stifled. For instance, while
particular products such as CTFL products have been designated for mandatory
local procurement by the State, the lack of transparency of tender
information has created many gaps which are exploited either by public
institutions or by suppliers. As a result, the State continues to buy many
imported CTFL products, and the policy directive for the State to buy local
is not creating as many local jobs as it could. 

 

By bringing tender information together in one space, the etender portal is
likely to bring efficiency and integrity to the tender market. Both are
positive outcomes. From SACTWU's side, we will be monitoring whether tenders
from all public institutions are indeed being published on the etender
platform, and will be alerting National Treasury to instances where this
does not happen.

However more needs to be done.

 

Government needs to ensure that State procurement conforms to local
procurement requirements, where applicable. It also needs to ensure that
when it buys goods which are locally made, the products are made in
factories which comply with the regulated minimum wages and conditions of
work. If not, public money will be channelled to companies which practice
illegality, and government will be failing in its duty to support the Rule
of Law. Such outcomes can best be achieved through having much greater
control of public procurement, and this in turn requires greater
centralisation of procurement.

 

In addition:

 

The ANC's 2014 election manifesto also states as follows: Working together
with all partners, we will run public campaigns to promote local
procurement. This needs to be implemented.

 

The manifesto also states as follows: A centralised process, with
stakeholder representation, will be established to adjudicate on major
tenders in all spheres of government. This also still needs to be
implemented, and is now urgent.

 

 

Issued by:

Andre Kriel, SACTWU General Secretary

 

If further comment is required, kindly contact:

Simon Eppel, 083 652 3559 or 021 4474570

 

 

 

 

 

 

 

 

 

 

 

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