Addressing legislature today during the debate on the State of the Province Address at the provincial legislature in Pietermaritzburg, KwaZulu-Natal MEC for Finance, Ms Ina Cronjé revealed new innovative ways of rooting out corruption and stated that the provincial government is on a serious mission to deal with this demon.
She elaborated on the measures to expedite service delivery and rooting out corruption the premier referred to in his speech. Giving details on these alterations MEC Cronjé said the following:
1. Sorting out supply chain management
* The Premier emphasised yesterday that: “Government is investigating a shared services model to ensure efficient management of tenders and regular price comparison to eliminate the possibility of inflated prices”.
* Inflation of prices: mainly when government departments procure goods and services through a “request for quotations” instead of a competitive tender process.
* New system in pipeline: will provide all departments with most current prices of all items; price list to be updated on a daily basis.
* Officials who procure goods and services above market clearing price, to explain why.
* System will work like Reuters system which publishes going prices of all commodities traded in the market place
* System will block issuing of orders if the price above listed price for that item
* All accounting officers and supply chain management practitioners will have access to system
* System will allow service providers to bid against one another on strength of competitive prices to supply particular goods or service
* Before introduction of system government will do a spend analysis province wide. Analysis will indicate what are the most frequently procured goods and services, what is the annual expenditure on these items across government, who are the main suppliers, etc.
* System will provide a direct link to existing general period contracts already negotiated by National Treasury (general period contract prices are almost always cheaper)
* Component of system will entail re-negotiating all existing provincial contracts to ensure value for money
* Treasury and Office of the Premier will submit final architecture of system in 2010/11 financial year
* GOVERNMENT NOT A PRICE TAKER BUT A PRICE MAKER, GIVEN THE SIZE OF ITS PROCUREMENT EXPENDITURE
2. Dealing with over expenditure
* Cost cutting measures having positive effects, for example: September 2009 projected overspending of R5.6 billion at end of 2009/10 financial year, 31 December 2009, down to R2.5 billion
* Trend for January and remaining two months of financial year appears to be going down as well
* All departments, except for Health, positive cash balances, very good
* Health: expenditure drivers; Occupational Safety Dispensation (OSD), wage agreement, burden of disease in province plus previous years’ accruals.
* Education and Transport, over expenditure in previous financial year: managing current expenditure quite well
3. Conflict of interest
* No legislation or policy in South Africa prohibits political office bearers from having business interests, provided that they follow prescripts in Handbook for Members of the Executive and Presiding Officers, which outlines the executive ethics code that regulates possible conflict of interest.
* To prevent possible conflict of interest, members of Cabinet or an executive council must declare any personal, private financial or business interests that they may have in a matter before Cabinet or executive council, before a Cabinet Committee or executive council committee on which the member serves or in relation to which the member is required to take a decision as a member of the executive.
* The code also stipulates that where member holds any financial or business interest in a company or a corporate entity or profit-making enterprise which may give rise to a conflict of interest in the performance of that Member’s functions as a Member of the Executive, the Member must, within two months of assuming office, or within two months of acquiring such interest, as the case may be, or within such longer period as the President or, if the member is a Member of an Executive Council, the Premier determiners: dispose of such interest and places the administration of the interest under the control of an independent and professional person or agency.
* Declaration: only for political office bearers or elected public representatives in their own personal capacity
* Does not apply to family members
* Family members free to engage in any lawful business activity based on basic principle in Bill of Rights, section 22 of Constitution, “Every citizen has the right to choose their trade, occupation or profession freely. The practice of a trade, occupation or profession may be regulated by law.”
* Lawful business activity means the business activity must be in accordance with all laws of the Republic of South Africa, for example: the family member may bring no undue influence to bear, may not indulge in corrupt activities to obtain a tender or employment and must avoid all obvious conflict of interest.
For more information, contact:
Musa Cebisa
Cell: 071 687 8777
Issued by: Provincial Treasury, KwaZulu-Natal Provincial Government
25 February 2010
Source: Provincial Treasury, KwaZulu-Natal Provincial Government (http://www.kzntreasury.gov.za/)
