Part 6, Volume 1, Page 199
CategoryPart 6, Volume 1, Page 199
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Description:
Executive authorities should be subjected to lifestyle audits on a periodic basis.
Responsible to implement:
• Presidency
Actions on recommendations
The implementation of lifestyle audits for members of the National Executive is in process and is being managed by the Office of the Director-General in the Presidency.
Part 6, Volume 1, Page 196-199
CategoryPart 6, Volume 1, Page 196-199
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Description:
The modality of using implementing agents was misused by the department. Areas that require considerable tightening up as recommended below are: (a) the use of transfer payments, (b) the re-prioritisation of budgets, (c) the oversight responsibilities of various officials and structures, (d) the modality for ensuring adequate accountability by implementing agents and the officials whom they reported to, and (e) the keeping of reliable financial records with verifiable inventories of the assets of any project that is funded through an implementing agent.
Responsible to implement:
• National Treasury
Actions on recommendations
Recommendations that are covered under existing rules, and therefore do not require further action, include the use of implementing agents, the use of transfer payments, re-prioritisation of budgets, oversight responsibilities of officials and structures, ensuring adequate accountability, and the keeping of reliable financial records.
Part 1, Volume 3, Page 845
CategoryPart 1, Volume 3, Page 845
Category:
Description:
It is recommended that the government introduces legislation for the establishment of an independent Public Procurement Anti-Corruption Agency (PPACA).
Responsible to implement:
• Department of Justice and Constitutional Development
Actions on recommendations
The National Anti-Corruption Advisory Council (NACAC) will, in the course of its work to advise on strengthening the country’s anti-corruption institutional arrangements, consider the detailed recommendations of the Commission on the establishment of an ‘Anti-State Capture and Corruption Commission’ and a ‘Public Procurement Anti-Corruption Agency’. Based on the advice of the NACAC and the outcomes of the review of South Africa’s anti-corruption architecture by the Department of Justice, a comprehensive proposal on an effective and integrated anti-corruption institutional framework will be produced for public consultation, finalisation and implementation. To further strengthen the current anti-corruption capabilities, the Investigating Directorate (ID) will be established as a permanent entity within the National Prosecuting Authority (NPA) and ID investigators will be provided with the requisite criminal investigatory powers as contemplated in the Criminal Procedure Act, Act No. 51 of 1977. To address concerns with respect to the independence of the NPA, legislative amendments will be introduced to ensure greater transparency and consultation in the process for selection and appointment of the National Director of Public Prosecutions (NDPP), drawing on the process adopted for the selection of the current NDPP. Work will be undertaken to clarify the Minister's 'final responsibility' over the NPA as set out in section 33 of the NPA Act and settling aspects related to the NPA’s financial and administrative independence.
Part 1, Volume 3, Page 852
CategoryPart 1, Volume 3, Page 852
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Description:
It is recommended that consideration is given to enacting legislation that will establish a professional body to which all officials who work in the area of public procurement should belong. This professional body will fix the qualifications and the necessary training and experience necessary for membership of the profession. Such training and qualification should include high standards of integrity and commitment to resist mismanagement, waste and corruption.
Responsible to implement:
• National Treasury
Actions on recommendations
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to the establishment of a professional body to which all officials who work in the area of public procurement should belong.
Part 1, Volume 3, Page 853
CategoryPart 1, Volume 3, Page 853
Category:
Description:
The Commission recommends that set standards of transparency consistent with the OECD principles for integrity in public procurement be formulated by the National Treasury for compulsory inclusion in every procurement system adopted by a public procurement entity.
Responsible to implement:
• National Treasury
Actions on recommendations
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to setting standards of transparency for inclusion in every procurement system.
Part 1, Volume 3, Page 853
CategoryPart 1, Volume 3, Page 853
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Description:
It is recommended that legislation dealing with the duties and responsibilities of Accounting Officers/Authorities be amended to insert a provision that reads: “No person is criminally or civilly liable for anything done in good faith in the exercise or performance or purported exercise or performance of any power or duty in terms of this Act unless such person acts negligently."
Responsible to implement:
• National Treasury
Actions on recommendations
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to protecting Accounting Officers or Accounting Authorities from criminal or civil liability for anything done in good faith unless such person acts negligently.
Part 1, Volume 3, Page 854
CategoryPart 1, Volume 3, Page 854
Category:
Description:
It is recommended that consideration be given to the enactment of legislation for the greater centralisation of public procurement in certain aspects.
Responsible to implement:
• National Treasury
Actions on recommendations
The centralisation of procurement will be pursued only where it is feasible and where the benefits are likely to outweigh the costs in terms of reduced flexibility and departmental accountability for spending, delivery and outcomes. A return to a fully centralised system is unlikely to improve the integrity and efficacy of procurement. However, it is recognised that extreme decentralisation has also made the procurement system more vulnerable. A multi-pronged approach is required, which builds the state’s capacity in transversal contracts, reduces fragmentation, consolidates legislation, ensures enhanced regulatory and oversight capacity, and enhances transparency.
Part 1, Volume 3, Page 854
CategoryPart 1, Volume 3, Page 854
Category:
Description:
It is recommended that consideration be given to the enactment of legislation for the better harmonisation of the legislation applying to public procurement.
Responsible to implement:
• National Treasury
Actions on recommendations
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to the harmonisation of the legislation applying to public procurement.
Part 1, Volume 3, Page 854
CategoryPart 1, Volume 3, Page 854
Category:
Description:
It is recommended that consideration be given to the enactment of legislation for the better guidance of public procurement officials in applying the legislation governing public procurement.
Responsible to implement:
• National Treasury
Actions on recommendations
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to better guidance and training of public procurement officials.
Part 1, Volume 3, Page 854
CategoryPart 1, Volume 3, Page 854
Category:
Description:
It is recommended that consideration be given to the enactment of legislation for the discontinuance of any deviation based on the concept of a sole source service provider.
Responsible to implement:
• National Treasury
Actions on recommendations
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to regulations to provide clear guidance on the processes to be followed when procuring from a sole source. It should be noted that there are certain goods and services that are provided by limited suppliers due to the uniqueness of the product or service they provide. While it is necessary to tighten regulations with respect to sole providers, it is not feasible to completely do away with these types of deviations.
Part 4, Volume 2, Page 449
CategoryPart 4, Volume 2, Page 449
Category:
Description:
It is recommended that every tender or contract between a government department and/or government entity and a service provider or a provider of goods or services should contain a prominent clause to the effect that no service provider may subcontract or cede its/her/his right to provide the services or the goods to another person or entity or company unless the intended sub-contractor was disclosed in the bid documents as an entity to which the bidder would sub-contract.
Responsible to implement:
• National Treasury
Actions on recommendations
Measures to prevent the cession of rights by tender contractors unless disclosed in bid documents should make provision for instances where amendments to company ownership, such as mergers and acquisitions, make the cession of rights necessary and legally permissible.
Part 4, Volume 2, Page 451
CategoryPart 4, Volume 2, Page 451
Category:
Description:
lt is recommended that consideration be given to the enactment of legislation that will make it a criminal offence for any official or office-bearer of a government department or a state-owned entity or company to award a tender or conclude a contract for the provision of services/goods or with any person or entity unless they are satisfied that such person or entity has produced proof of possession of the minimum academic qualifications or experience or expertise.
Responsible to implement:
• National Treasury
Actions on recommendations
Government is considering – through the draft Public Procurement Bill and amendments to the Public Finance Management Act – the recommendation that no service provider may be awarded a tender or may conclude any contract with a public institution unless it has produced proof of relevant qualifications, skills experience or expertise required to perform the work. It is intended that this legislation be sent to Parliament before the end of this financial year.
Part 6, Volume 1, Page 197
CategoryPart 6, Volume 1, Page 197
Category:
Description:
To the extent that National Treasury has not published standard guidelines on the minimum requirements for the appointment of implementing agents, it is recommended that the guidelines used by the Basic Education Department ought to be used to draft standardised pro-forma guidelines for the appointment of implementing agents. Implementing agents should always be appointed in collaboration with the beneficiaries.
Responsible to implement:
• National Treasury
Actions on recommendations
Recommendations that are covered under existing rules, and therefore do not require further action, include standardised guidelines for the appointment of implementing agents.
Part 6, Volume 1, Page 199
CategoryPart 6, Volume 1, Page 199
Category:
Description:
Provincial Treasury must have mechanisms in place that allow for the consequence management of a recalcitrant head of department or chief financial officer.
Responsible to implement:
• National Treasury
Actions on recommendations
Recommendations that are covered under existing rules, and therefore do not require further action, include ensuring provincial treasuries have consequence management mechanisms in place for recalcitrant a head of department or chief financial officer.
Part 6, Volume 1, Page 197
CategoryPart 6, Volume 1, Page 197
Category:
Description:
It will be noted that reservations were expressed by witnesses [regarding the Vrede Dairy Project] relative to the appointment of the same entity as implementing agent and managing agent. These two roles that should not reside in one entity.
Responsible to implement:
• National Treasury
Actions on recommendations
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to providing appropriate management, contracting, reporting and enforcement guidelines for those who implement projects on behalf of government.
Part 6, Volume 1, Page 197
CategoryPart 6, Volume 1, Page 197
Category:
Description:
Where a strategic partner is brought into a project, there should be no question about a competitive process being followed, the nature of the agreement entered into and the reporting protocols that would apply in respect of the agreement entered into. They must be subjected to a competitive bidding process.
Responsible to implement:
• National Treasury
Actions on recommendations
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to providing appropriate management, contracting, reporting and enforcement guidelines for those who implement projects on behalf of government.
Part 6, Volume 1, Page 197
CategoryPart 6, Volume 1, Page 197
Category:
Description:
The business plan of a project must determine the deliverables. These deliverables must be monitored by the [relevant contracting] department and where necessary the department must place their experts at the disposal of the project to do quality control.
Responsible to implement:
• National Treasury
Actions on recommendations
Recommendations that are covered under existing rules, and therefore do not require further action, include ensuring project deliverables are included in business plans and effectively monitored.
Part 6, Volume 1, Page 197
CategoryPart 6, Volume 1, Page 197
Category:
Description:
To ensure the viability of projects, feasibility reports and business plans must be available and be approved prior to any funds being transferred to a service provider. These must be tabled at the Provincial Executive Council and the National Assessment Panel ('NAP') of the relevant National Department for approval.
Responsible to implement:
• National Treasury
Actions on recommendations
Recommendations that are covered under existing rules, and therefore do not require further action, include ensuring feasibility reports and business plans are available and approved prior to any funds being transferred to a service provider.
Part 6, Volume 1, Page 198
CategoryPart 6, Volume 1, Page 198
Category:
Description:
The [relevant contracting] department must provide guidance and administrative support where appropriate. Legislation must provide appropriate management, contracting, reporting and enforcement guidelines for those who implement projects on behalf of government.
Responsible to implement:
• National Treasury
Actions on recommendations
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to providing appropriate management, contracting, reporting and enforcement guidelines for those who implement projects on behalf of government.
Part 6, Volume 1, Page 198
CategoryPart 6, Volume 1, Page 198
Category:
Description:
Compliance with the transformation imperatives of government is mandatory and remedial action must be taken, including the cancellation of the contract, where an implementing agent fails to comply with these prescripts.
Responsible to implement:
• National Treasury
Actions on recommendations
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to ensuring compliance with transformation imperatives.
Part 4, Volume 2, Page 451
CategoryPart 4, Volume 2, Page 451
Category:
Description:
It is recommended that to the extent that current legislation or government policy of state-owned entities or companies do not prohibit the awarding of a tender or the concluding of a contract for the provision of services or delivery of goods by a person or entity or service provider that does not produce proof that it has the requisite educational qualifications, knowledge or skills and experience for the job awarded to it consideration should be given to ensuring that legislation and policy of government departments or of state-owned entities require that no entity or person or service provider may be awarded a tender or may conclude any contract with the government department or state-owned entity or company unless it has produced proof of relevant qualifications, skills, experience or expertise required to perform the work.
Responsible to implement:
• National Treasury
Actions on recommendations
Government is giving consideration – through the draft Public Procurement Bill and amendments to the Public Finance Management Act – to prohibiting the awarding of a tender unless the responsible official has satisfied themselves that the service provider is qualified. It is intended that this legislation be sent to Parliament before the end of this financial year.
Part 6, Volume 1, Page 198
CategoryPart 6, Volume 1, Page 198
Category:
Description:
The transfer of funds to an implementing agent has now been addressed by National Treasury. The reporting on the recipient of the transferred funds should be clearly noted in the financial statements of departments so as to enable consequence management where funds have not been used for their allocated purpose.
Responsible to implement:
• National Treasury
Actions on recommendations
Recommendations that are covered under existing rules, and therefore do not require further action, include noting the recipient of the transferred funds in departments’ financial statements to enable consequence management where funds have not been used for the allocated purpose.
Part 6, Volume 1, Page 198
CategoryPart 6, Volume 1, Page 198
Category:
Description:
In the event that the beneficiaries to a project have yet to be identified or secured, and work on the project has been initiated by an implementing agent, it is recommended that those assets be registered with the government agency that appointed the implementing agent until such time as the beneficiaries are brought into the project.
Responsible to implement:
• National Treasury
Actions on recommendations
This is no longer relevant given changes in the accounting rules.
Part 6, Volume 1, Page 199
CategoryPart 6, Volume 1, Page 199
Category:
Description:
It is recommended that lifestyle audits be implemented for all senior managers and those officials who are involved in supply chain management.
Responsible to implement:
• National Treasury
Actions on recommendations
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to institutionalising lifestyle audits for all senior managers and officials involved in supply chain management.
Part 1, Volume 3, Page 844
CategoryPart 1, Volume 3, Page 844
Category:
Description:
It is recommended that the government, in consultation with the business sector, prepare and publish a national charter against corruption in public procurement. Such a charter should include a Code of Conduct setting out the ethical standards that apply in the procurement of goods and services for the public.
Responsible to implement:
• National Treasury
Actions on recommendations
The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to a Code of Conduct setting out the ethical standards that apply in the procurement of goods and services for the public.