This reports examines the importance ofefficient public procurement for the national economy forSouth Africa. The country faces a unique task of merging adual economy consisting of the exiting "main streameconomy" and, an "emerging economy". Toprovide a national environment for optimal economicdevelopment; the government planned to mold the twoeconomies into a sustainable unified growth pattern.Following are main recommendations for the near term. Anational uniform procurement policy is currently being putin place, which will be applicable to all organs of state.Preparation of a draft for a national legislative/regulatoryframework for public procurement to establish uniformity intender procedures, policies and control measures. Creationof a national procurement compliance office in the NationalTreasury, which would be responsible only for procurementpolicy formulation, laws and procedures, provisions ofstandard bidding documents and contracts, oversight onimplementation by all organs of state, establishment of aprocurement data capturing system, and training ofprocurement staff. Decision implementation to abolish theTender Boards and have their functions assumed by theresponsible organs of state at the national, provincial, andlocal levels. Establish under the National Public HousingScheme a competitive procedure for the award of contractsdevelopment to obtain savings in the expenditure of fiscalrevenues. Abolish the industrial participation program whichconflicts with the basic principles of efficient, fair, andtransparent procurement. Revise the preferential procurementregulations to provide for "graduation" ofpreviously disadvantaged enterprises when they have reacheda certain turn over rate to avoid that only an elite groupcontinues to benefit from the system.
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