PPADB ACT UP FOR REVIEW
Act review expected to improve efficiency
PUBLIC Procurement and Asset Disposal Board (PPADB) Executive Chairman, Elijah Motshedi, is hopeful the amendment of the PPADB Act and regulations will improve efficiency in procurement and asset disposal.
When delivering his budget speech last month, Finance and Economic Development Minister, Dr Thapelo Matsheka, indicated that government is reviewing the PPADB Act to - among others - streamline the overall procurement process, increase the threshold for procurement devolved to implementing ministries and procuring entities.
He said this is in order to speed up project implementation and the review is expected to be completed in the 2020/2021 financial year.
Briefing journalists this week, Motshedi said the review is a welcome development which will go a long way in addressing challenges faced by the Board.
He said the review has long been overdue and says the amendment will cut some of the processes that have been in place.
Currently, PPADB is faced with a number of challenges such as procurement entities not adhering to procurement plans, hence affecting implementation of projects.
According to Motshedi, there are also delays in initiation of procurement by procuring entities, evaluation of tenders and contracting, which he says discredit the procurement system.
Other challenges are delays in disciplining contractors due to contractors’ tactics and poor recordkeeping by procuring entities.
PROCUREMENT
“Virement of funds by some procuring entities after award of tenders or initiation of procurement discredit the procurement system,” said Motshedi, adding the absence of District Tender Committee secretaries continues to be a concern.
Meanwhile, Motshedi says in the first half of the 2019/2020 financial year, 118 complaints were received by PPADB.
He said six complaints, which represent 5 percent of total complaints, were lodged against the board while 40 percent or 47 complaints were against decisions at Ministerial Tender Committees (MTC).
In total, he said the
Board handled 53 complaints and appeals, a figure which represents 45 percent of all complaints that were recorded.
Motshedi said 32 appeals and complaints were resolved within the set standard 14 days turnaround time.
In all these complaints, the Ministry of Transport and Communications had the highest number of complaints at 31 followed by Ministry of Defence, Justice and Security with 15.
When it comes to suspension and delisting, Motshedi says currently Azraa & Asadullah Investments (Pty) Ltd and Discount Woodworks (Pty) Ltd - their directors and shareholders - are still on suspension for a period of 30 months.
The suspension was imposed from the 31st August, 2017 and will only be lifted on 30th March this year while another company, 3PIN Solutions, has been delisted from the PPADB register.