Treasury’s database for suppliers on track

THE Treasury has registered more than 150,000 companies on its central supplier database since September, which in the future will become the sole repository from which organs of state can procure goods and services.

Over the next three years, the public sector will spend about R1.5 trillion on goods and services.

The idea behind the database is to increase transparency in procurement, improve efficiency and reduce costs through electronic registration and verification.

The project was launched by chief procurement officer Kenneth Brown nine months ago.

The Treasury said in a statement on Tuesday that “all organs of state will be required to use suppliers registered on the database”.

“Suppliers therefore only have to register on this platform, rather than registering with each organ of state individually.”

As the database will interface with the South African Revenue Service, the Companies and Intellectual Property Commission, the Department of Home Affairs and the Treasury’s tender defaulters list, it will facilitate compliance with public finance regulations and ensure that companies that are not compliant are not able to do business with government.

It estimated that modernising and streamlining procurement processes will enable the state to save R25bn a year in costs.

A second significant measure to improve efficiencies and savings is the e-Tender publication portal, an online platform through which suppliers will be able to access government tenders free of charge.

Another key feature of the database is that government procurement officials will be able to identify local suppliers.

Once completely rolled out, tender advertisements in newspapers and government gazettes will be phased out, which the Treasury estimates will save about R700m in advertising costs annually.

Municipalities are scheduled to implement the central supplier database from July 1.