National Treasury’s Chief Procurement Officer Kenneth Brown says as much as 40% of Government’s R600 billion goods and services budget is consumed by inflated prices by suppliers – and by fraud.
Brown sites an example of a paper binder that government buys for R25 000 – 13 times what it costs in the shop.
"It means, without adding a cent, the government can increase its output by 30%-40%," said Brown.
"We could be building more roads, more schools without even adding more money to the current budget."
The Money Show’s Bruce Whitfield interviewed Brown.
Scroll down for quotes from the audio below.
We’re spending about R1.8 billion on Microsoft. We’re busy with some serious renegotiations.— Kenneth Brown
We’re renegotiating a number of leases. Government spends about R5.6 billion a year on leases.— Kenneth Brown
We’re looking at the fee structure of construction professionals.— Kenneth Brown
South Africa’s procurement system is way too paper based!— Kenneth Brown
Many people are uttering these nine words around this time of year. Come January they’ll be sorry, but it’ll be too late.
Why is Eskom, seemingly, sabotaging the world’s fastest-growing green energy programme?
Walker Scott Art Advisory’s Dr Fred Scott gives advice on building a high growth African art portfolio.
The Presidency says it values open dialogue, but that it must take place “within the bounds of human decency and decorum".
"Zuma must go. When you are the president who literally laughs off any suggestions that government be held to a higher standard…"
Treasury wants legislation to help it keep tabs on individuals in positions of power in the public and private sectors.