Public sector procurement and black economic empowerment in South Africa: challenges of preferential procurement and decentralisation of the provincial tender board

Abstract

South Africa’s public sector procurement facility is envisaged as one of the key tools to remedy past injustices in that country in which blacks were disadvantaged. Section 217 of the country’s Constitution makes express provision for a procurement policy providing for the preferential allocation of contracts and the advancement of certain persons when procuring goods, works or services. The aim of this article is to explore the constraints facing the public sector procurement facility, preferential procurement; and compliance with tendering regulations in the provincial government Departments of the North West Province. The study used a descriptive survey research design. The analysis of data revealed that the majority of the officials in the supply chain management (SCM) directorate lacked relevant skills, and that tender specification, evaluation and adjudication was a problem. In particular, preferential procurement was not possible where specialised skills for manufacturing, assembly, installation and guarantee were required. Based on these findings, the paper concludes that training interventions are required for employees working in the SCM units for better service delivery and to ensure compliance to policies and procedures.