Government Contracting and Official Capacity: Reflections with Reference to South Africa

Government expenditure is a vital component of economic and social progress and, as such, plays an important role in the transformation process in South Africa. In order to overcome the legacy of discrimination and neglect, South Africa must above all else create conditions for sustainable growth. In this regard, the government has to externalize its public services and enter into contracts with other service providers. As the taxpayer is paying for the services, it is important that officials should be trained and exposed to different and complex contracts But unfortunately due to the government’s policy of rightsizing and downsizing, many skilled and well trained officials have taken severance packages. This outflow has created a vacuum which could create grounds for corruption, the misappropriation of funds, and the poor monitoring of contracts. Therefore, it is of crucial importance that the capacity of officials in administering and managing contracts be developed.