City’s procurement transparency is unparalleled in South Africa
7 July 2015
The City of Cape Town is committed to a procurement system that is transparent and fair.
The transparency and fairness begins with maximising access to information around what tenders and quotations are available. In addition to advertising tenders in the press, all tenders and quotes above R2 000 are advertised on the City’s website.
The City maintains a supplied database where suppliers are able to register for free. Advantages of registration include alerts to tenders/quotes for their registered business type and alerts regarding the need to renew required documentation, such as tax clearance certificates.
When tenders are being adjudicated by the Bid Adjudication Committee, the meetings are open to the public – a situation not seen in any other municipality across the country. These meeting are advertised on the City’s website and usually take place each Monday afternoon.
This administration appreciates that it is tasked with spending public money to benefit the residents of Cape Town. This is a task we handle with the utmost respect and consideration.
As such, our procurement system is fair, equitable, transparent, competitive and cost-effective, in accordance with the Constitution of South Africa. Our processes are there for all to see and to interrogate when the committee meets every week. Councillors are not allowed at the meetings as the discussions and outcomes must be exempt from any political input or bias.
The process of tender evaluation and award is rigorous. It has to be, as the City in the 2013/14 financial year procured R11,86 billion worth of goods and services through tenders. A total of 522 tenders were advertised for which 4 966 submissions were received. The City issued 233 033 purchase orders (i.e. 930 per working day).
With these large numbers at play, this administration believes it is imperative that our committee meetings where tenders are awarded are open both to the media and members of the public who may observe, but not directly participate in, proceedings.
At these meetings, the Bid Evaluation Committees have to report to the Bid Adjudication Committee, and must persuade them that they have carried out a thorough evaluation and made a recommendation that is compliant with the law.
The City’s transparency and sound principles are likely why our healthy balance sheets and sound financial practices have been locally and internationally lauded by independent parties. The City has received 11 consecutive unqualified audits – a feat that also sets us apart from other South African municipalities.
The City is currently phasing in the implementation of its e-bidding process, which will see further enhancements to the ease of access for tenderers. Tenderers will soon be able to submit bids online, which provides the advantage of ease of access, while also ensuring that bid amounts are accurately captured into the bid evaluation process without the risk of transfer errors.
Once contracts are awarded, the contractor will also be able to monitor the progress of their invoices through the approval process until payment is made.
Bid Adjudication Committee meetings are held at the Civic Centre every Monday. For details on meetings, please see here.
Statement issued by Alderman Ian Neilson, Executive Deputy Mayor and Mayoral Committee Member for Finance, City of Cape Town, July 7 2015
