The definition of public procurement encompasses all purchases of goods and services by public institutions in a country, and involves contracts between the government and the private sector in a variety of areas such as health services, the military, construction, etc. Reliable procurement practices transform funds into hospitals, schools and roads.
Procurement accounts for a large part of public resources and thus it is important that the tender procedures occur in an accountable, transparent and well-managed way.
Corruption in public procurement takes away benefits meant for citizens, and lowers the levels of public trust and confidence in the government. It can also be linked to service delivery protests and the erosion of honest competitive bidding.
South Africa loses about R25- to R30-billion of the annual government procurement budget to tender corruption.Read more