State Owned Enterprises Procurement Forum

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State Owned Enterprises Procurement Forum

• 31 August 2005
• JMS SekhasimbeChairperson of the SOEPF

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What is it? / When was it formed?

• A forum of Procurement/Supply Chain Management
  heads of the State Owned Enterprise
• We decided on the name State Owned Enterprises
  Procurement Forum (SOEPF)
• We aim to share best practices in Supply Chain
  Management within the SOEs
• SOEPF was formed in June 2004
• Membership is on a voluntary basis
• We meet first Friday of every month

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Who are the members (SOEs)

• Founder Members
• Denel (Chairperson), Telkom, PetroSA, SAPO
• Additional Members
• Transnet, SAA, SITA, Eskom, IDC, SARS, National
  Treasury, Metrorail, CSIR, Transwerk, Rand Water,
  USA (Universal Service Agency), National Ports
  Authority (NPA), South African Rail Commuter
  Corporation (SARCC)
• Guest Status
• SMME Forum President dti

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Authority

• The forum shall have no powers to take decisions
  that will bind the individual entities
• The forum shall be empowered to make proposals,
  to be unanimously agreed upon, for adoption by
  individual entities
• Each entity reserves the right to approve or
  reject any proposal made by the forum or approve
  a proposal on such terms and conditions as it
  deems fit.

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What do we hope to achieve?

• 1. To identify where synergies exist and exploit
  to benefit SOEs
• - Tenders includes sharing of tender
  specifications
• Vetting / Due Diligence Audits on Suppliers
• Fronting and other transgressing / circumventing
  activities
• Procurement system engines
• Supplier Development Opportunities
• Black Economic Empowerment
• 2. To determine a joint procurement strategy
  which will assist State
• Owned Entities with the formulation and alignment
  of entity specific
• Preferential procurement policies, procedures and
  processes

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What do we hope to achieve?Continued

• 3. Facilitate the creation of sustainable
  suppliers through Supplier and Enterprise
  Development Initiatives
• 4. To share information on global best practices
  in the procurement of goods and services
• 5. Lobby government in order to influence policy
  with respect to BEE and Enterprise Development
  policies in the procurement of goods and
  services
• 6. To actively promote and adhere to the
  Prevention of Corrupt Activities Act by
  recommending the blacklisting of suppliers who
  engage in irregular activities in procurement

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What do we hope to achieve?Continued

• 7. To establish and participate in the management
  of a central SOE database aimed at creating
  and/or developing sustainable suppliers
• 8. To create a conducive environment for supplier
  development and link joint supplier development
  programs to contracts
• 9. To advise SOEs with the reviewing,
  controlling, regulating, governing and managing
  the implementation of procurement policies and
  procedures
• 10. To promote Procurement as an integral
  function and profession
• 11. To ensure quality and continuous improvement
  of processes and procedures in SOE procurement
  areas

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What do we hope to achieve?Continued

• 12. To leverage on economies of scale by joint
  participation in tenders and other joint
  purchasing activities. In all instances, this
  will be subject to the rules and governance
  structures of each individual participating
  entity
• 13. To provided guidance and assistance with
  respect to the adequacy, efficiency and
  economical use of SOE resources in the
  acquisition of goods and services whilst ensuring
  compliance with policies, standards, procedures
  and applicable laws and regulations
• 14. Promoting local value-add and manufacturing

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What have we achieved?

• Finalised and signed/adopted our charter
• Engaged/Lobby National Treasury around challenges
  faced by SMMEs
• Engaged SARS around the challenges faced by
  SMMEs (Tax clearance certificates, etc)
• Benchmarked our policies

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Why forward

• A common website will be presented to the forum
  on 02 September 2005
• Formally launch the SOEPF to the public

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• THANK YOU