Section 217 of the Constitution of the Republic of South Africa requires an organ of state to contract for goods or services in accordance with a system which is fair, equitable, transparent, competitive and cost effective. The policy of the Auditor-General has been developed to give effect to the enabling legislation as outlined in the Preferential Procurement Policy Framework Act, 2000 (Act 5 of 2000) and the Preferential Procurement Regulations, 2001.

The policy guides all procurement in AGSA in accordance with sound business practices and the five pillars of procurement:

  • Value for money,
  • Open and effective competition,
  • Ethics and fair dealing,
  • Accountability and reporting
  • Preferential procurement.

Types of procurement
The AGSA's procurement focuses on two distinct areas:

1. General procurement
This type of procurement gives support to the AGSA in general and includes both non-audit and support service. It procures goods and services for various functions  to enable the AGSA to operate as a business on a day-to-day basis.
2. Contract work procurement
This type of procurement gives support to the audit business units. The purpose is to contract out work to audit firms and to contract-in firms to audit on behalf of the Auditor-General.  An open tender process is followed every 3 years for this purpose.

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Supply chain management office
The supply chain management has been established to effectively manage supply chain in the AGSA. It's sole and deliberate goal is to increase the effectiveness and efficiency of business units and to ensure that the process is streamlined, effective, transparent, fair and equitable.

Our understanding of the supply chain:

  1. Demand management
    Identify requirements
  2. Acquisition management
    Procurement process
  3. Logistics management
    Inventory management
  4. Disposal management
    Removing products in the most economical way

Preferential procurement policy

Introduction
Preferential procurement is aimed at increasing the volumes of purchases from targeted categories of society and to foster the development and utilisation of such enterprises. Goods and services will be sourced from targeted categories of society with a deliberate view of equalising market accessibility of the previously marginalised groups and thus ensure that they have a meaningful role in the development of our economy.

The policy is also intended to be consistent with the objectives of the Broad Based Black Economic Empowerment Act, 2003 (Act 53 of 2003),  promoting the principles of the Reconstruction and Development Programme as well as the government’s policies relating to socio-economic objectives.

The Auditor-General aims to facilitate and contribute to BBBEE and capacity building in the financial management of the public sector. Thus the AG will procure goods and services based on the appropriate criteria stated in the categories listed in the Policy as per appropriate.

Contract work allocations
Procurement/Supply Chain to provide content