KZN finance: new system to manage supply chain

2010-02-26 00:00

KZN MEC for Finance Ina Cronje is looking at reforming the province’s supply chain management system so that the government does not get ripped off by contractors who inflate their prices.

The system Cronje is proposing will:

• Provide all departments with the most current prices of all items. Price lists will be updated on a daily basis

• Ensure that officials who pay above market clearing prices will have to explain why

• Block the issuing of orders if the price is above the listed price for the item

• Provide access to the system to all accounting officers and supply chain managers.

Cronje said the Treasury and the Office of the Premier will in due course give details on how the system will work. She said the system is based on the premise that the government is not a price taker but a price maker given the size of its procurement expenditure.

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