Public sector procurement as strategic tool for black economic empowerment at Sedibeng District Municipality

Abstract

The central objective of this study was to establish the extent to which public procurement, as applied at Sedibeng District Municipality, contributes to the development of designated suppliers. Previously, procurement was considered just another function of government responsible for purchasing and receiving goods. Currently, procurement is considered a strategic function that can be utilized by government to achieve certain policy objectives, such as Black Economic Empowerment (BEE) and Local Economic Development (LED).If implemented properly, without favoritism, nepotism and corruption, public sector procurement will promote the empowerment of designated groups. In this way, it will address socio-economic imbalances of the past. The study's hypothesis implied that Sedibeng District Municipality has laudable objectives to promote black economic empowerment through procurement. However, the implementation procedures and processes showed considerable constraints. Academic literature and government procurement documents were reviewed; and interviews were conducted at Sedibeng municipal area. The literature study was based on best procurement practices both in government and private sector. Empirical research was conducted on Sedibeng District Municipality's procurement unit practices, Small, Medium and Micro Enterprise development and the benefits of procurement to designated suppliers. The purpose was to determine the role that procurement policies play in promoting black economic empowerment. Eventually, a number of models and systems were recommended to improve procurement policies and procedures at Sedibeng District Municipality. These methods include: Management Assessment System; Realistic Objectives System; Departmental Evaluation Plan; Contract Progress Report Form; and Checklists. In the view of the researcher, a combination of these methods can assist to improve procurement policies and procedures.