PUBLIC FINANCE MANAGEMENT ACT IN COMPLIANCE WITH 
SUPPLY CHAIN MANAGEMENT OF THE SELECTED DEPARTMENT 
OF HOME AFFAIRS IN NORTH WEST PROVINCE 
I?.I"'---:~ ~ 
1 
,z· mer  MW MATLou 
~ :J e Orcid.org 0000-0002-2608-8683 
Mini-dissertation submitted in partial fulfilment of the requirements for 
the degree Masters of Business Administration at the Mafikeng Campus 
of the North-West University 
Supervisor: Prof Ravinder Rena 
Graduation ceremony July 2018 
Student number: 26871424 
DECLARATION 
I, William Maesela Matlou, declare that this study titled, "Public Finance 
Management Act in Compliance With Supply Chain Management of the Selected 
Department of Home Affairs in North West Province," is my own work carried out 
under the supervision of Prof Ravinder Rena. This mini-dissertation has not been 
submitted for any degree at any other university. All sources used in the study have 
been strictly indicated and acknowledged through references. 
20 November 2017 
Signature Date 
' 
I • 
ii 
ACKNOWLEDGEMENTS 
All Glory goes to the Mighty King of Glory, Lord of Lord and King of the light Jesus 
Christ and Might God who was able to keep us from falling . 
I devoted this opportunity to acknowledge the Mother of my two children , Tumi and 
Mosa Matlou, Ms Leah Mahlatse Matlou , who stood by me and supported me during 
this endeavour and period of my studies. 
Special thanks go to my Supervisor, Professor Ravinder Rena, for the patient and in 
depth guidance he gave during this tough period . I also wish to give a vote of thanks 
to my employer in affording me the opportunity to further my studies at the North West 
University. 
Not forgetting our fellow students or counterparts who keep us on the toes to continue 
to study even when studying is hard-hitting. 
Last but not the least; special thanks go to our North West University for good support 
and leadership provided to enhance our skills and abilities. 
I Thank You 
William Maesela Matlou 
iii 
ABSTRACT 
The drive of the study contrasts Public Finance Management Act (PFMA) in 
Compliance with purchasing unit of the selected Department of Home Affairs North 
West Government. Department of Home Affairs obtained poor Audit Outcome in the 
year 2014/2015 Financial year; moreover, the issue of non-compliance with legislative 
framework was prevalent as the main problem of the department's performance. 
The study explored supply chain management policies, processes, procedures and 
activities; relevant sources were consulted and reviewed to find out about different 
authors who have researched on the issues of non-compliance pertaining to supply 
chain management practices. 
The positivist method of approach used for the study employed a purposive sample 
group of 24 officials involved in Supply Chain Management (SCM) and the day to day 
procurement of goods and services to participates in this quantitative and qualitative 
study, using self-administered questionnaire, self-developed, open ended 
questionnaire and Likert scale to support the study. The descriptive and inferential 
techniques were adopted to probe further information from the study. 
The findings from the discussion reveal that the policies, process and guidelines are 
in place, however, there is no uniformity in terms of the application of such policies. It 
was found that the department does not completely comply with the Supply chain 
Management Activities .There is still a problem of segregation of duties and lack of 
supervision of the officials. The researcher recommends that SCM practitioners should 
be supported with additional skills trainings in Supply Chain area. SCM Practitioners 
should be registered with professional bodies for further monitoring in line with the 
latest developments in the field . The entity should be allocated enough financial 
resources to address the non-compliance issues. The researcher recommends further 
study to cover all the Department of Home Affairs (DHA) 9 provinces Office's in South 
Africa. The department has to comply entirely as an entity not limited to individual 
Provinces. 
iv 
KEYWORDS 
Supply Chain Management, Public Finance Management Act, Department of Home 
Affairs North West Province. 
V 
TABLE OF CONTENTS 
ACKNOWLEDGEMENTS ....... ...... ........ ...... ......... ....... .. .. ........... .. ...... .. .. ..... ........... ....... .. ... .... ii 
ABSTRACT .... .. .... ... ............ .... ...... ........ ... .... ........ ....... ... ..... .. .... ............. .............. ........ ...... ... iii 
LIST OF TABLES ... .. .... ...... .. .... ....... ... ........ ......... ......... ............... ............ ......... .... ................. ix 
LIST OF FIGURES ................. .................. .. .... ...... .. .... .. ..... ... ................ ..... .. ........ ....... .... ...... xi 
LIST OF ABBREBIATIONS ...... .. .. ... .... ... .... .. ... ........ ... ........ .. ........ .... .... ... .. ..... ..... ... .... .. .. .... .. xii 
LIST OF DEFINITIONS ...... ...... ......... .. ....... ... ........ ... .... ...... ... .... .... ... ....... ... ........... ...... .... .... xi ii 
CHAPTER 1 .......... .... ......... ........ ..... ...... ..... ... .... ........ ..... ..... ................. .. ................ ..... .......... 1 
INTRODUCTION .. ........ ... ........ ........... ...... .. .............. ... ............. .............. ...... ..... .... ..... .. ... ..... 1 
1.2 BACKGROUND OF THE PROBLEM .... ................ ........ .. ...... .. ...... ...... ....... .... 1 
1.3 PROBLEM STATEMENT ....... ... .. ....... ......... .. .... ..... ..... .... .. .................... ...... ... 2 
1.4 RESEARCH QUESTIONS/ RESEARCH OBJECTIVES ..... ... .. ..... .. .. ........... 3 
1.4.1 Key Research Question ...... ........ ......... .. ........ ...... ............ ... .......... ... .... .. .. .............. ........ 3 
1.4.2 Sub Quest ions .......... ....... .... ........... ............... ..... ......... ... ................. .... .... ........ .. ... ..... ... . 3 
1.4.3 Objectives ...... ..... ......... ........ .. ... ... ..... ........ ........ ..... .... ..... ...... ...... ...... ... .... ..... .... .. ...... .. .. 3 
1.5 IMPORTANCE AND BENEFITS OF THE PROPOSED STUDY ..... .. ............ . 4 
1.6 DELIMITATIONS AND ASSUMPTIONS ...... .. ....... ... ... ... ...... ... ........ ...... .. ....... 4 
1.6.1 Delimitations (Scope) .. .. ............ .... .. .... ...... ... ..... .... ... .. .. ... ..... .. .. ... .... ... .... .... ... ... .. ........ ... 4 
1.6.2 Assumptions. . ... .. ............... ....... ..... ........ .... ... .......... .... ..... .. ... ..... ...... .. ..... ... .. ... .... ....... .. .. 5 
1.7 CHAPTER LAYOUT ... ........ .......... .. ... ......... .. .. .... ... ......... ....... .... ............. ....... 5 
1.8 CHAPTER SUMMARY .. .... ... .... ... ... ........ ....... .... .... ... ... ... ... ... ....... ... ..... .. ... ... ... 6 
CHAPTER 2 .. ..... ..... ........... ... ....... ...... ...... .... ..... ... ....... ......... .... ............. .. ... ...... ....... ....... ....... 7 
LITERATURE REVIEW. ... .... ..... ...... ........... ........ .... ......... ..... ....... ..... ... .. ....... ... ....... ..... ..... .... . 7 
2.1 INTRODUCTION ................ .. .......... ..... ... ....... ....................... ..... ... ................. 7 
2.2 OBJECTIVES OF SUPPLY CHAIN MANAGEMENT FUNCTIONS .. ...... ... .... . 8 
2.3 LEGISLATIVE FRAMEWORK RELATING TO COMPLIANCE IN SCM AND 
PFMA ..... ... .......... ......... ........... .... .... ... ...... .... ...... ............. ......... ...... ..... ...... .. .......... 10 
2.3.1 Constitution of the Republic of South Africa (RSA) ....... .. .. ... ...... .. .. ..... .... ...... ...... ... .... 10 
2.3.2 Public Finance Management Act (pfma) ... ... .............. ...... .. ..... .... .. .. ... .. ...... .... .... ...... ... 11 
2.3.3 Preferentia l Procurement Policy Framework Act of 2000 (PPP FA) ... .. .. ...... ....... .. .. .. .. 13 
2.3.4 Treasury Regulations .... ....... ... ..... .. .. .... ........ .... ... ............ ..... .. .. .... .... .. ........ ... ........... ... 14 
2.3 .5 Supply Chain Management Policy Framework Compliance with PFMA .. ..... .... ... .... .. . 15 
2.3.6 Travel Management Policy in Compliance with PFMA .......... .... ....... ... .. .... .... .... ..... .... 16 
2.4 ROLE OF ACCOUNTING OFFICERS IN PFMAACT CONTEXT .......... .... .. 17 
vi 
2.5 ROLE AND RESPONSIBILITIES OF AUDITOR GENERAL IN PFMA 
CONTEXT ACT. ......... ................. ........ ........ ..... .... .... .... ... .... .............. ... ..... .. ........... ........... .. 18 
2.6 SUPPLY CHAIN MODELS .. .... ... .......... .... ............ ..... ...... .. ... .. ... ... ... .. .... .... .. . 19 
2.6.1 Demand Management ........ ................. .... .. ... .... .. ....... ... .. ...... ... ..... ... .. .. .... .... ... ........... . 20 
2.6.2 Acquisition Management ............................. .... .... ....... .. ..... ... ... .. ... .. .... ................ ... ..... 20 
2.6.3 Logistics Management .... .. ................. ...... .. .. .... .. ... ... ..... .... ....... ..... .... .... ................ .. .... 20 
2.6.4 Disposal Management ...... .............. .. .. .... .. ... .... .... .... ... .. ..... ............. ... ... .......... .. .......... 21 
2.6.5 Risk Management .. .. .... ................ ................ ... .... ... .. ... .. .. ..... ........ ..... .............. ... .. ....... 21 
2.6.6 Supply Chain Management Performance .... ....... ... .. .... ............... .. ........ ...... ........ ..... ... 22 
2.7 BID COMMITTEE SYSTEM/STRUCTURE .......... .... .. ........ ...... ........ ....... ..... 22 
2.7.1 Role Players in Bid Committee System ..... ... ... ....... ................ .. ... .......... ... .. .. ............... 22 
2.7.2 Bid Specification System (BSC) ..................... ... ....... .. .. ............ .. .. ... .......... .. ............... ... 23 
2.7.3 Bid Evaluation Committee System (BEC) .. ......... .... .... ...... ... ........................ ... .... ... .... .. 24 
2.7.4 Bid Adjudication Committee (BAC) ........ .. ..... .. .. ... ..... ... .......... .. .... .......... ..... ......... ..... .. 25 
2.7.5 Role of Secretariat in Bid Committee System .. .......... ....... ........ ... .... ......... ..... .... ......... 26 
2.8 CHALLENGES FACING THE SCM CONTRIBUTING TO NON-
COMPLIANCE ................ .. .......... ........... .... ....... .............. ..... .. ..... ... .. ... ..... .. ........ .. ..... .......... 26 
2.8.1 Lack of Proper Knowledge, Ski lls and Capacity ............ ..... ........ ................................. . 27 
2.8.2 Non -Compliance with the Policies and Regulations ... .... ... .. ..... .. ..... ...... ... ...... .......... 28 
2.8.3 Political and Corruption in Supply Chain ..... .. .. ... .. ............ ..... .. ....... ............ .. .. .. .......... 29 
2.8.4 Code of Ethics for Supply Chain Practitioner ...... .. ... ..... .. .. ....... ..... .............................. 30 
2.8.5 Accountability and Transparency .... ..... ..... ............ .. .. .. ..... ..... ..... .. ....... .. ..... .... ... .. .. ... .. 30 
2.8.6 Media Publicity .. .. .. .... ....... ...... ........ .. ......... .... .... ........ ... ....... .. ............. ........ .. .. .......... .. 31 
2.8.7 Poor Planning and Budgeting .. .................. ... ...... ................... .............. .... .... ................ 31 
2.8.8 Lack of Monitoring and Evaluation ...... ... .. ... ..... ....... ..... .. .. .... ......... ............ .................. ............ 32 
2.8.9 Organizational Culture and Compliance .... .... .......... ....... ... ............... ..... ... ........ .. .. ....... ............ 32 
2.9 CHAPTER SUMMARY ......... ... .. ....... ..... ..... ... .... ... ..... .... ...... .... ... .. .. .. .......... .. 32 
CHAPTER 3 ...... ....... .......... ......... ...... ................ ...... .... ............ ... ... ... ......... ...... ..... ... ...... .... .. 34 
RESEARCH METHODOLOGY ... .. ... ..... .... ....... ...... ... .. ...... ... .. ....... .... .... .. ........... .... .... ... ...... 34 
3.1 INTRODUCTION ... ....... ... ......... ... ................. ... ..... ...... .. .. ... ....... ...... ....... ... ... 34 
3.1.1 The Research Approach ... .. ... ..... .. ... ........... ... ......... .... ..... ... .... ... .. .... ...... ....... ............... 34 
3.2 RESEARCH DESIGN ...... .. ....... ... .. ... ..... ....... ............ ... .............. ..... ... .... .... .. 35 
3.2.1 Explorative Designed Approach ... .. ............... ..... ...... ... ... ..... .. ............... ....... ................ 36 
3.2.2 Conclusive Research Design .. .. ... .. ......... .... ...... ...... .... ..... .... ... .... ........... ....... .. ........ ...... 36 
3.2.3 Casual Inquiry .... ...... ......... ....... ... .... ........... ....... .... .. ............. ........ .. .. .... ...... .. .... ............ 36 
vii 
3.2.4 Panel Data ..... ..... .. .......... .... .......... ... ...... .............................. ........... .... ....... .. .. .... ... .. ..... 36 
3.3 RESEARCH METHODOLOGY .. ... ..... .. .... ... .... ...... .. ..... .... .. .. .. .. ....... .. .... ....... 37 
3.4 STUDY AREA .. ..... ............ ................. ......... .... ............ ............................. .... 38 
3.5 STUDY PARTICIPANTS .... ... ..... ..................... ... ................ ....... .... .. ...... .. .... . 39 
3.6 SAMPLE SIZE AND SAMPLING PROCEDURE .. .. .. .......... ....... .......... .. .. ..... 40 
3.7 RESEARCH INSTRUMENT ............. .. ... .. .. .... .. ...... .. ...... .... ............. ...... ........ 41 
3.8 DATA COLLECTION PROCEDURE .. .. ...... .. ........................ .. .. .. ...... .... ... ..... 41 
3.9 DATA ANALYSIS PROCEDURE ...... .. ...... ... ...... .. ...... .. ....... .. .................. .. .. . 42 
3.10 RELIABILITY ... ........ .... ...... ... ............ ....... ...... ...... .. .... ..... ...... ...... ............... .. 44 
3.11 VALIDITY .. .. ... .. .. .... ... ... ....... ... .... ... .. ........... ...... ... ... ........... ........ ..... .. ...... .. .... 45 
3.12 ETHICAL CONSIDERATION .. ................ ..... ...... ..................... ... ...... ............ 46 
3.13 THE RESEARCH PROCESS IMPLEMENTED IN THE STUDY ............. ...... 46 
3.14 CHAPTER SUMMARY ................ .. .... ... .... .. ......... .. ...... .... .. ...... .... ..... .. .. ........ 47 
CHAPTER 4 .......... ........ ........... .... ... ....... .......... .. ..... .... ..... ...................... ... ..... ....... .. ... .. .. ..... 48 
DATA ANALYSIS AND INTERPRETATION OF RESULTS ................... ..... .. .. .. .. ...... ...... ..... 48 
4.1 INTRODUCTION ..... .. ... .... .... ........ ........ ... ... .. ..... .... ... .. .. ... .... ...... ..... ....... ............ ... ......... 48 
4.2 DESCRIPTIVE STATISTICS ANALYSIS .. ...................................................... ........ .. .. ........ . 48 
4.3 INFERENTIAL STATISTICAL ANALYSIS AND SYMMETRIC MEASURES ...................... .. .. 60 
4.4 ANALYSIS OF RESULT USING QUALITATIVE PROCEDURE ........ .. .. .. ....... .. ............ ......... 65 
4.5 SUMMARY OF THE CHAPTER ........ .. ........................ .............. .. ......... .. ...... ........ .. .. .. ..... 68 
CHAPTER 5 ....... ................ ................... ...................... ... .. .. .. ................. ... .. .... ........... ... ....... 69 
CONCLUSIONS AND RECOMMENDATIONS ................................................ .... ......... ....... 69 
5.1 INTRODUCTION ............... .. .. ............... .. ..................................................... 69 
5.2 CONCLUSION .............................................................. .. ...... ......... .... .. ....... . 69 
5.2.1 Objective One (1): To clarify the role of Supply Chain Manager in terms of preventing 
non-compliance in the SCM ............................................... ... .... .... ... ........... .... ........... ..... ..... ... ... ... ... . 69 
5.2.2 Objective Two (2) : To determine the reasons of non-compliance in Supply Chain 
Management and PFMA ..... ..... ....... ...... ... .. ... .. ....... ... .. ... .. ..... .... ....... ... ........ ....... ................. ..... .. ... ... . 70 
5.2.3 Objective Three (3) : To determine the Adequacy of Skills, training, knowledge, of the 
stakeholders in Supply Chain and Finance .. .. .......... .. .. ........ .. .. .. .. .. .... ..... .... ....... ................................ 71 
5.2 .4 Objective Four (4) : To determine the resources needed to address non-compliance 
in Supply Chain Management ......................... ... .... ......... ... ..... ..... ......... ......... ...... ......... .... ..... .. ......... 71 
5.2.5 Objective Five (5) : To determine the actions needed to be taken by management to 
combat non- compliance in the Supply Chain Management.. ................ ...... .. ... .......... .. ................... 71 
5.3 RECOMMENDATIONS ............................. ....... .... ... ... .. .. ..... ...... .. ..... ... .. ...... . 72 
5.4 SCOPE FOR FURTHER RESEARCH ...... .............. .. .. .. .. .. .. .. .. .. ........ .. .... ..... 73 
viii 
5.5 REFERENCES ................................... ...... .. ......... ....... ...... ..... ....... ..... ..... ... .... ... .. .... ...... 74 
APPENDIX A: QUESTIONNAIRE .... .......................... ...... ...... ..... ......... ......... .......... ............ 79 
APPENDIX 8 : LETTER OF INFORMED CONSENT FORM ... ... .......... .......... ... .... ............... 84 
APPENDIXC: ETHICAL CLEARANCE LETTER .................... ................................. .... ... ..... 87 
APPENDIX D: PERMISSION TO CONDUCT RESEARCH ..... .. ........................ .. ..... .......... 88 
APPENDIX E: DECLARATION OF PROFESSIONAL EDIT ... ... ... ..... .... ... .... .. .. ..... .. .. .... ...... 90 
APPENDIX F: TURNITIN REPORT NWU ......... ........... .. ... .. .... ..... ... ..... ..... ....... .... ... ...... ...... 91 
ix 
LIST OF TABLES 
Table 3.1: Units of study ... ................... .. ................ .... ...... ... ..... ...... .. .. .. .... ....... .. .. ...... 39 
Table 4.1 : Gender wise classification of employees .............. .. .. .. ............ .. .. ..... .. .... . 48 
Table 4.2: Classification of the respondents based on their positions . .. ........ .. .. .. ..... 49 
Table 4.3: Ethnic group ... .. .. .. .. .. ... .. .. ........... .. ...... .. ..... .. ...... .. .. .. .... .. ........... ..... .. .... .. .. 49 
Table 4.4: Qualification of the respondents . .. .... .. .... .. ........ .. .. .. .... .... .. ...... .. .... ...... .. ... 50 
Table 4.5: Age of respondents ... .. .. .. .......... .............. .... ........ .. .... .. .... .. ...................... 50 
Table 4.6: Employees based on their experience .. .................. .... ........ .... .. .... .. .... .... 51 
Table 4.7: Official does not always comply with SCM Policies and Regulations . .. ... 51 
Table 4.8: Officials do not always comply with the travel management policies ...... . 51 
Table 4.9: Officials do not always comply with the PFMA. ........... .. ............ .... .... .. .... 52 
Table 4.10: The department does not have an effective SCM monitoring system . .. 52 
Table 4.11 : The department does not always have enough resources to address 
non-compliance in the SCM ... .... .. .. .. ...... .... .. ...... ....................... .... .......... 53 
Table 4.12: The department experience conflict of interest within SCM ....... .. ... .. ..... 53 
Table 4.13: Lack of adequate capacity . .. .................. .... .. .. .. .. .. ........................... .. .... . 54 
Table 4.14: Lack of training in the SCM ............................. .. .......... .. .......... ........ ...... 54 
Table 4.15: Employees were asked if there was lack of supervision ... .. .... .. .. .... .... ... 55 
Table 4.16: The department experience poor planning . .... .. .. .................... ...... ..... .. .. 55 
Table 4.17: The department experience lack of accountability ................................. 56 
Table 4.18 Three Bid Committee System exists in the Province . .... .. .... ........ .. ......... 56 
Table 4.19: Supplier database updated annually ......... .... ... .. .. ..................... .. .. ........ 57 
Table 4.20 : Bid Committee members do not understand their functions . .... .. ....... .. . 57 
Table 4.21 : Our suppliers always adhere to delivery dates ..... .... ........ .. ........ ........... 57 
Table 4.22: Suppliers always deliver according to our specification ... .. .. ... .. ... .. ....... . 58 
Table 4.23 Officials understand the role of supply chain management. ...... ....... ... ... 58 
Table 4.24: There is a segregation of duties in the supply chain management. ...... . 59 
Table 4.25 Officials in the SCM unit understand what must be done to prevent 
noncompliance in the section ..... ...... .. .... ...... ........ .. ........ .. .. .. .. .. .... .. .. .. ..... 59 
Table 4.26: All irregular, fruitless and wasteful expenditure are reported monthly in 
the SCM and Finance ........................... .. ... ............ .... .. ........ .. .. ..... ...... .... . 60 
Table 4.27: All creditors who supply goods and services are paid within 30 days . .. 60 
Table 4.28: Education and officials do not comply with SCM policies and 
Regulations .... ... ............ ... ..... ......... ...... ....... ......... ............ .. ....... ....... ....... 61 
Table 4.29: Gender and Official does not always comply with SCM Policies and 
Regulations .... .... .... ..... .... ......... .... ........ .......... ...... ................ .... ............... 62 
Table 4.30 Education and Official do not always comply with the Public Finance 
Management Act. ....... ...... ...... .. ...... ..... .. ......... ... .. .. ........ ....... ..... ........ ...... 63 
Table 4.31 Education and the department do not have an effective SCM monitoring 
system ....... .... ...... ... .. .... .. .... .... ...... ...... .. ......... ....... ... .... ..... .. ....... ........ ...... 64 
X 
Table 4.32 What is the length of your experience at the department and there is a 
segregation of duties in the supply chain management.. .. ................ ..... .. 65 
Table 4.33 Content Analysis ... .... ..... .. ........... ........... ........ ............ .... .... ... .... .......... ... 66 
xi 
LIST OF FIGURES 
Figure 2.1: SCM Elements ..... ... .... ....... ..... .......... .......... ... .......... .. .. ..... .......... ....... ....... .. .. .... 19 
Figure 2.2: Challenges facing SCM Management .......................... ... ......... ...................... ... 27 
Figure 3.1: Source (Creswell & Clark, 2007)Research design diagram ... .. ... ................. ..... . 35 
xii 
LIST OF ABBREBIATIONS 
ABBREVIATION MEANING 
ANCOVA Analysis of Co-variance 
ANOVA Analysis of Variance 
BAC Bid Adjudication Committee 
BAS Basic Accounting System 
BEC Bid Evaluation Committee 
BSC Bid Specification Committee 
BBBEEA Broad Based Black Economic Empowerment 
Act 
BEE Black Economic Empowerment 
CIDB Construction Industry Development Board 
CFO Chief Financial Officer 
CSD Central Suppliers Database 
DHA Department of Home Affairs 
ISM Institute For Supply Chain Management 
LCC Loss Control Committee 
PERSAL Personnel and Salary Administration 
PFMA Public Finance Management Act 
PPPFA Preferential Procurement Policy Framework 
Actof2000 
RSA Republic of South Africa 
SCM Supply Chain Management 
SPSS Statistical Package For Social Science 
TR Treasury Regulations 
xiii 
LIST OF DEFINITIONS 
CONCEPTS DESCRIPTION 
NON-COMPLIANCE Is defined as not acting in accordance to the 
law relating to finance and supply chain 
policies, which leads to the department not 
receiving a good audit report which causes 
challenge for service delivery.(ln this 
context) 
COMPLIANCE Is defined as acting in accordance with the 
law relating to f inance and supply chain 
framework.(ln this context) 
Compliance refers to acting in accordance 
with a legal obligation according Migiro and 
Ambe (2008:235) . 
DISCLAIMER AUDIT REPORT Is defined as the statement by auditors 
during the audit which does express an 
opinion on the financial position of the entity. 
It indicates that the department did not 
comply with the requirement of the auditors; 
therefore auditors were unable to form an 
opinion or express their opinion on the 
accounts of the department hence the 
disclaimer audit report is issued to the 
department. (Kachelmeier et al., 2016) . 
PURCHASING FUNCTION It deals with the activities that have to be 
performed to ensure that suppliers 
provide goods and services to the firm at 
the right time and the right place and at 
the best possible price Hugo et al. 
(2002:4) . 
xiv 
SUPPLY CHAIN MANAGEMENT According to Booth (2014:21), it is a series 
of activities that deliver on outcome to 
recipient , that recipient may be undertaken 
by a variety of entities, once again both 
internal. Refers supply chains include all 
activities recorded to the moving of 
commodities from the raw materials stage 
through to the product used by the end-
user. 
1 
CHAPTER 1 
INTRODUCTION 
1.1 OVERVIEW 
The purpose of the study was to determine Public Finance Management Act (PFMA) 
in Compliance with Supply Chain Management (SCM) of the selected Department of 
Home Affairs, North West Government. 
It is viewed that Non-Compliant work behaviour can increase the problem in any 
existing organizations, Karjalainen et al. (2009:245); there is growing interest between 
organizations such as scientists, practitioners who intend to investigate the patterns 
of such behaviour contracted by Karjalainen et al. (2009:245) .This study focuses on 
the supply chain management aspects. It looks mainly at the department concerned 
with reviewing the process of the component under the study; if the supply chain 
practitioners observe the processes when procuring goods and services, determine 
whether officials are adhering to the policies and legislation when procuring goods and 
service and relevant Procurement Committees are in place. 
This chapter also provides the background of the problem of the study which probes 
similar studies. Secondly the study proceeds in outlining the problem statement, 
providing the objective of the study, formulating research questions, highlighting the 
benefits of the proposed study to the selected organizations, delimitations, 
assumptions and providing the conclusion of chapter one. 
In order to put the study in to perspective the background provides the details of the 
problem below. 
1.2 BACKGROUND OF THE PROBLEM 
The Department of Home Affairs (DHA), North West Province, received a disclaimer 
from Audit Findings during the year 2014 and 2015 financial years, in which non-
compliance of legislative framework in Financial Management and Supply Chain 
Management was a predominant factor. 
2 
Therefore "Public Finance Management Act (PFMA) no 1 of 1999, section 45 (a) 
stated that Accounting Officers must put a Financial Management System and Internal 
Control System in place," hence the department experienced the challenges 
regarding the implementation of (3) Bid Committee Structure (BCS) which could have 
an impact on the compliance in the Supply Chain Management framework. 
1.3 PROBLEM STATEMENT 
The Department of Home Affairs (DHA) North West Province experienced a disclaimer 
as a result of Audit Findings during the financial period 2014-2015 in which non-
compliance of legislative framework in financial management and supply chain 
management was a predominant factor. During 2014-2015 as reflected in the Annual 
report, "Auditor general detected goods and services with a transaction value of above 
R500, 000 were not procured through a normal procurement procedure", which 
contravenes PFMA Act section 38 (1) .Reflected in the Annual Report of Department 
of Home Affairs 2014-2015 financial period . 
Non-compliance was identified starting with lack of a Supply Chain Bid Committee 
Structure, which entails of Bid Specification Committee, Bid Evaluation Committee and 
Bid Adjudication Committee, resulting in poor supply chain management and 
compliance. The second problem was inadequate implementation of some element of 
supply chain model such as lack of systematic reliable database system for rotation of 
suppliers, non-compliance with Travel Management Policies where the employees 
were not adhering to the policies, which resulted in unauthorised, irregular and 
wasteful expenditure. 
Therefore non- adherence to the supply chain management policies led to the 
department contravening , Public Finance Management Act (PFMA) number 1 of 
(1999) , as well as the Preferential Procurement Policy Framework Act of (2000) . 
Meanwhile the provincial procurement committee was not functional to evaluate and 
take action on the matter of non-compliance. Management attempted to send officials 
to the trainings and workshops by conducting in-house workshops during extended 
broad management meetings with hope for improvement. The management in 
attempting to resolve these matters further issued letters of non-compliance to the 
3 
responsible officials, yet no progress was made as the department still received poor 
audit report. 
This study seeks to investigate why management failed to implement reasonable 
control measures resulting in repetitive non-adherence to the PFMA and SCM unit 
within the department in the public sector as identified by the Auditor General. This 
research hopes to assist in finding a solution to this problem. The researcher needs 
to learn about the outcome, to be part of the solution of the problem . The research 
questions and research objectives have been developed to assist in addressing this 
problem. 
1.4 RESEARCH QUESTIONS / RESEARCH OBJECTIVES 
1.4.1 Key Research Question 
What are the reasons for non-compliance with PFMA in the SCM unit and how should 
management address it to ensure effectiveness? 
1.4.2 Sub Questions 
a) What is the role of the Supply Chain Manager in the prevention of non-
compliance in the supply chain management unit? 
b) What are the reasons for non-compliance in the Supply Chain Management 
and Finance unit? 
c) Do supply chain practitioners have the necessary skills? Did training provide 
the required skills in supply chain management? If not why not? 
d) What resources are needed to address non- compliance in the Supply Chain 
Management and Finance unit? 
e) What actions should be taken by management to improve upon non -
compliance in the Supply Chain Management and Finance unit? 
1.4.3 Objectives 
a) To clarify the role of Supply Chain Manager in terms of preventing 
noncompliance in the Supply Chain Management unit. 
b) To determine reasons for non-compliance with SCM and PFMA Acts. 
c) To determine the existence of adequate skills, training , knowledge, of the 
stakeholders in Supply Chain and Finance. 
4 
d) To determine the resources needed to address non-compliance in supply chain 
management. 
e) To determine the actions needed to be taken by management to eliminate non 
- compliance in the supply chain management. 
1.5 IMPORTANCE AND BENEFITS OF THE PROPOSED STUDY 
a) To assist Home affairs department in North West in obtaining clean audit reports . 
b) Ensuring that the department becomes compliant with the legislative framework 
within Finance and Supply Chain unit. 
c) This study will benefit the suppliers, consultants, contractors and unit, in rendering 
efficient and effective service to the department, at the right cost, at the right 
material price, and delivered at the accurate lead time. 
d) Ensuring that all interested parties, stakeholders, employees and Management of 
DHA, value compliance by addressing noncompliance and making budget 
available to address noncompliance issues on matters when it matters most. 
e) Making interested parties aware that addressing non-compliance is not a once off 
matter but is continuous in every growing organisation; and addressing 
noncompliance is not limited to adhering to rules and regulation issues but also 
emphasising behavioural issues. 
1.6 DELIMITATIONS AND ASSUMPTIONS 
a) Delimitations refer to, what is included and what is not included in the study. 
b) The scope of the study refers to the parameters under which the study takes 
place. 
1.6.1 Delimitations (Scope) 
a) What is included: The purpose of the study was to assist in improving 
compliance in the selected department in North West relating to public finance 
and supply chain management. 
b) The study is conducted in the selected department of North West based in the 
Provincial Office. 
c) The scope of the study include supply chain officials, Finance officials and 
Director of Finance within the parameters. 
5 
1.6.2 Assumptions 
a) It is assumed that participants will answer the questionnaire honesty and 
factually, since all information provided will be verified afterwards. 
b) It is assumed that participants will respond honestly and be knowledgeable 
since the selected population comprises the relevant people under the study. 
Majority of the officials are working in the finance and supply chain 
management activities on a daily basis. Managers are making decisions based 
on the knowledge acquired for finance and supply chain matters. 
c) It is assumed that the solution to the problem of the study will have a positive 
influence in addressing even problems not included in the study. 
1. 7 CHAPTER LAYOUT 
The study consists of five chapters outlined below 
a) Chapter 1: This chapter provides the preface; statement of the problem, 
objectives pertaining to the scope, the importance of the study, delimitations, 
assumptions and the summary. 
b) Chapter 2: Literature review: This chapter provides detailed objectives of 
SCM in respect of public and private sector, policies framework relating to SCM , 
roles and responsibilities of Accounting Officer and of Auditor General in the 
context of PFMA and SCM; the chapter covers the Supply chain models, Bid 
committee systems and challenges that causes non-compliance in the SCM . 
c) Chapter 3: Research methodology and design: Chapter 3 incorporated 
detailed description of the research design strategy and its justification thereof 
; definition of research methodology; study area , population study, sampling 
size and sampling procedures, research instruments; data collection 
techniques ; data analysis technique ; Reliability and validity , Sample size as 
well as research process incorporated in the study. 
d) Chapter 4: Data analysis and Results: Offer the breakdown of the findings 
and the results of data collected. The outcomes are therefore analysed and 
interpreted using simple descriptive, inferential methods and content analysis. 
Justification of mixed method approached is provided thereof. 
e) Chapter 5: Conclusion of the study with recommendation: This chapter 
highlighted the findings of data coUected , conclusions are drawn as compared 
6 
to the research objectives and the scope and working suggestions for and 
recommendation highlighted thereof. 
1.8 CHAPTER SUMMARY 
The chapter emphasises challenges that confronted the department in 2014 to 2015 
financial period in the past as highlighted by the Auditor General (AG) findings calling 
investigation to determine matters of compliance in respect of supply chain 
management prescripts and PFMA within the department. The problem statement has 
indicated that there is non-compliance of legislative framework in the SCM. The 
research questions have been highlighted. The importance, benefits, assumptions of 
the study and the chapter layout were outlined. 
The next chapter will further expand the first chapter, which comprises of series of 
literature studies pertaining Supply Chain Management process from different authors, 
the objectives of the supply chain management, compliance on the side of the policy 
framework and challenges that causes non-compliance within the Supply Chain 
Management component. 
7 
CHAPTER 2 
LITERATURE REVIEW 
2.1 INTRODUCTION 
In the previous chapter which reflected the background, the purpose of the study, 
problem statement, and other crucial concepts were clarified . The purpose of this 
literature review is to discover the work that has been done relating to the problem 
statement Brynard and Hanekom (2006), which in this study refers to Public Finance 
Management Act No 1 of 1999 (PFMA), in compliance with the supply chain process 
within the department. The approach sought for the literature review has been to scan 
and browse academic journals and articles on the search engine registered on the 
NWU library, as outlined by Saunders et al. (2009: 85). 
The purchasing function is regarded as the most important function in every functional 
organisation. This is understand by Ameyaw et al. (2012:55) Stated "50- 70% of the 
national budget after personal emoluments is procurement related". Therefore, it is 
paramount to maintain compliance when purchasing goods and services. 
The researcher probes whether Public Finance Management Act in compliance with 
Supply Chain Management has been adhered to by officials within the Department of 
Home Affairs in the North West. The review explores the general and primary 
objectives of the supply chain management process. It deals with the legislative 
framework in line with "Public Finance Management Act number 1 of 1999, 
Constitution of the republic of South Africa 1996, Preferential Procurement Policy 
framework of 2011 , Treasury Regulations, Supply Chain Management Policy of the 
Department of Home Affairs and Travel management policy of the Department of 
Home Affairs" . It works into the role and responsibilities of Accounting Officers and 
Auditor general in line with the Constitution and PFMA. Further discussion of literature 
is based on the SCM Models which is demand management, acquisition 
management, logistics management, risk management and supply chain 
management performance. 
8 
The literature review contains views on the Bid Committee structure or system, which 
entails, Bid Specification Committee, Bid Evaluation Committee and Adjudication 
Committee as per Accounting Officer guidelines. The review also covers challenges 
facing the supply chain management which contributes negatively to non-compliance 
in Supply Chain and PFMA. 
The objectives of Supply Chain Management have been discussed below. 
2.2 OBJECTIVES OF SUPPLY CHAIN MANAGEMENT FUNCTIONS 
The following objective tools adapted by Hugo et al. (2002:8) . Underpin purchasing 
functions reflected in private and public arena. 
a) "To supply the entity with a flow of materials and services to meet 
its current and expected future needs". 
b) 'To ensure steadiness of supply by maintaining effective 
relationship with existing sources and by developing other sources 
of supply either as alternatives or to meet emerging or planned 
needs". 
c) "To buy proficiently and sensibly, obtaining by ethical means the 
best value for every rand spent" . 
d) "To maintain sound pleasant relationships with other functional 
areas and internal customers, providing information and advice as 
necessarily to ensure the effective operation of the organization as 
a whole". 
e) "To develop staff, policies, procedures and organizational structures 
that will ensure the achievement of purchasing objectives while 
minimising administrative costs". 
f) "To maintain an optimum balance of inventory that would ensure 
the desired level of customer services while minimising costs 
associated with the service levels". 
g) "To maintain and develop the quality of purchased products and 
services as well as internal service delivery by implementing quality 
assurance programmes within the organization with external 
suppliers". 
9 
h) 'To contribute to the development of entire business strategies by 
providing strategic supply inputs based on the monitoring of the firm 
supply environment and by ensuring strategy implementation 
throughout all the supply activities of broad business strategies of 
the entities". 
i) "To manage supplier base to ensure the availability of the supplier 
during the purchasing process. This may create a good relationship 
between the suppliers and the entity for future requirements of 
goods and services". 
j) "To develop the appropriate strategies to sources the key 
commodity to avoid the risks associated with non-availability and 
costs are limited". 
k) "To foster inter-functional relationships by, example, contributing to 
multifunctional teams and by providing outstanding customer 
service to the internal customers of the supply function". 
I) "To support the overall objectives of the firm by integrating supply 
objectives with corporate objectives while still pursuing the 
operational objectives of supply management". 
m) "To ensure that a timely, cost-effective and comprehensive 
information system is in place that will form the basis of all internal 
decisions related to supply and that will also support the information 
systems of the supply chains in which the organizations may be 
involved". 
n) "To obtain the optimum supply of goods and services from the market 
out there in terms of: quality, timeliness, cost while at the same time: 
minimising risks, accomplishing socio-economic objectives-
including maximising competition and maintaining integrity", Pauw 
et al. (2002:229) . 
According to the "National Treasury (2004:9) and Supply Chain Management guide 
for accounting officers/authorities; there are four major objectives of the Supply 
Chain Management which include the following :" 
a) "To transform Government Procurement and Provision practices into 
an integrated Supply Chain Management function". 
10 
b) "Introduce a systematic approach for the appointment of 
Consultants". 
c) "Create a common understanding and interpretation of the 
preferential Procurement Policy". 
d) "Promote the consistent application of best practices thought 
Government's Supply Chain". 
However, not all the objectives listed by any organizations are easily attainable; hence 
it is good to lay down objectives that provide direction to the firm . If any factors affect 
any firm in attaining their objectives, hence there are regulatory frameworks that 
govern institutions protecting them from non-compliance with the objectives of the 
supply chain . The regulatory frameworks in the level of non-compliance with the 
supply chain management are discussed by different authors below. 
2.3 LEGISLATIVE FRAMEWORK RELATING TO COMPLIANCE IN SCM AND 
PFMA 
2.3.1 Constitution of the Republic of South Africa (RSA) 
"The constitution is the supreme law". Chapter 1 section (2) of the Constitution. 
It is assumed all acts relating to financial management must be subject to the 
constitution of the RSA. All citizens including financial officials, Supply Chain 
Management Officials (SCM) Chief Financial Officer (CFO) , Accounting 
Officers and other role players must abide by or uphold the constitution of the 
country. All these officials are expected to take accountability and uphold the 
constitution . Chapter 3 ,S (40) ( 1 ) of the constitution passed in RSA in 1996 
created three spheres of government, which is National government, Provincial 
government and Local government. These Government spheres were created 
to render service to the people of South Africa. Chapter 13 S (217) (1 ) of the 
Constitution stipulates that procurement should be done by a supply chain 
management system that is Fair, equitable, transparent, competitive and cost 
effective. 
11 
Chapter 10 s(195(1) of the constitution delivers public administration and 
management in all three spheres of government should be effective and 
efficiency in terms of the use of resources as well as being economically viable 
and accountable. The Constitution exhibited a pivotal role in setting up the 
doctrines of a sound financial management in the public sector arena. 
Therefore, Constitution that gives a basis to the values to General Recognised 
Accounting Principles (GRAP), uniform treasury norms and standards. Set 
internal control and operational procedure, borrowing, guarantees, 
procurement and omission of national and provincial revenue funds and further 
more. 
Chapter 2 S (33) (1) constitution also provides an administrative act. The 
constitutions further outlines the South African past, where it provides 
safeguard and protects individuals against abuse of power by the officials of the 
government. The section provides the, values and principles as set out in the 
Constitution . The constitution gives effect to the Public Finance Management 
Act as explained below. 
2.3.2 Public Finance Management Act (PFMA). 
Public Finance Management Act (Act No.1 of 1999) PFMA is regarded as one 
of the most significant pieces of legislation passed by the parliament in the 
South African government. The Act promotes good financial management in 
order to exploit service delivery through the effective and efficient use of limited 
resources. 
PFMA , "To regulate financial management in the national government and 
provincial governments; to ensure that all revenue, expenditure, assets and 
liabilities of those governments are managed efficiently and effectively; to 
provide for the responsibilities of persons entrusted with financial management 
in those governments; and to provide for matters connected therewith ". 
"Further concession (Bolton, 2007) indicates that the Act grants procurement 
responsibilities of accounting officers within the framework of the relevant 
legislation, policies, norms and standards. Objectives of the Public Finance 
Management Act include the following": 
12 
a) To modernise the system of financial management in the government 
department. 
b) It is to enable the government officials, Managers to manage but, at the 
same time, be held accountable. 
c) It is to eradicate waste and corruption in the use of public resources. 
The Public Finance Management Act of 1999, gives effect to sections 
213,216,217,218 and 219 of the Constitution of the Republic of South Africa 
(Act 108 of 1996) for the National and Provincial spheres of Government. These 
sections required national legislation to establish National Treasury norms and 
standards to prescribe measures to ensure transparency and expenditure 
control in all spheres of governments, procurement and oversight over the 
various National and Provincial Department revenue funds. 
It is agreed that PFMA objects to create a culture of performance by hiring 
Managers to manage, and at the same time holding officials answerable for the 
utilisation of allocated resources in del ivering services. However, Fourie 
(2007) , argued that PFMA moved from their effort in terms of the outputs and 
responsibil ities, instead to the rule-driven approach of the old Exchequer Acts. 
Further, the Act indicates that there are still many cases of poor financial 
management and many factors affecting public financial management and 
accountabil ity. In the other perspective, Fourier (2007) displays that PFMA as 
a policy document is well written , but its implementation and enforcement are 
not satisfactory. 
The researcher on the contrary believes that PFMA is the Alpha and Omega or 
is the Bible of the public sector officials to use in performing their 
responsibilities. This implies that the failure of the officials to comply with the 
Act will result in non-compliance in terms of the Annual Audit Report. The 
Implication is production of poor accounting records. There is no way that 
PFMA has lost its meaning, instead it is the officials who are not applying the 
Act as required. This conceded by Xhati (2015) stating that all officials within 
the department are required to comply with the Public Finance Management 
Act , in order to provide effective services; managers who have the required 
knowledge are in a good position to implement PFMA. The PFMA will be 
complemented by Preferential Procurement Act as explained below. 
13 
2.3.3 Preferential Procurement Policy Framework Act of 2000 (PPPFA) 
"Act" "means a procurement policy contemplated in section 217(2) of the 
Constitution"; "means the Preferential Procurement Policy Framework Act No 5 
of 2000, according to Hlakudi (2013) . The PPPFA Act was adopted to regulate 
preferential procurement in government in order to accelerate the award of 
procurement opportunities to companies that are historically disadvantage. 
Hlakudi (2013), indicates that as result of inconsistence or non-compliance with 
the PPPFA 2000, the new preferential procurement regulations (2011) were 
introduced to attempt to merge the two policies. Further, indicates PPPFA Act 
as an attempt to encourage transformation in companies by incorporation all 
the elements of the preferential procurement system". 
South Africa has made some significant changes in the regulation of 
procurement in 2011 , in terms of the preferential procurement policy Act. Its 
procurement systems were subjected to the Republic's Constitution . 
Regulatory frameworks within the constitution and the PPPFA (Act 5 of 2000) 
were established. These Frameworks required the Accounting Officers and 
Accounting Authorities, through PFMA (Act 1 of 1999), to conduct their 
procurement processes within the rules. 
According to PPPFA, an organ of state must determine its preferential 
procurement policy and implement it within the following framework": 
a) "A preference point system must be followed". 
b) "80/20 point scoring system, up to 50 million". 
c) "80 are for points and 20 are for specific goals which are BEE level". 
d) "For the rand value of RO to R2000 is for petty cash one quotation can be 
used". 
e) "For the rand value of R2000 to R30 , 000 applies that there is no strictly 
tender process". 
f) "For the rand value of R30, 000 to R1000000 strictly tender process must 
be followed , normal tender process must be followed by this formula 
below". 
g) "90/10 point scoring system, above 50 million". 
14 
''Ps = points scored for price of tender under consideration". 
"Pt = Rand value of offer tender consideration". 
"P min= Rand value of lowest acceptable tender" . 
The researcher discussed Treasury Regulations as it is also important for 
officials to comply with Treasury regulations which is the application of the 
PFMA described below. 
2.3.4 Treasury Regulations 
According to Tshamaano (2012: 13), Treasury Regulations intend to deliver 
the mandate to reputable systems of provisioning and procurement system. 
SCM was developed and promulgated for this reason , and further indicates 
Accounting Officer or Accounting authority of the institutions in the 
establishment of SCM units, which includes training of SCM practitioners, 
acquiring of goods and services, disposals and letting of state ethical standards. 
The Treasury Regulations are the instructions issued by the National Treasury 
applicable to government department indicated in the Section 76 of PFMA. 
Those instructions may not be limited to the following: 
a) "Any matter that must be prescribed for departments in terms of this Act" . 
b) "The recovery of losses and damages". 
c) "The handling of, and control over, trust money and property". 
d) 'The rendering of free services;" 
e) "The writing off of losses of state money or other state assets or amounts 
owed to the state;" 
f) "Liability for losses and damages and procedures for recovery". 
g) "The cancellation of variation of contracts to the detriment of the state" 
h) "The settlement of claims by or against the state" 
i) "The waiver of claims by the state" 
j) "The remission of money due to the revenue fund , refunds of revenue 
fund , refunds of revenue and payments from the revenue fund , as an act of 
grace" 
k) "The alienation , letting or other disposal of state assets; and". 
I) "Gifts or donations by or to the state". 
15 
"The National treasury may take regulations or issue instructions applicable to 
departments concerning the following as prescribed in section 76 PFMA". 
a) "The charging of expenditure against particular votes". 
b) "Fruitless and wasteful , unauthorised and irregular expenditure." 
c) 'The treatment of any specific expenditure." 
d) "Vouchers or other proofs of receipts or payments, which are defective 
or have been lost or damaged". 
e) "Financial management and internal control ". 
f) 'The determination of a framework for an appropriate procurement and 
provisioning system which is fair, equitable, transparent, competitive and cost 
-effective;". 
g) "Facilitation of the appointment of the audit committee". 
According to Ireland and Webb (2007) " the strategic supply chain continues to 
be adopted by organizations as the medium for creating and sustaining a 
competitive advantage" . 
The researcher conceded with the regulations and views of other researchers 
that the regulations provide guidelines but it is officials who need action to 
comply with the policies and regulations. 
This is supported by outlining the supply chain management policy as explained 
to the following discussions. 
2.3.5 Supply Chain Management Policy Framework Compliance with 
PFMA 
The document gives effect to section 217 of the constitution where it states 
that the organ of the state must acquire goods and services in a manner that is 
fair, equitable transparent, competitive and cost effective as envisage in the act" 
.This is conceded by Ambe (2009:428) stating that by adopting SCM Policy is 
to ensure uniformity in bid and contract documentation and options as well as 
bid and procedure standards, among others to promote standardization of the 
policy documentation. 
The policy must comply with the PFMA and Treasury regulations and 
instructions regarding SCM , other applicable instructions in terms of the PFMA. 
16 
The policy need to comply with the PPPFA, Broad Based Black Economic 
Empowerment Act (BBBEEA) . It should pursue specific preference, including 
socio-economic objectives through a preference point system for BEE, in 
accordance with the PPPFA and BBBEEA. It should include the implementation 
of efficient and effective supply chain management as an integral part of 
financial management as per Supply chain management guidelines) . 
The policy should apply to a particular government institution or an entity. Pauw 
et al. (2002:230) conceded that all government institution should implement and 
develop, document and enforce internal procurement practices and policies. 
Further indicates that there are a number of issues which managers should take 
in to account when introducing internal procurement practices and policies 
which include the following : 
a) "All aspects of procurement must be seen to be ethical and honest". 
b) "Strong and clear accountability arrangements must be in place". 
c) "Stringent transparency requirements must be met". 
d) "Procurement must be open to competition ". 
e) "Procurement must be fair and impartial". 
f) 'The interests of taxpayers, suppliers and customers must be paramount-
they are usually paramount to the people". 
g) "Infringement reaction procedures must take place quickly and decisively". 
The supply chain management framework also includes the adherence to the 
travel management policy as outlined in the following discussions. 
2.3.6 Travel Management Policy in Compliance with PFMA 
The Travel Management Policy is intended to provide cost effective standards 
of travel that are consistent in terms of policy. The policy also includes 
guidelines on the hiring of conference venues services, travel and subsistence. 
All travellers in the organization are expected to comply with the Travel 
Management Policy provisions when scheduling business trips . All travel 
request forms must be completed in full and authorised by the delegated official. 
No booking shall be made for travel related services when a request form was 
not approved. According to "section 8 of the PFMA (Act 1 of 1999)", subsection 
17 
"8.2 an official of an institution may not spend or commit public money except 
with the approval (either in writing or by duly authorised electronic means) of 
the accounting officer or a properly delegated or authorised officer". Managers 
must delegate the responsibility of authorizing to other levels/officials when they 
are not available to physically authorize the travel request. 
Prior to approval of the travel request form both the traveller and the person 
authorizing must ensure that budget is available for the requested travel related 
services. In a case where budget is not available for required travel services, 
shifting of funds from other items should be done and finalized prior to the travel 
request being sent. 
All requests must be submitted to supply chain management office within the 
prescribed period. The policy also outlines the procedure on the emergency 
request other than poor planning . 
All non-compliance such as no shows, in the bookings, amount exceeding the 
cost of accommodation or any extras not covered by the Travel Management 
Policies must be recovered in terms of the PFMA Section 76( for further details 
refers to Treasury Regulations Chapter 12). The role of Accounting Officers in 
line with Public Finance Management Act is outlined below. 
2.4 ROLE OF ACCOUNTING OFFICERS IN PFMA ACT CONTEXT 
The roles and responsibilities of the Accounting Officers are outlined in section 
38 of PFMA in line with the public sector. According to Fourie (2007:737) the 
Act provides for the internal control procedures in order to limit fraud , incorrect 
allocation, irregular, unlawful , futile and inefficient expenditure". The key 
responsibilities of the Accounting Officers are outlined as follows in line with the 
PFMA Act Chapter 5 s (38:37). 
a) "Must maintain effective, efficient and transparent systems of financial and 
risk management and internal control". 
b) "Develop a system of internal audit under the control and direction of an 
audit committee complying with and operating in accordance with 
18 
regulations and instructions prescribed in term of section 76 and 77 of the 
PFMA". 
c) "Must develop an appropriate procurement and provisioning which is fair, 
equitable, transparent competitive and cost-effective". 
d) "Develop a system for properly evaluating all major capital projects . 
e) Economic use of resources". 
f) "Must prevent unauthorised irregular and fru itless and wasteful expenditure 
and losses resulting from criminal conduct". 
g) "Manage available working capital ". 
h) "Manage and safeguarding of assets". 
Fourie (2007:737) further indicates the responsibilities of accounting officer 
are to develop internal control in the following procedures: 
a) "Financial delegation which determines the level of a rank and the amount 
that a person can authorise for disbursements". 
b) "Must include fraud prevention plan". 
c) "Financial internal control procedures captured in a manual, including all 
relevant policies". 
d) "Management of supply chain procedures indicating the procedures to be 
followed for procurement and the functioning of the bidding committee". 
Therefore we discuss the role and responsibilities of Auditor general in line with 
PFMA Act in the following paragraphs. 
2.5 ROLE AND RESPONSIBILITIES OF AUDITOR GENERAL IN PFMA 
CONTEXT ACT 
Auditors are appointed "in terms of section 58(1) of the PFMA. They must perform 
the functions of office as Auditor in terms of section 20 of the public accountants 
and auditors Acts of 1991(Act no 80 of 1991 )" . 
The duties of AG are outl ined as follows in terms of the Act (PFMA) . 
a) "Must have the access at all reasonable times to the accounting records, 
including all books of the government institutions". 
b) "May investigate whether there are adequate measures and procedures in the 
internal control of the public affairs". 
19 
c) "Must express an opinion on the financial statements of the government 
accounting records". 
d) "Must look at the materials aspects of the non-compliance relating to the 
records of the entity". 
e) "Must report to the executive authority any irregularities may occur during the 
audit". 
Fourie (2007) indicates that the drive of the internal audit work is of assistance to 
Accounting Officer includes proficiency and competence, and by emerging 
references for enhancement or augmentation . According to Fourie (2007) the audit 
committee assesses the usefulness of the internal audit measures and assesses 
their discoveries, appraisal of the prevailing internal control measures. "National 
Treasury section 3, (1) 1O " outlines the functions of the audit committee as follows. 
a) "Determine the effectiveness of the internal control systems". 
b) "Determine the effectiveness of the internal audit function". 
c) "Determine the risk areas of the institution operation to be covered in the 
scope of internal and external audit". 
d) "The institutions must comply with legal and regulatory provisions." 
e) 'The activities of the internal audit function , including its annual work 
programme, coordination with the external auditors, the reports of significant 
investigations and the response of management to specific 
recommendations". 
2.6 SUPPLY CHAIN MODELS 
Supply chain management models comprise various elements linked in a specified 
process as shown in Figure 2.1 . 
• • • 
••  
•• •  
_ au~v a..--. .-.aran»-.MC• ___________ _ 
DATA•A• , . 
Figure 2.1: SCM Elements 
Source: Ambe and Badenhorst-Weiss (2012:11003). 
20 
Elements of the supply chain are discussed below as derived from the literature: 
2.6.1 Demand Management 
The demand management is the first stage of the supply chain management process; 
it involves needs identification, procurement plan linked with the strategic plan of the 
organisation and budgeting process. According to the National Treasury (2004:25) it 
is regarded as the essential discipline in emerging unsurpassed practice within supply 
chain management. The Accounting Officer of a particular institutions responsibility; 
assist Accounting Officer with the needs assessments, it links the budgets with the 
requirements of goods and services, it ensures that needs form part of the strategic 
planning process, it identifies Economic order quantity, Lead times and commodity 
analysis. 
2.6.2 Acquisition Management 
The acquisition process management outlines the buying process, evaluation of bid 
documentation, awarding of tenders and issuing of purchasing order as conceded in 
by Ambe and Badenhorst-Weiss (2012:11006). National Treasury (2004:11) describes 
the concepts acquisition management as traditionally, almost all the focus of 
procurement activity has been given to this stage. Acquisition Management unit 
ensures that bids are evaluated in accordance to the bids published criteria , all 
relevant cross functional members of the committee must be represented . The unit 
ensures that all relevant bids documentations are properly completed and signed. All 
relevant thresholds are adhered to example goods below R2000 including vat only 
one quotation is sourced between goods of value of R2001 to R30, 000 three 
quotations must be attached without strictly looking at the tender process. When goods 
are sourced from threshold of R30001 to R1000, 000 tender procedures must be 
strictly observed. 
2.6.3 Logistics Management 
Logistic management is the process of receiving , certifying goods, rejecting non-
compliance goods and recording stock as part of supply chain process. National 
Treasury (2004:86-88),defines logistic management as to connect, to coding items, 
setting of inventory levels, placing of orders , receiving and distribution or warehouse 
21 
management, expediting orders, transport management and vendor performance. It 
is recommended that there must be a unit specifically dealing with logistic 
management issues within the organization . 
2.6.4 Disposal Management 
The management of disposal is done through appointing disposal committee, 
disposing redundant goods, unserviceable obsolete goods, and creating databases of 
disposed items. It's recommended that the Accounting Officer appoint a disposal 
committee for each organization. According to National Treasury (2004:89) , disposal 
is the final process when an institution needs to do away with unserviceable, 
redundant or obsolete movable assets. The committee identifies such items and 
decentralise them in one place, determines the cost effective methods of disposing 
and making endorsement to the Accounting Officer. The committee can recommend 
transferring such goods to another institution as a method of disposing or disposing of 
them by way of auction , or disposing them in a way of destroying assets. In case of 
disposing computer equipment, the relevant Department of Education has to be 
notified to make preparations for free transfer of such assets to educational 
institutions. 
2.6.5 Risk Management 
According to Ambe and Badenhorst-Weiss (2012:11006), Risk Management is the 
process of identifying risk within the Finance and Supply Chain field, by determining 
whether to avoid the risk, accepting the risk or transfer the risk and development of 
risk management plan. This was conceded in by National Treasury (2004:9) that, Risk 
management recognises that all the operations of an institution comprise some 
element of risk. Management should determine an acceptable level of risk in line with 
strategic goals of the organization to allow the risk. Further definition of risk is provided 
by Migiro and Ambe (2008:233) , stating that risk refers to unintended or unexpected 
outcome of a decision or action. Similarly Naidoo (2002:117), defines risks as 
uncertain events which , left unchecked, could have negative effect on the performance 
of the department and Indicates that risk management can be viewed as, 
understanding the departmental objectives, identification of risk, assessing of risk and 
monitoring and evaluation of risk. In case of Supply Chain Management it is necessary 
to look at the pricing factor of goods and services, currency fluctuations and rates, 
22 
detection of fraud and corruption in awarding of contracts and tenders and 
identification of irregular expenditure and recover the money in terms of the Public 
Finance Chapter ten. 
2.6.6 Supply Chain Management Performance 
The monitoring process adopted by the National Treasury (2004:91) and each 
department has customised the policy to suit their needs to implement supply chain 
performance". Supply chain performance determines whether the set or desired 
objectives have been attained. "Supply chain performance look at the issues such as 
, achievement of goals; compliance to norms and standards; saving generated , store 
efficiency, cost variance per item; contract breach , cost efficiency of procurement 
process, consistency with the policy, principle of co-operative governance as 
expounded in the constitution and economic disparities". Organization bid structure is 
discussed in the following topic. 
2.7 BID COMMITTEE SYSTEM/STRUCTURE 
The supply chain management unit function with the number of the bid committee 
systems to acquire goods and services as per Bid committee policy. All goods and 
services must contracted in accordance with the system that is fair, equitable, 
transparent, competitive and cost effective as per the legal regulation of public 
procurement in South African Constitution Section 217 Bolton (2009:58). 
2.7.1 Role Players in Bid Committee System 
a) End-user- is the person who initiates the request to acquire goods and service. 
b) Committee members from cross function team, Finance, Human resources etc. 
c) Accounting Officer, Head of Department or Chief Director. 
d) Programme /Cost Centre Manager: according to Pauw et al. (2002:67) 
manages the vote or budget which is projected to purchase commodity or 
render a services. 
e) Supply chain management unit/directorate 
23 
In terms of the PFMA every Accounting Officer or Accounting Authority must 
delegate officials within his/her institutions, to deal with supply chain 
management functions . National Treasury further instructs Accounting Officer 
to establish a separate Supply Chain Management unit within the office of that 
institution, Chief Financial Officer, to implement the institution supply chain 
management system. Component is accountable for Supply Chain 
Management functions . The unit also serve as secretariat during the bid 
committee administration . 
a) Chief Financial Officer: is selected as the chairperson of the bid committee 
system if there is no dispute. If there are disputes the Accounting Officer may 
appoint any person with the relevant expertise. 
b) Legal expert: Accounting Officer can appoint legal expert internally or 
externally to advice on the bid committee system. 
2.7.2 Bid Specification System (BSC) 
According to Bolton (2009:63) , the Bid Specification Committee (BSC) is responsible 
for the compilation and drafting of specification for the procurement of goods and 
service by the government entities. Bolton (2009) , indicates that BSC may also when 
appropriate include members who are external specialist advisors. The BSC 
committee must comply in line with the General Conditions of Contract and if the Bid 
is related to the construction it must also comply with the Construction Industry 
Development Board (CIDB) . 
Bolton (2009) proposed the following requirements in the compilation of the Bid 
documentation as required by the preferential procurement Act policy. 
a) "Bid documentation must declare any conflict of interest they may have in the 
transaction for which the bid is submitted". 
b) "Certificates stating that the bidder has no undisputed commitments". 
c) "Particulars of any contracts awarded to the bidder by an organ of state in the 
past 5 years and particulars with regard to any materials non-compliance or 
dispute regarding the execution of such contract". 
24 
d) "A statement whether it is expected that any portion of the goods and services 
will be sourced from outside South Africa and if so the portion will be transfer 
outside South Africa". 
e) "Specification must be drafted as unbiased". 
f) "In drafting the specification it must not create trade barriers in contract 
requirements". 
g) "Specification must prescribe a specific criteria , 80/20 or 90/10 point scoring 
system". 
h) "They must include the closing dates and briefing dates". 
The researcher supports the contents made by the author and in add ition the 
researcher indicates that the specification committee must be precise and clear, the 
chairperson must be an official from the Demand management division. Specification 
must be approved by the Accounting Officer or the committee with the delegation from 
the Accounting Officer as per Procurement Policy. The bid specification submit the 
written specification documentation to the bid evaluation committee for further 
consideration or stages. 
2.7.3 Bid Evaluation Committee System (BEC) 
The purpose of Bid Evaluation is to determine if the proposal received from the supplier 
adheres or complies with specifications and / or terms of reference and if such a 
supplier has the capability and skill to supply the goods/service as required . The bid 
highest on points, but not necessarily the lowest submitted price, should be selected 
for awarding of the contract as per procurement policy. 
According to Bolton (2009:67) ,The Bid Evaluation Committee (SEC) is responsible for 
the evaluation of bids submitted in response to a public invitation for bids. Bolton states 
that the committee must as far as possible; consist of officials from the departments 
requiring the goods or services and at least one SCM practitioner. Further indicates 
criteria as follows: 
a) ''The experience and track record of the bidder". 
b) "Technical knowledge and capacity of the bidder". 
c) ''The possession of appropriate licenses and permits". 
d) ''The ability of the bidder to comply with the delivery schedule". 
25 
e) "The bidder record of business ethics and integrity". 
f) The capacity to perform the work. 
g) Qualifications and competence of the personnel of the bidder. 
However Lai et al. (2004), provide another consideration different from Bolton (2009) 
by outlining the following procedure for bids evaluations in displaying the following 
important aspects. 
a) "Degree of response to the bid documentation". 
b) "Construction organization design". 
c) "Firm honour and competence". 
d) "Bid prices and the amounts used for materials". 
e) "Range for reducing cost" . 
f) "Comprehensive evaluation and examination". 
g) "Level of qualification of the project manager". 
The bid evaluation committee is responsible to make recommendation to the bid 
adjudication committee in the form of a report as per procurement policy. 
2.7.4 Bid Adjudication Committee (BAC) 
The bid adjudication committee is the highest decision body for purchasing of goods 
and services or any other project embarked by the department in terms of the 
Preferential Procurement Policy Framework Policy Act of 2000 as amended in 
2011 .Bolton (2009) . 
The bid adjudication committee must consider the report and recommendations of the 
Bid Evaluation Committee; this will depend on the delegations of the committee, Bolton 
(2009:78), further indicates that if the committee cannot make the final award they will 
make recommendation to the Accounting Officer or Provincial Manager if it is in 
provincial Department, in municipality it will be Municipal Manager. The committee 
comprised of senior officials, and the chairperson is the Finance Director or Chief 
Financial Officer in the bigger department. If the chairperson is not available the 
committee is eligible to elect the interim chairperson. In considering the report, the bid 
adjudication committee must act independently from the bid evaluation committee. 
26 
The PPPFA Policy allows the members in the committee to reject or recommend 
further on the decision brought from the Evaluation committee reports, and the bid 
adjudication , must look at the following issues to award the contracts 
a) Consider the reports from Bid Evaluation Committee which includes. 
b) Date of meeting, bid number and description. 
c) Date of closure. 
d) List and number of bids received on closing date. 
e) List of qualifying bids. 
f) List of disqualifying/rejected bids and reasons thereof, 
g) Recommendable bid and reasons thereof. 
h) Sheets indicating points obtained. 
i) Ensure that recommendations of the secretariat must be clear and to the point. 
j) Attachment of specific Act should be the reference from the Acts. 
2.7.5 ROLE OF SECRETARIAT IN BID COMMITTEE SYSTEM 
Role of secretariat from SCM unit as per Supply Chain Management policy must 
include the following: 
a) Convey bid meetings. 
b) Keep and record the minutes of the Bid adjudication committee. 
c) Keep the register. 
d) Is without the voting power in awarding the bid or tender. 
e) Ensure that the chairperson signs all the adopted minutes. 
f) File all the minutes. 
2.8 CHALLENGES FACING THE SCM CONTRIBUTING TO NON-
COMPLIANCE 
The discussion below seeks to propose the challenges causing non-compliance in 
Supply Chain in line with Public Finance Management Act as supported by literature 
review in Figure 2.2 below. 
27 
Figure 2.2: Challenges facing SCM Management 
Lack of Skils 
Non compl iance with SCM Policies 
Political and Corruption 
Code of Ethics 
Accountablity and Transparency 
Media Publicity 
Lack of Monitoring & Evaluation in 
SCM 
Source: Researcher own design 
Figure 2:2 Pyramid displaying challenges facing the SCM leading to non-compliance 
with PFMA and SCM policy. Sources primary data 
2.8.1 Lack of Proper Knowledge, Skills and Capacity. 
Lack of knowledge, skills and capacity is suggested as one of the key factors to look 
at as contributory reasons for non-compliance with SCM and Finance unit , according 
to Ambe and Badenhorst-Weiss (2012:250) , who also stated that "skills and capacity 
shortages have been identified as the single greatest impediment to the success of 
public procurement in south Africa". 
Ambe and Badenhorst-Weiss (2012) in the same article imply that "many SCM actors 
in the South African public sphere have attended a number of training workshops on 
Supply chain management, but they still lack the appropriate knowledge for proper 
implementation." This has been argued by Maccarthy (2006:4) who contends that 
there is a lack of capacity and knowledge by Supply chain management actors to 
handle procurement processes that have led to bad governance. 
The researcher agrees with the views of McCarthy. However the researcher views the 
word actors as a subjective statement assigned by both authors, because most actors 
are seen not people who are originally appointed as role players of Supply chain 
28 
management, instead the word role players should be imputed . Role players in Supply 
Chain must take full responsibility. 
Ameyaw et al. (2012:63) , recommend training of procurement officers, suppliers, 
contractors and consultants in order to have an understanding in procurement 
process. Yet Tukamuhabwa (2012:38) , argues that if the workforce is not adequately 
educated in procurement matters serious consequences which will result in breaches 
of codes of conduct. This suggests that if the training and workshops are conducted 
without transferring of skills, it is regarded as fruitless expenditure which contravenes 
Public Finance Management Act (PFMA) Number 1 of 1999; therefore management 
should take rational steps to prevent these transgressions in supporting the views of 
both authors. 
Matters of non -compliance have been mentioned by Boer and Telgen (1998) " non-
compliance problem affects not only the third world countries but also countries in the 
European Union"- Further, the view of Gesuka and Namusonge (2013:3) , contend 
that compliance in public procurement is still a major issue, . When there is lack of 
skills, knowledge and capacity these will contribute to "non-compliance with the 
policies and regulations, as discussed below. 
2.8.2 Non -Compliance with the Policies and Regulations 
Non-compliance with the policies and regulations within Finance and Supply Chain 
Management on its own derails the commitment of compliance, are the views 
supported by Matthee (2005) and Ambe and Badenhorst-Weiss (2012:250) . Matthee 
(2005) agreed that non-compliance with the policies and regulations such as lack of 
suitable bid committee system, the use of controversial suppliers, approval of bids for 
improper explanations and not adhering to procurement thresholds are sufficient 
reasons to warrant non-compliance in Supply Chain and Finance. 
According to Gesuka and Namusonge (2013:6) suggests that "compliance with the 
formal elements gives an indication of knowledge of the rules" . Both authors also 
maintain that public purchasers will comply with the rules if they perceive them as 
clear. On contrary Fiorino and Bhan (2016:2) , agree that lack of familiarity with the 
procurement rules resulted lack of compliance. 
29 
Supply Chain Management unit is governed by policies and regulations to ensure that 
supply chain management process is followed appropriately. However this unit is more 
vulnerable to non-compliance of such policies in place. Ambe and Badenhorst-Weiss 
(2012:250) again note that there are insufficient controls and procedures for evaluation 
of bids, nomination of committee members not aligned to Acts ; and insufficient 
motivation for deviations from SCM procedures. 
Therefore, when there is no compliance in policies and regulations, Political and 
corruption factor tap in as reasons as outlined below. 
However Dlamini and Ambe (2012:285) , "argued that the obtainability of policies and 
procedures do not lead to compliance, since in certain situation policies become 
unclear, fragmented or nonspecific". Further indicate that policies sometimes may 
deprive the organization an opportunity for a new innovation, as people are afraid to 
do the new things with the fear of contravening the policies. 
2.8.3 Political and Corruption in Supply Chain 
These study conducted by Ameyaw et al. (2012:55) identifying various bottlenecks 
to the Ghana public procurement law in launching the "Public Financial Management 
Reform Programme" in order to expand financial management in Ghana, discovered 
the Political Factor as a solution to influence decision in implementing proper financial 
management. 
Some of the bottlenecks are identified in the review by Annual Reports of 2005, 
according to Ameyaw et al. (2012:56) , are "inadequate funding , deficient staff strength , 
and logistical limitations as barriers to the smooth operations of the authority". 
However, in addition to that "Political interference with the procurement processes 
poses a challenge to the implementation process and public procurement reforms 
reported by World Bank report", Ameyaw et al. (2012:58) and corruption in public 
"procurement of goods and services" contribute to "non-compliance with supply chain 
process". 
Again "lack of transparency and accountability were recognized as a major threat to 
integrity in public procurement as suggested by OECD 2007a, Gesuka and 
Namusonge (2013:7) , and little effort has been made to combat corruption, by the 
30 
Philippine government when they established inter-Agency Committee in 1997 to act 
as Umbrella and organising body, Jones (2007:18). 
The researcher agrees that corruption may cause non-compliance in public 
procurement, but laments that corruption is not found only in government institutions, 
but equally is not revealed in private sector and other structures of public services . 
Therefore the researcher does not fully agreed with Gesuka and Namusonge (2013) , 
views. The following discussions are on code of ethics as advanced reasons for non-
compliance by different authors. 
2.8.4 Code of Ethics for Supply Chain Practitioner 
The officials in Supply Chain Management need to adhere to the code of professional 
conduct and ethics when dealing with the suppliers and performing their duties as 
Supply chain practitioners. According to Karjalainen et al. (2009:245) , contend with 
that, a purchaser may have a vested interest in a supplier, and the purchaser may 
place his own interests above those of his employer. Bolton (2006) , demonstrated that 
"the organs of the state must procure goods and services in a manner which is fair, 
competitive, equitable, cost effective and transparent". 
The Public Finance Management Act allows the officials in Finance and Supply Chain 
to exercise accountability when executing their functions as discussed below. 
2.8.5 Accountability and Transparency 
The main purpose and objective of the Public Finance Management Act number 1 of 
(1999) is to promote accountability when dealing with public funds. The officials in 
Supply Chain in Home Affairs are accountable to the Head of procurement and the 
Head in procurement is accountable to Director Finance and the Director is 
accountable to Provincial Manager, as goes further below. 
Provincial Manager is accountable to Director General in the National Office of Home 
Affairs up to the level of Parliament which is accountable to the public. Therefore 
according to Gesuka and Namusonge (2013:3) , due to the colossal amount of money 
involved in government procurement and the fact that such money comes from the 
public there is need for accountability and transparency. To seek improvements to the 
accountability and administration of the procurement function , the government expects 
department and agencies to exploit fully procurement's potential to add value to the 
31 
program delivery, purchasing Australia 1995 as conceded Kokor (2015). The 
researcher asserts that the issue of accountability involves every official within the 
area of his or her responsibility. This is conceded Booth (2014:2) , stating that the 
supplier may be responsible for the service but the procuring organization is always 
going to take accountability. For example, of British Airways in August 2005 when it's 
catering suppliers, reduced work in an effort to reduce UK running costs. This led to 
900 flights being grounded, 100,000 travellers delayed resulting in an estimated loss 
of 45million dollars .Lack of Accountability and transparency may attract the media 
and Publicity as discussed below as the factor. 
2.8.6 Media Publicity 
Tukamuhabwa (2012:36), states that, "The media play a critical role in corporate 
compliance". And added that in Malaysia, wide publication of tenders in the media 
such as newspapers and websites could help reduce corruption by increasing 
transparency and participation , thereby enhancing public procurement compliance 
Tukamuhabwa (2012) , maintains that when media exposure reduces the incidence of 
wrongdoing through press coverage that highlights instances of wrongdoing . 
This researcher argues that non-compliance exists irrespective of the media exposure 
as people need the limelight from the media coverage, and the media also needs to 
be transparent and accountable for the issues reported and need not take sides on 
the issues involved in non-Compliance In the Supply Chain and Finance. 
2.8.7 Poor Planning and Budgeting 
Budgeting and planning for material goods has been a major challenge. Ambe and 
Badenhorst-Weiss (2012:251 ), indicate that poor planning and budgeting have also 
affected the implementation of Supply chain management and PFMA. Therefore, this 
is supported as there is such a need to link the demand with the budget to address 
non-compliance by Supply Chain Manager. According to Thai (2009) , since the 
procurement process takes long, it is important to encourage the planning as soon as 
the institutions have identified their needs. Whereas Hugo et al. (2002:16) argue that 
planning for SCM must take in to consideration the external factors or the environment 
such as customers, suppliers and other officials in supply chain management. 
32 
2.8.8 Lack of Monitoring and Evaluation 
According to Lopez-Acevedo et al. (2010) , good monitoring and evaluation provide 
a basis for sound governance and accountability, by public policies in supply chain 
management. They further indicate that lack of monitoring and evaluation is 
associated with the absence or the poor presence of a control environment which 
makes it difficult to implement and comply with the supply chain management process. 
This is conceded to Stemele (2009) , stating that there is lack of monitoring and 
evaluation as needed. 
2.8.9 Organizational Culture and Compliance 
Organizational or corporate culture is the set of values, norms, beliefs, attitudes and 
assumptions that may not have been expressed but shape the ways in which people 
behave and the way things are completed ( Gesuka and Namusonge (2013:7) . These 
authors conceded that the way departments or organizations are practising the culture 
may have a great influence and as well play a dominant part in adherence with the 
process and related results . They believe that rules and regulations in supply chain 
management are influenced by the culture. Therefore, organizational culture affects 
public procurement compliance. 
2.9 CHAPTER SUMMARY 
This chapter has provided argument's from different authors on the matters of non-
compliance mentioned in the literature study as well as detailed objectives of Supply 
Chain Management as per policies, how legislative frameworks govern compliance in 
SCM , with specific reference to the Constitution of the Republic of South Africa, 
followed by overview of Public Finance Management Act and other Acts relating to 
Supply Chain Management. The Supply Chain Management Policy in line with the 
PFMA and the Constitution , National Treasury regulations relating to provisioning and 
acquisition of goods and services, has all been discussed. 
This chapter also covers the role and responsibilities relating to Accounting Officer 
and the Auditor General in line with the PFMA contexts. The section on the Supply 
33 
Chain Models which includes; demand management, acquisitions management, 
logistic management, disposal management, risk management and supply chain 
management performance as per Accounting Officer guidelines and Procurement 
Policy. This chapter outlines the bid committee system or structure, which includes bid 
specification, evaluation committee, adjudication of bids and the role of secretariat in 
the bids from the literature reviewed . 
This chapter is concluded by reviewing the different challenges facing supply chain 
management which could lead to non-compliance with Public Finance Management 
Act and other related Acts subsequent to the Supply Chain Management. The next 
chapter is Chapter three; provide discussion on the research methodology. The 
chapter outlined methods, process, procedures and techniques of how this study has 
been undertaken. 
34 
CHAPTER 3 
RESEARCH METHODOLOGY 
3.1 INTRODUCTION 
This chapter explains how the research problems have been studied while perceiving 
why particular research designs, strategy and techniques are often prescribed. The 
chapter furthermore describes how the study has been undertaken including other 
matters of importance such as sampling strategy, research instrument, how data 
collection procedure unfolds, data analysis, validity and reliability and a summary of 
the research design. 
The intention is to look at the various methods that apply in the research under 
study. Research methodology illustrates the system, process, procedure or strategy 
that can be used as described in the chapter. The research methodology is related to 
the research questions, objective as well as problem statement. 
3.1.1 The Research Approach 
Research can be conducted in various manner and incorporate both theoretical 
and methodological approaches as conceded by Burney (2008:6) . 
The generic research approach in the scientific research is the deductive and 
inductive research approaches, according to Bryman (2014) . 
The deductive theory denoted the most shared view of the nature of the 
relationship between theory and research. Based on what is known about a 
particular domain, in theory and practice the researcher deduces a hypothesis 
that must then be subjected to empirical scrutiny, whereas inductive research 
theory, as the researcher infers the implications of his or her finding for the 
theory that prompted the whole exercise. Research design strategy is 
discussed in the next paragraph. 
35 
3.2 RESEARCH DESIGN 
Research 
Design 
. I 
I 
Conclusive 
Exploratory Research 
Research designed 
Design 
I 
I 
I 
Descriptive 
Research Causal 
Research 
. 
I I 
Cross- Longitudinal 
Sectional 
Design 
Design 
I 
I I 
Single Cross Multiple cross 
sectional 
Design 
Design 
Figure3.1: Source (Creswell & Clark, 2007)Research design diagram 
Figure 3.1 displays different types of design strategy used by Creswell and Clark 
(2007) and also outlined by Bryman (2014:100) which are defined below. 
Saunders et al. (2009:595), describe research design as the general plans of how will 
the one go about in answering the research questions and the problem statement. 
Whereas,(Creswell & Clark, 2007:4) see research design as a plan of action whereby 
the philosophical perspective is linked to specific research methods depicted above in 
Figure 3. 1. They also see research design as a blueprint of how one anticipates 
conducting the research. 
The nature of the study undertaken by a researcher allow for qualitative or quantitative 
research approach, or with other methods explained below. 
36 
3.2.1 Explorative Designed Approach 
Exploratory research design tactic does not target to provide the final verdict 
irrefutable outcome to the researched questions and problem statement but 
simply discovers the research topic with the variable levels of profundity. 
According to Mouton and Marais (1988) , an explorative approach to research 
aids the research to get better understanding of the research problem or 
phenomenon. This research design is relevant to the study since the design will 
help the researcher to have a better understanding of the research problem. 
Explorative designed approach will help the researcher to explore and 
understand the level of compliance of Supply Chain Management in line with 
the PFMA Act framework. 
3.2.2 Conclusive Research Design 
Conclusive research design is characteristically proper and better planned than 
exploratory research . It is mostly used for study that is based on large 
representative and samples, and the data obtained are subjected to quantitative 
analysis approach. Conclusive research designs may either apply to descriptive 
or causal and descriptive designs and may be either cross-sectional or 
longitudinal study. Therefore, the researcher viewed this type of the design as 
not suitable for the type of the study needed in this research since the design 
represents a large amount of representatives , whereas the study is focused on 
selected and suitable qualifying officials suitable to response the research 
questions and the problem under study. 
3.2.3 Casual Inquiry 
Casual research strategy is normally used where a study is based on a single 
variable or factor. This study design is not suitable for the present study the 
study is looking at more than one variable, non-compliance as variable and the 
Supply Chain Management framework and Public Finance Management Act. 
3.2.4 Panel Data 
Panel data identified as longitudinal data or cross -sectional time series data in 
certain exceptional suitcases data is derived from a usually small number of 
populations over time on a usually large number of cross-sectional units like 
individuals, households, firms or governments (Bryman and Bell 2011 ). Cross-
37 
sectional approach research collects data at a single point in time, whereas in 
longitudinal approach, the researcher collects data over time, meanwhile 
longitudinal studies sometimes lasting many years. (Bryman and Bell 2011) . 
The benefit of longitudinal studies is that researchers are able to detect 
developments or changes in the characteristics of the target population at both 
the group and the individual level. The study can take the form of observations 
for a period of past years, whereas cross-sectional studies can be done more 
quickly than longitudinal studies. The researchers start with cross-sectional 
approach first and establish whether there are links or associations between 
certain variables. Both approaches are observational studies, where the 
researcher is able to record information about the problems under study without 
manipulating the environment. According to Bryman and Bell (2011 : 106) cross 
-sectional strategy allows the researcher to collect both the qualitative data and 
quantitative data and it is only probable to examine relationships between 
variables not causality, because the researcher cannot manipulate any of the 
variables. 
In this study the researcher used cross-sectional design as the key research 
design strategy. The research methodology is described below. 
3.3 RESEARCH METHODOLOGY 
The research methodology outlines how the research is done or conducted. According 
to Saunders et al. (2009:595), Methodology is the theory of how research should be 
undertaken, including the theoretical and philosophical assumptions upon which 
research is based and the implications of these for the method. There are different 
sorts of research methodology which are quantitative, qualitative research method or 
mixed method . This study uses both qualitative approach and quantitative approach 
as it is applicable to answer the problem statement and the research questions. The 
study seeks to explore more knowledge based on human perspective and opinions of 
the individuals. That applies to qualitative method. 
The qualitative research approach is outlined by Bryman (2014:31) , as emphasising 
words not numbers, using inductive approach, building theory, rejecting the practices 
38 
and norms of the natural scientific model and of positivism in particular, in promoting 
social reality. This is concerned by Bryman (2014) states that qualitative methodology 
means that there is no manipulation of numbers. The method describes people's 
opinion. 
(Brynard, 2006) uphold that qualitative methodology permits the researcher to know 
the people personally by seen their daily struggles. Brynard (2006) further indicate 
that methodology focuses on the process of research and decision that the 
researchers have to take to perform the study. 
The study uses in part quantitative approach which is deductive reasoning . According 
to Bryman (2014) quantitative research approaches tend to : 
a) "Adopt a deductive approach to the relationship between theory and research 
and therefore the emphasis is on testing of theories". 
b) 'The methods incorporate the practices and norms of the model of the natural 
sciences and of positivism in particular". 
c) "Embody a view of social reality as an external objective real ity". Therefore the 
researcher uses this approach as some of the questions are analysed using 
Statistical Package For The Social Science (SPSS Version24) , Which requires 
measurement, standard procedures. The numbers in this regard simplify the 
reporting patterns. The other challenge on hand is that there is no specific 
software to assist the research in coding except SPSS. 
3.4 STUDY AREA 
The study was carried out in the Department of Home Affairs in North-West -
Mafikeng Provincial Office. The respondents were chosen carefully based on their 
expertise in the relevant units under study within the area of their functions . 
39 
3.5 STUDY PARTICIPANTS 
The target participants of this study are the Provincial Manager's Office (PMO) 
consisting of Supply Chain Practitioners (3) , Procurement Committee Members (6) 
Finance Officers(2) , Expenditure officer (1) , Transport officers (2) Assistant Directors 
(3) , Deputy Director (1) , Director (1) , Chief Director (1) , Personal Assistant to 
Director (1) and Interns (4) . 
The total number of participants of the study is 24 officials, 16 females and 8 males. 
According to Johnston (2014) a population is the total set of items or people that a 
researcher is interested in studying .The population under study is made up of who 
possess the characteristics of the dynamics and technicalities occurring under SCM 
unit. Table No: 3.1 below reflect the summary of the units of study. 
Table 3.1: Units of study 
Division/Unit Designation Number Gender 
Finance & Support Director Finance 1 Male 
Personal Assistant 1 Female 
Supply Chain Unit Assistant Director 1 Male 
Senior 2 Female(2) 
Provisioning 
Officer 
1 Female 
Provisioning Clerk 
Procurement Office Managers 5 2 Males I 3 
committee (Civic services) Females 
Members District Coordinator 1 
Female 
Finance Unit Assistant Director 1 Female 
Senior State 2 Male (2) 
Accountant 
State accountant 1 Female 
40 
Asset Management Assistant Director 1 Female 
Interns 4 Female(4) 
PMO office Chief Director 1 Female 
Transport Admin clerk 2 Males (2) 
Total units 24 
Source: Primary data 
3.6 SAMPLE SIZE AND SAMPLING PROCEDURE 
The researcher used purposive sampling technique (non-probability sampling 
technique) for data collection (Bryman and Bell 2011 ). The respondents were 
purposively selected based on their level of expertise, judgemental and characteristic 
suitable for this study. The main drive of purposive sampling was to focus on particular 
characteristics of the population. The target population includes Supply Chain 
Practitioners (3) , Procurement Committee Members (6) Finance Officers(2) , 
Expenditure official (1 ), Transport officials (2) Assistant Directors (3) , Deputy Director 
(1) , Director (1) , Chief Director (1) , Personal Assistant to Director and Interns (3). 
The total number of units of the study is 24 officials. The characteristics of the units of 
the study are 15 females and 9 males. 
The researcher also includes the use of Census as sampling strategy as this strategy 
looks at the expert opinions of the units of study, and employing both qualitative and 
quantitative approaches. Census is defined as examining the entire population 
according to Bryman (2014).This strategy is supported by Saunders et al. (2009) who 
states that Census is a suitable method advanced for the study because it enables 
the researcher to collect and analyses data from every possible population under the 
study. A census is a study of every unit, everyone or everything , under population. 
This strategy is suitable based on the population of the study, who are manageable in 
terms of the small number. All the population is derived from same area of the 
operation. 
41 
3.7 RESEARCH INSTRUMENT 
Research instrument are measurement tools designed to obtain data. (Bryman, 2014) . 
Structured open ended questionnaires were utilised as the main tool for the data 
collection for this study. The questionnaire was divided in to two parts. Section A is the 
personal information of the respondents and Section B includes both structured and 
open ended questionnaires. Section B 1 seeks to determine the reasons for non-
compliance in supply chain management and justification thereof, Section B2 sought 
to determine the role of supply chain management in order to prevent non-compliance. 
Sections B3 and B4 pursue to understand the training , needed for the supply chain 
management practitioners and explore strategies covering the policies, process and 
suggestions that can be used to improve supply chain management compliance. The 
responses were assigned weightings based on five point Likert scale (Strongly 
disagree 1, disagree, 2 not applicable 3, agree 4, and strongly agree 5) . 
The questionnaires were all distributed to the respondents on the 22 August 2017; all 
the respondents were informed to return the questionnaires on the 28 August 2017. 
All questionnaires were returned on the agreed time frame. The five officials were 
stationed outside the Provincial Office therefore, email was used to reach them and 
they did respond through by an email on the agreed time framework. 
3.8 DATA COLLECTION PROCEDURE 
"Questionnaires are General term including all data collection techniques in which 
each person is asked to respond to the same set of questions in a predetermined 
order" by (Saunders et al., 2009:599). 
The researcher did not use other methods such as interviews since the officials and 
management indicated that they would not be comfortable to provide full information 
when they are being interview due to fear of being interviewed. Therefore an 
introductory letter was written to Director Finance and support of Department of Home 
Affairs seeking the consent to undertake the study. The purpose of the study was 
42 
explained to the respondents with instruction to complete the questionnaires. 
Therefore the data were collected using questionnaire developed and distributed to 
the employees of the department responsible for Supply Chain Management and other 
relevant structures in Finance, involving 24 officials in the department. 
The researcher used self-administered questionnaires. Which is define as "data 
collection technique in which each respondent reads and answers the same set of 
questions in a predetermined order without an interviewer being present"(Saunders et 
al. , 2009:362) . Use of self-administered questionnaires was convenient because 
questionnaire were administered electronically using the internet. The respondents 
chose to respond back by email or print out the questioner and hand over personally 
or allowed the researcher to collect them in agreed time per individuals. 
The questionnaire was kept simple and straight forward to avoid confusion . The 
respondents were assured that the information collected would remain confidential 
and be the property of the university. This was implemented in order to gain first-hand 
information. All questionnaires were completed and returned by the respondents. 
3.9 DATA ANALYSIS PROCEDURE 
Data Analysis is the process or systematic application of statistical and /or logical 
techn iques to describe and illustrate, summarize and recap, and evaluate 
data.(Bryman, 2014) . In th is study the researcher will be using both qualitative and 
quantitative methods approach to analyses data to address the research problem 
statement and questions. 
The researcher used a thematic content analysis techniques (TCA) , which allowed 
the researcher to get hidden and deep information from the respondents for analysis 
(Wilbraham, 1995). 
The technique allowed the researcher to get deep information from the respondents 
to address the research problem . Analysis procedure went as follows. Summarizing 
the key points and words, analyzing data in tabling format and interpreting thereof and 
comparing data with the research questions and objectives. The completed 
questionnaires were checked and edited to ensure the completeness, consistency and 
readability. Thereafter the information was arranged in formats to be analyzed easily. 
Descriptive analysis or Univariate analysis was used for quantitative analysis data. 
43 
Univariate analysis refers to the analysis of one variable at a time. The researcher 
used frequency table, providing the count or number of respondents and the 
percentage belonging to each of the categories for any type of variable (Bryman, 
2014) . 
The quantifiable data that apply to quantitative methods from the questionnaires were 
coded in a "Statistical Package for Social Sciences" (SPSS version 24). 
Other methods used include inferential statistics, Phi and Cramer Method (Bryman, 
2014) . The concept is explained below. 
"Inferential statistics are techniques that allow the researcher to use these samples to 
make generalizations about a particular phenomenon or populations from which the 
samples were drawn"(Bryman, 2014) . It is therefore pivotal that the sample accurately 
represents the population. The process of achieving this is called sampling . "Inferential 
statistics arise out of the fact that sampling naturally incurs sampling error and thus a 
sample is not expected to perfectly represent the population". Inferential statistic 
comprised of the following methods.(Bryman, 2014) 
a) "Cross-tabulation" 
b) "Pearson correlation coefficient" 
c) "Analysis of variance (AN OVA)" 
d) "Analysis of Co-variance ( ANCOVA)" 
e) "Chi-square Test" 
f) 'Hypothesis Testing" 
g) "Estimation ( using confidence intervals)" 
h) "T-test" 
The researcher used Cross- tabulation methods on the above methods; "Cross 
tabulation is a simple, easily understandable first step in such quantitative data 
analysis. Cross -tabulation displays the distribution of one variable within each 
category of another variable, it can also be termed as bivariate distribution, since 
it shows two variables at the same time (Bryman, 2014) . 
Phi and Cramer Method defines the relationship between two variables. This 
statistics is normally accompanied by statistician called eta which expresses the 
level of association between the two variables. 
44 
3.10 RELIABILITY 
Reliability is the extent to which a test would give consistent results if applied more 
than once to the same population under the study, (Bryman, 2014).The use of 
reliabil ity applies to both quantitative and qualitative research methods. Methods 
implies mainly quantitative research study where great prominence is positioned 
under recapping , testing and coming up with the identical outcomes and types of 
reliability studies.(Bryman, 2014). 
a) "Stability - In this case the reliability is measure of consistency over 
time and over samples which are the same or similar". 
b) "Equivalence- is the form of test which is equivalent to a test that yields 
the same results , or where the researcher made the same interpretations 
from a specified set of data (inter-rater reliability)" . 
c) "Internal consistency, in this study is where the test is administered 
once only and reliability established by splitting the test in half, and hoping 
the respondent will score similarly on both shares of the test (split half 
method)". 
When the two researchers independently studying the identical situation . Following 
comparison were found by the Author.(Bryman, 2014) . 
a) The researchers will choose to make observations using the same population 
on different occasions, to determine if they will get the same result. 
b) Determine if the respondents were requested to fill the questionnaire for second 
time if response will be the same from the same population . In this instance the 
result may be not be the same suppose the respondents were asked of their 
experience and qual ification for the following year, surely changes may be 
incurred. 
c) If one used the structured observations programmed, come up with the same 
outcomes. 
d) If the rel iability appears high the researchers come up with one conclusion 
e) Meanwhile conclusions are not the same investigations must be done to find 
out about the variances. 
f) Cronbach's Alpha rel iability is concerned with positive correlations. Method will 
be suitable when using quantitative researched method to address the research 
45 
questions and the problem of study .Information is reliable when the same 
amount of questions is asked and expects the consistent amount of answer. 
3.11 VALIDITY 
Validity is used in research studies to measure the quality of information provided by 
the researcher. Validity tells us whether an item measures or describes what it is 
supposed to measure or describe, (Bryman, 2014) .lnformation can still be reliable but 
only to find that is not valid . Example is that the information about the qualification and 
experience can still change when the test is repeated to the same population of the 
study in the time series studies. 
There are different types of Validity 
a) Criterion Validity is concerned with "degree to which a measure relates to some 
external criteria". (Bryman, 2014:26) .The validity refers the truthfulness of the 
information. 
b) Internal validity 
Accord ing to Bryman (2014:26) ,"internal validity is concerned with the question 
of whether a conclusion that incorporates a causal relationship between two or 
more variable holds water". Example, if one suggests X cause can we be sure 
that it is X that is responsible for the variation in Y and not some other variable? 
Internal validity raises the question: how confident can we be that the 
independent variable really is at least in part responsible for the variation that 
has been identified in the dependent variable"? 
c) External validity 
External validity explaining generalization on inferences specific to scientific 
research method, is normally based on the experiments validity. Example ; 
normally scientists use the animals like chimpanzee when they want to test 
whether a particular medicine can work in a human being , since by science 
we are likely to be like monkeys, in doing that the researchers will be 
experimenting . 
46 
d) Ecological validity 
Is type of research that involves or captures the real life or modern life styles of 
the people, based on people opinions, values, attitudes and knowledge that 
they have accumulated on the subject matter. 
3.12 ETHICAL CONSIDERATION 
The researcher received ethical clearance from North West University Research 
Department, to conduct research on determining non -compliance in supply chain 
management in, Department of Home affairs North West Province. The researcher 
also received a permission to conduct research under study. The research process 
has been summarised below. 
3.13 THE RESEARCH PROCESS IMPLEMENTED IN THE STUDY 
Table 3.2 display the layout applied of research process. It outline the study, research 
design strategy, population, sampling techniques, Data collection method, data 
analysis procedure, study limitation and Ethics. 
Table 3.2: Layout of the research process 
Study purpose To determine Compliance of PFMA in line with SCM 
Research design Descriptive and exploratory study 
Research approach Deductive and inductive approach Both methods 
Research strategy Cross sectional design strategy 
Population 24 officials in the department of home affairs 
Sampling strategy Purposive sampling, Census -
Assumptions Reliability and validity 
Data collection method Structured questionnaires and open ended questions 
Data analysis Descriptive and content analysis , SPSS 24 
Ethics Is achieved by informed consent , NWU ethics guidelines and 
confidentiality undertaken by the researcher 
Limitations The study is limited to Department of Home Affai rs in North 
West Province. 
Source: Adapted from (Ambe & Badenhorst-Weiss, 2012:188) 
47 
3.14 CHAPTER SUMMARY 
The structured questionnaires and open ended questions were applied to collect data 
from SCM practitioners and Management of Home affairs in Mafikeng provincial 
Office. The government department encounters non-compliance in supply chain 
management during the time of Audit. The researcher conducted the study in the 
department within his portfolio and requested the respondents to complete the 
questionnaire in order to determine the level of the compliance within the section. The 
study is concluded by explaining the important concepts such as reliability, validity and 
layout of the research process of the study. The next chapter is chapter Four 
comprised of data analysis and interpretation of the result, using descriptive, inferential 
and Cramer methods. 
48 
CHAPTER 4 
DATA ANALYSIS AND INTERPRETATION OF RESULTS 
4.1 INTRODUCTION 
This chapter highlights the analysis of data, interpretation and discussion of major 
findings based on the topic under the study. Data were collected using self-
administered questionnaire. The questionnaire was distributed to the 24 respondents 
within the Department of Home Affairs , North West Province. The respondents were 
carefully selected based on their expertise from Supply Chain Unit, Finance Unit and 
Procurement Committee Members from cross functional units in the Province of North 
West, Director Finance and Provincial Managers of the Province. 
A total of 24 questionnaires were returned , all were valid . This suggests that there 
were no invalid questionnaires. The analyses consist of descriptive analysis, inferential 
statistics analysis and Cramer V method. The analysis was compiled using the 
Statistical Package for Social Science (SPPS) Version 24, using the descriptive 
statistics in a table format and inferential statistics. 
The questionnaire was adopted in this analysis and the table subheadings provide 
significant meaning, to the data. 
4.2 DESCRIPTIVE STATISTICS ANALYSIS 
Table 4.1: Gender wise classification of employees. 
Gender Frequency PercentaQe 
Male 9 37.5 
Female 15 62.5 
Total 24 100.0 
Source: Primary data 
Table 4.1 indicates that 62.5% of the employees are female, while 37.5% of the 
employees are males. This implies that the demographic profile shows that more 
females than males participated in this application . 
49 
Table 4.2: Classification of the respondents based on their positions. 
Frequency Percentage 
Valid Chief Director 1 4.2 
Director 1 4.2 
Assistant Director 5 20.8 
Senior State 2 8.3 
Accountant 
State Accountant 1 4.2 
Admin Clerk 2 8.3 
Other 12 50.0 
Total 24 100.0 
Source: Primary data 
Table 4.2, indicates 50% of employees were occupying the other positions under 
Other category which includes, Interns, Senior Admin Officers in the Office of the 
Provincial Manager and local office Manager, at level 9 and 12 at the district office 
representing the Procurement Committee, 8.3% represent Admin Clerk, 4.2% 
represent state accountant, 8.3% represent Senior State Accountant, 20.8% represent 
Assistant Director, 4.2 % represent Director and Chief Director respectively. This 
implies that all the respondents have been equally representative and their 
professional inputs were measured in determining non-compliance in Supply Chain 
Management. 
Table 4.3: Ethnic group. 
Frequency Percentage 
Valid Black 21 87.5 
Coloured 2 8.3 
White 1 4.2 
Total 24 100.0 
Source: Primary data 
Table 4.3 indicates that the most group under organization employees are black, 
making 87.5 %; 8.3% of the coloured community and followed by 4.2% in the white 
category. It is found that there is no employee representing Indian community. The 
results indicate that there is still a need to balance the race in the next recruitment in 
so 
order to comply with the "Employment equity Act, No 55 of 1998". The Act promotes 
equal opportunity and fair treatment in employment. 
Table 4.4: Qualification of the respondents. 
Frequency Percentage 
Valid Grade 12 5 20.8 
Diploma 15 62.5 
Dei:iree 3 12.5 
Postgraduate diploma 1 4.2 
Total 24 100.0 
Source: Primary data 
Table 4.4, Indicates 62.5% have diploma, 20.8% have only Grade 12, 12.5% possess 
degree, while 4.2% have postgraduate diploma. It could therefore be concluded that 
majority of the employees have post matric qualification, this could help the 
department to use their expertise and knowledge to contribute in addressing non-
compliance in Supply Chain Management. 
Table 4.5: Age of respondents. 
Frequency Percentage 
Valid Below 25 years 1 4.2 
Between 25 to 40 11 45.8 
Between 40 to 55 8 33.3 
Above 55 4 16.7 
Total 24 100.0 
Source: Primary data 
Table 4.5, indicates that the ages majority of the respondents were between 25 to 40 
reflecting 45.8%, followed by age group between 40 to 55 years at 33.3 %, above 55 
age group with 16. 7 % and the smallest age group below 25 years at 4.2% . This shows 
that there is balance between the youth at the work place and the veteran or matured 
employee's .This means that the organization is in good position in terms of 
maintaining their work force. 
Table 4.6 below the results show that 41 .7% have 15 years and above, of work 
experience, followed by 29% of employees who have 5 to 10 years of experience, 
25% of employees have less than 5 years of experience and 4.2% of employees 
having 10 to 15 years. This shows that majority of the employees are having 
51 
experience above 15 years. These employees may be able to share their experience 
with the new employees to increase the capacity of their work in the supply chain 
management. 
Table 4.6: Employees based on their experience 
Frequency Percentage 
Val id Less than 5 years 6 25.0 
5 to 10 years 7 29.2 
10 to 15 years 1 4.2 
Above 15 years 10 41.7 
Total 24 100.0 
Source: Primary data 
Table 4.7: Official does not always comply with SCM Policies and Regulations. 
Frequency Percentage 
Val id Strongly Disagree 4 16.7 
Disaoree 8 33.3 
Not Aoolicable 5 20.8 
Agree 3 12.5 
Strongly agree 4 16.7 
Total 24 100.0 
Source: Primary data 
Table 4.7 indicates that 33.3% of employees disagree with the statement that 
employees do not comply with policies and regulations, while 16.7% strongly agree 
with the statement, another 12.5% agree, and 20.8% feel that is not applicable to them 
and 16.7 % strongly disagree with the statement. This contradicts the literature review 
where the literature indicates non-compliance of policies and regulations in supply 
chain management by officials. 
Table 4.8: Officials do not always comply with the travel management policies. 
Frequency Percentaoe 
Val id Strongly disagree 5 20.8 
Disagree 7 29.2 
Not Aoolicable 4 16.7 
Agree 5 20.8 
Strongly agree 3 12.5 
Total 24 100.0 
Source: Primary data 
52 
Table 4.8 indicates that the 29.2% of officials disagree with the statement of non-
compliance with the travel management policies , 20.8% of employees strongly 
disagree , whi le only 20.8% agree that there is non-compliance with the travel policy 
followed by 12.5% who strongly agree with the statement and 4% highlighted as not 
applicable to them. This implies that not all officials are complying with the travel 
policies even when the majority believe that there is compliance. The respondents in 
their justification believe that noncompliance occurred from emergency requests. 
Table 4.9: Officials do not always comply with the PFMA. 
Frequency Percentage 
Valid Strongly disagree 4 16.7 
Disagree 7 29.2 
Not aoolicable 4 16.7 
I• Agree 5 20.8 
Strong Agree 4 16.7 
Total 24 100.0 
Source: Primary data 
Table 4.9 ind icates that 29.2 % and 16.7% disagree and strongly disagree that 
employees are not complying with the Public Finance Management Act, wh ile 20.8 % 
and 16.7 % agree with the statement and only 16.7 % official's state as not applicable. 
Unfortunately the result controverts the findings of the "Auditor General of South 
Africa" in the Annual report of Department of Home Affairs 2014 and 2015 financial 
year period where non-compliance with the PFMA is the predominant factor. 
Table 4.10: The department does not have an effective SCM monitoring system. 
Frequency Percentaqe 
Valid Stronqly disaqree 3 12.5 
Disaqree 7 29.2 
Not Applicable 4 16.7 
Agree 8 33.3 
Strongly agree 2 8.3 
Total 24 100.0 
Source: Primary data 
Table 4.10, shows that 33.3% and 8.3% of employees trust that the organization does 
not have effective monitoring system in the SCM. This might be due to the lack of 
effective Enterprise Resources Planning System (ERP) used by Supply Chain 
53 
Manager to monitor the transactions in the section. Whereas 16.7 % and 12.5% believe 
that there is still monitoring apart from the ERP system. 
Table 4.11: The department does not always have enough resources to address 
non-compliance in the SCM. 
Frequency Percentage 
Val id Strongly disagree 4 16.7 
Disagree 8 33.3 
Not applicable 3 12.5 
AQree 6 25.0 
Strongly agree 3 12.5 
Total 24 100.0 
Source: Primary data 
The result in Table 4.1 1 indicates that 33.3% and 16.7% of employees have contrary 
views to the statements of lack of enough resources to address non-compliance by 
indicating disagree and strongly disagree respectively. The data show that 25% and 
12.5% agree with the statement. The majority of employees do not agree with the 
statement. This could mean that Equipment, Budgeting , and Human Capital are not a 
concern to the department in experiencing noncompliance. The problem could be poor 
planning and lack of commitment affecting non-compliance. 
Table 4.12: The department experience conflict of interest within SCM. 
Frequency Percentage 
Valid StronQIY DisaQree 4 16.7 
Disagree 6 25.0 
Not applicable 4 16.7 
Agree 9 37 .5 
Strongly agree 1 4.2 
Total 24 100.0 
Source: Primary data 
The result in Table 4.12 shows that 37.5% of employees believe that there is conflict 
of interest existing in doing their functions , 16.7% strongly disagree with the statement, 
25. %, disagree, and only few officials stated not applicable. This could mean that 
officials are conniving with the suppliers to influence the decisions, while there are 
other employees who are committed to ensure compliance. There is a need for 
continuous vetting of officials and suppliers on a continuous basis. 
54 
Table 4.13: Lack of adequate capacity. 
Frequency Percentage 
Valid Strongly disagree 2 8.3 
Disagree 3 12.5 
Not aoolicable 6 25.0 
Agree 10 41 .7 
Strongly agree 3 12.5 
Total 24 100.0 
Source: Primary data 
Table 4.13 ind icates that majority of employees agree and strongly agree that 
capacity is challenged to address non-compliance with 41.7 % and 12.5% 
respectively , while 25% believe is not applicable to them, 12.5% and 8.3 % disagree 
and strongly disagree respectively. This implies that personnel might be promoted , 
retire and resign without any replacement due to the austerity measures from high 
levels of authority. Th is can lead to or affect the unit negatively in terms of 
performance. 
Table 4.14: Lack of training in the SCM. 
Frequency Percentage 
Valid Stronolv disagree 1 4.2 
Disaoree 6 25.0 
Not aoolicable 3 12.5 
Agree 12 50.0 
Strongly agree 2 8.3 
Total 24 100.0 
Source: Primary data 
The researcher found in Table 4.14 that majority of employees believe that lack of 
training is contributing to non-compliance with 50% agree ,8.3% strongly agree , while 
25% , 4.2% disagree and strongly disagree respectively , followed by 12.5% not 
applicable . Th is might lead to changes in operations, pol icies and new central 
database system is being in place. Most of the respondents indicate that they needed 
to be trained on Logis procurement system , supporting the literature review and 
problem statement where management intend to train the officials but show no sign of 
improvement. 
55 
Table 4.15: Employees were asked if there was lack of supervision. 
Frequency Percentage 
Valid Strongly disagree 3 12.5 
DisaQree 5 20.8 
Not applicable 5 20.8 
Agree 9 37.5 
Strongly agree 2 8.3 
Total 24 100.0 
Source: Primary data 
Table 4.15 result indicates that majority of employees with the rate of ( 37.5%) agree 
that there is no supervision in Supply Chain Management, while 8.3% strongly agree; 
followed by 20.8% who disagree and not applicable and 12.5 % who also disagree 
with the statement. This might be that management styles used by management are 
not effective in micro managing their staff. Another factor might be management is 
always not at work attending executive meetings. 
Table 4.16: The department experience poor planning. 
Frequency PercentaQe 
Valid Strongly disagree 2 8.3 
DisaQree 5 20.8 
Not applicable 5 20.8 
Agree 9 37.5 
Strongly disagree 3 12.5 
Total 24 100.0 
Source: Primary data 
The majority of employees agree and strongly agree respectively (37.5% and 
12.5%) in Table 4.16, that poor planning might cause non-compliance in the supply 
chain management. However, few employees think contrary to the statements where 
8.3% and 20.8% strongly disagree and disagree respectively. Poor planning might 
arise due to incompetence of the line function management, or lack of further training 
in project management. 
Table 4.17 below, indicates that most of the employees agree and strongly agree 
(41 .7% and 4.2%) respectively that there is no accountability. Yet 12.5% and 20.8% 
do not agree with the statement. This might mean that there is no accountability as 
outlined by Public Finance Management Act amongst employees. There is no clear 
reporting line and accountability when contravening the policies. 
56 
Table 4.17: The department experience lack of accountability. 
Frequency Percentage 
Valid Strongly disagree 3 12.5 
Disagree 5 20.8 
Not applicable 5 20.8 
Agree 10 41 .7 
Strongly agree 1 4.2 
Total 24 100.0 
Source: Primary data 
Table 4.18 Three Bid Committee System exists in the Province. 
Frequency Percentage 
Valid Strongly disagree 1 4.2 
Disagree 4 16.7 
Not applicable 3 12.5 
Agree 14 58.3 
Strongly agree 2 8.3 
Total 24 100.0 
Source: Primary data 
Table 4.18 indicates that majority of employees agree and strongly agree (58.3% and 
8.3%) that three Bid Committee System (BSC) exists within the organization . Whereas 
is viewed by few employees who still believe that there is no Complete structure of 
BCS (4.2%) and (16.7%). This contradicts the information provided in the literature 
review and problem statement that lack of segregation of duties is due to non-
availability of three BCS, which is Specification Committee, Bid Evaluations and Bid 
Adjudication Committee as per procurement policy. 
The researcher found that in Table 4.19 below majority of employees agree and 
strongly agree (37.5% and 8.3%) that database is updated annually. A few employees 
believe that database is not updated (25%). This implies that database system is 
rotational in terms of the commodity and suppliers who are rendering services to the 
organization. This gives the organization advantage of managing its supplier 
database. 
57 
Table 4.19: Supplier database updated annually. 
Frequency Percentaqe 
Valid Disaqree 6 25.0 
Not applicable 7 29.2 
Agree 9 37.5 
Stronqly agree 2 8.3 
Total 24 100.0 
Source: Primary data 
Table 4.20 : Bid Committee members do not understand their functions. 
Frequency Percentage 
Valid Strongly disagree 2 8.3 
Disagree 6 25.0 
Not applicable 7 29.2 
Aqree 8 33.3 
Stronqly agree 1 4.2 
Total 24 100.0 
Source: Primary data 
Table 4.20 indicates that majority of employees trust that 33.3% and 4.2% of members 
of the Bid Committee do not understand their functions ; While 8.3% and 25% disagree 
and strongly disagree. This might mean that members of the Bid Committee are still 
new and need trainings. 
Table 4.21: Our suppliers always adhere to delivery dates. 
Frequency Percentage 
Valid Strongly disagree 2 8.3 
Disagree 5 20.8 
Not applicable 4 16.7 
Agree 12 50.0 
Strongly agree 1 4.2 
Total 24 100.0 
Source: Primary data 
Researcher found that majority of employees ( 50% and 4.2%) agree and strongly 
agree as displayed in Table 4.21 that our suppliers deliver within the delivery dates 
while 8.3% and 20.8% strongly disagree and disagree. This implies that goods and 
58 
service are delivered at the right time and at right place and the right cost as per 
procurement policies and the Constitution s (217) . 
Table 4.22: Suppliers always deliver according to our specification. 
Frequency Percentage 
Valid Disagree 5 20.8 
Not applicable 4 16.7 
Agree 14 58.3 
Strongly agree 1 4.2 
Total 24 100.0 
Source: Primary data 
Table 4.22 indicates that the majority of employees (58.3% and 4.2%) agree and 
strongly agree that service providers comply with the specification . About 20.8% 
disagree. This means that goods and services are delivered at the right place, right 
cost and right time according to the preferential procurement policy act of 2001 as 
amended in 2011 and 2017 and Constitution s (217) respectively. 
Table 4.23 Officials understand the role of supply chain management. 
Frequency Percentage 
Valid Disagree 7 29.2 
Not applicable 4 16.7 
Agree 10 41 .7 
Strongly agree 3 12.5 
Total 24 100.0 
Source: Primary data 
Table 4.23 indicates that majority of employees (41 .7% and 12.5%) agree and strongly 
agree that officials understand the role of supply chain management. However, few 
employees (29.2%) disagree with the statement. This could be concluded that 
employees in Supply Chain Management could interpret and understand the available 
policy governing the division such as Public Finance Management Act No 1 of 1999. 
Table 4.24 below, indicates that majority of employees (4.2% and 41 .7%) strongly 
disagree and disagree respectively that there is segregation of duties in the supply 
chain management while 25% and 16.7 % agree and strongly agree. This cannot over 
emphasize that segregation of duties might be due to poor planning , or lack of 
supervision which may result in non-compliance with the PFMA No 1 of 1999 and 
PPPFA NO 2000. 
59 
Table 4.24: There is a segregation of duties in the supply chain management. 
Frequency PercentaQe 
Valid Strongly disagree 1 4.2 
Disagree 10 41.7 
Not applicable 3 12.5 
Agree 6 25.0 
StronQIY aQree 4 16.7 
Total 24 100.0 
Source: Primary data 
Table 4.25 Officials in the SCM unit understand what must be done to prevent 
noncompliance in the section. 
Frequency PercentaQe 
Valid DisaQree 9 37.5 
Not applicable 3 12.5 
Agree 9 37.5 
Strongly agree 3 12.5 
Total 24 100.0 
Source: Primary data 
Table 4 .. 25 indicates that majority of employees (37.5% and 12.5%) agree and 
strongly agree that officials know what is expected of them to prevent non-compliance 
in the supply chain , While 37.5% of employees disagree with the statement. This 
impl ies that officials may still improve and ensure that non-compliance is prevented 
within the unit of supply chain management. 
Table 4.26 below indicates 41 .7% and 8.3% of employees agree and strongly agree 
that the department is reporting "fruitless and wasteful expenditure monthly", while 
29.2% and 20.8% of employees do not agree with the statement and 20.8% of 
employees indicate not applicable. This could mean the department is in compliant 
with the Treasury regulation 12 in conjunction with the PFMA 1 of 1999, stating that 
all fruitless and wasteful expenditure must be reported to the Accounting authority and 
recovered from responsible officials. 
60 
Table 4.26: All irregular, fruitless and wasteful expenditure are reported monthly 
in the SCM and Finance. 
Frequency Percentage 
Valid Disagree 7 29.2 
Not applicable 5 20.8 
AQree 10 41 .7 
Strongly agree 2 8.3 
Total 24 100.0 
Source: Primary data 
Table 4.27: All creditors who supply goods and services are paid within 30 days. 
Frequency Percentage 
Valid Disagree 2 8.3 
Not applicable 4 16.7 
Aqree 12 50.0 
Stronqly aqree 6 25.0 
Total 24 100.0 
Source: Primary data 
In Table 4.27 the results shows that majority of employees (50% and 25%) agree and 
strongly agree respectively. While 8.3% of the employee, disagree and 16.7% non-
applicable. This implies that the department is able to make payment within 30 days 
as per PFMA section 38. This will promote Small Medium Enterprises (SME) to be 
sustainable in rendering services. 
4.3 INFERENTIAL STATISTICAL ANALYSIS AND SYMMETRIC MEASURES 
This study discusses the results that apply significant association with biographic 
information using the Cramer's Method. Statistical significance basically means we 
complete that the relationship is really there, it is not a coincidental incidence. 
"Cramer's rule is a mathematical method of involving the elements of the coefficient, 
for calculating a unique solution for a given system of linear equations". (Bryman, 
2014).This study therefore uses Cramer's V for applied significance to determine 
61 
whether a relationship between the two variables does exist or is significant. The 
statistical significance is determined with Chi-square test. 
The statistical significance will be equate to 95% confident and less confident by 
5 %, therefore, p<.05 that an association was not due to chance. 
For the purpose of this study these guidelines are applied in each case 
a) Small effect : p=0.1 
a) Medium effect p=0.3 
b) Large effect p=0.5 
Frequently, an association with p.::0.5 is considered as nearly significant (Bryman, 
2014) . 
Table 4.28: Education and officials do not comply with SCM policies and 
Regulations. 
Crosstab 
Count 
Official do not always comply with SCM Policies and 
Requlations 
Total 
Strongly Not Strongly 
Disagree Agree 
Disagree Appl icable agree 
Grade 12 1(20%) 1(20%) 3(60%) 0 0 5 
What is Diploma 0 7(47%) 2(13%) 2(13%) 4(27%) 15 
your Degree 3(100%) 0 0 0 0 3 
highest 
Education 
Postgraduate 
0 0 0 1(100%) 0 1 
diploma 
Total 4(17%) 8(33%) 5(20%) 3(13%) 4(17%) 24 
Source: Primary data 
Si ymmet r.ic  M easures 
Approximate 
Value Significance 
Nominal bv Nominal Phi 1.156 .001 
Cramer's V .667 .001 
N of V alid Cases 24 
Source: Primary data 
For this inquiry a Cramer's V coefficient of .667 was used, since the table consisted of 
uneven numbers of rows and columns. This coefficient designated a large effect and 
even though not statistically significant, it was most probably due to the minor 
62 
populations' size. When inspecting the cross tabulation in Table 4.28 it is detected that 
47% of officials with diploma did not agree with the statement of employee do not 
comply with policies and regulations within the unit, while 13% of officials with diploma 
agree with the statement. The overall rating is that 33% of officials disagree with the 
statement and 13% agree with the statement. This implies that there is a compliance 
with the policies according to the majority of employees in the department. 
Table 4.29: Gender and Official does not always comply with SCM Policies 
and Regulations. 
Crosstab 
Count 
Official do not always comply with SCM Policies and Regulations 
Strongly Not Strongly 
Disaoree Disaoree Applicable Aoree aoree Tota l 
Please Male 1(11 %) 2(22%) 4(44%) 1(11%) 1(1 1 %) 9 
indicate your 
gender Female 3(20%) 6(30%) 1(6%) 2(13%) 3(20%) 15 
Total 4(17%) 8(33%) 5(20%) 3(13%) 4(17%) 24 
Source: Primary data 
5; ymmet n. c M easures 
Approximate 
Value Sionificance 
Nominal by Nominal Phi .454 .293 
Cramer's V .454 .293 
N of Valid Cases 24 
Source: Primary data 
In this inquiry, the phi coefficient was 0.454, denoting a large effect. While not 
statistically significant, it was most probably due to the minor sample size. When 
viewing Table 4.29, a cross tabulation maximum of 44% of the male participants 
state not applicable and Maximum of 30% of Female disagrees, state that it is not 
applicable when asked if the officials ask that they do not always comply with SCM 
policies and regulations and the Minimum of 11 % of Male and 13% agree with the 
statement. The overall 33% maximum disagrees with the statement and 13% 
minimum agrees with the statement. The majority of people seem not to understand 
this question hence they stated that this is not applicable. It also shows that they do 
not have information on what is transparent on the day to day activities of their work. 
63 
Table 4.30 Education and Official do not always comply with the Public Finance 
Management Act. 
Crosstab 
Count 
Official do not always comply with the Public Finance Management 
Act 
Strongly Strong 
disaoree Disaoree Not appl icable Aoree Aoree Total 
What is Grade 12 1(20%) 1(20%) 3(60%) 0 0 5 
your 
highest Diploma 1(6%) 5(33% 1(6%) 4(26%) 4(26%) 15 
Education Degree 2(67%) 1(33%) 0 0 0 3 
Postgraduate 0 0 0 1(100%) 0 1 
diploma 
Total 4(17% 7 (29%) 4(17%) 5(20%) 4(17%) 24 
Source: Primary data 
Si ymmet n.c  M easures 
Approximate 
Value Sionificance 
Nominal by Nominal Phi .928 .056 
Cramer's V .536 .056 
N of Val id Cases 24 
Source: Primary data 
In this inquiry, the researcher used Cramer's V coefficient of .536, in which the result 
indicates the coefficient of large effect, even though not statistically significant, was 
probably due to the small population sample. 
In looking at the cross tabulation of Table 4.30, it is observed that 8 officials 
possessing diploma agree and strongly agree with the statement that officials "are 
not complying with Public Finance Management Act , While 6 officials with diploma 
disagree and strongly disagree with the statement and 1 with diploma mentioning not 
applicable . The overall rating was that 9 (37%) officials agree with the statement while 
11 (46%) in aggregate disagree and strongly disagree with the statement. 
64 
Table 4.31 Education and the department do not have an effective SCM 
monitoring system 
Crosstab 
Count 
The department does not have an effective SCM monitoring system 
Strongly Strong ly 
disagree Disagree Not Applicable Agree agree Total 
What is your Grade 12 1(20%) 1(20%) 3(60%) 0 0 5 
highest 
5(33%) 1(7%) 7(47%) 2(13%) 15 
Education Diploma 0 
Degree 2(67%) 1(33%) 0 0 0 3 
Postgraduate 0 0 0 1(1 00%) 0 1 
diploma 
Total I 3(13%) 7(29%) 4(1 7%) 8(33%) 2(8%) 24 
Source: Primary data 
S, ymme tn.c  M easures 
Approximate 
Value Sign ificance 
Nominal by Nominal Phi .979 .028 
Cramer's V .565 .028 
N of Valid Cases 24 
Source: Primary data 
For this inquiry, a Cramer's V constant of .565 was used. This coefficient denotes a 
large effect and not statistically significant; it was most probable due to the small 
population size. When observing the cross tabulation in Table 4.31 , it is noted that 7 
officials who are in a possession of diploma agree that the department does not have 
effective SCM monitoring system whereas 5 who possess diploma do not agree. The 
overall rating is that 10 officials agree and strongly agree on aggregate with the 
statement and 10 officials on aggregate disagree and strongly disagree, whereas 4 
stated not applicable. This means that there are 50:50 equal chances of the statement. 
65 
Table 4.32 What is the length of your experience at the department and there is 
a segregation of duties in the supply chain management 
Crosstab 
Count 
There is a seareaation of duties in the suppl\ chain manaaement 
Strongly Strongly 
disaqree Disaqree Not applicable Aqree aqree Total 
What is the length of Less 1(17%) 1(17%) 1(17%) 2(32%) 1(17%) 6 
your experience at the than 5 
department years 
5 to 10 0 4(57%) 1(14%) 2(29%) 0 7 
years 
10 to 15 0 0 0 1(100%) 0 1 
years 
Above 0 5(50%) 1(10% 1(10%) 3(30%) 10 
15 years 
Total 1(4%) 10(42%) 3(13%) 6(25%) 4(17%) 24 
Source: Primary data 
Si ymmetri.c  Me asures 
Approximate 
Value Significance 
Nominal by Nominal Phi .674 .536 
Cramer's V .389 .536 
N of Valid Cases 24 
Source: Primary data 
In this inquiry, the researcher used a Cramer V coefficient of 0.389 which indicates 
medium effect as well as not statistically significant due to the small population sample. 
In observing the cross tabulation of Table 4.32, officials with above 15 years of service 
5(50%) disagree that there is a segregation of duties in supply chain management 
office while 3(30%) strongly agree that there is a segregation of duties. Segregation 
of duties might be due to poor planning. 
4.4 ANALYSIS OF RESULT USING QUALITATIVE PROCEDURE 
The respondents did respond on the qualitative issues and out of 24 respondents, only 
11 officials did manage to justify their responses, while 13 officials left the justification 
of their responses blank or not applicable. Out of the few responses, the researchers 
managed to code the information and select the themes and formulate report using 
66 
the content analysis, the summary of the views of the officials is provided below as 
part of the analysis 
Table 4.33 Content Analysis 
CODE CATEGORY THEMES 
1 Policies and • Lack of uniformity of the pol icies 
Regulations and • Policies govern supply chain , PFMA, 
process 
PPPFA,TR and other directories 
• Segregation of duties limits complete 
understanding of the SCM process 
• Not following the policies of SCM by 
officials 
2 Education • Most of the officials do not have post matric 
qualification resulting competency 
3 Change • Resistant to change especially the old 
Management employees. 
4 Role of SCM and • Officials cannot differentiate SCM and 
Finance Finance, when they need assistance they 
just ask anyone within the two components 
5 Irregular • Lack of accountability 
Expenditure 
6 Training Attain • Logis literacy 
• Supply chain management attended but no 
certification provided 
• Bas training 
• Emerging management development 
course 
• Advanced management development 
course 
7 Training needed • Supply chain management 
• Logis reporting 
• Logis order 
• Logis payment processing 
• Bas and Logis 
• Lack of training of interns is still a challenge 
• Logis literature 
• Scoa (Standard Chart Of Accounts) 
67 
■ Persal ( Personnel and Salary 
Administration 
■ Sundry payment 
8 Bid committee ■ Lack of segregation of duties 
■ Tender process create and increases 
problem and corruption 
9 capacity ■ Shortage of staff in supply chain 
■ Poor planning 
■ Lack of accountability, Managers do not 
take ownership and responsibility, hence 
fingers are always pointed to the next 
person , senior managers also do not 
render sufficient support 
■ Lack of supervision 
10 strategies to ■ Officials in the organization must not do 
address non business with the state as this wi ll bring 
compliance conflict of interest 
■ Receiving a list of suppliers from Central 
suppliers database(CSD) 
■ Deciding on product specification 
■ Requesting quotations from suppliers 
■ Generating an order for the best quotations 
■ Receiving delivery of goods or services 
■ Receiving valid invoices 
■ Monitoring financial transgressions and 
follow policies and procedure in SCM 
■ Implement openness and transparency in 
the SCM process 
■ Regular communication and feedback is 
important 
■ No hesitation to discipline those who are 
implicated in corruption 
■ Policies must be clear and precise 
■ Controls are there to ensure that 30 days 
payment is made. 
11 Database ■ Database is not updated annually 
12 Challenges/causes ■ Emergencies request are the ones that 
of non-compliance increase non-compliance, sourcing one 
quotations instead of a minimum of 3 
quotes 
■ Lack of planning or poor 
■ Lack of knowledge of applicable policies 
■ Bad attitude of officials towards their work , 
thus deliverinq bad quality of work 
68 
• Comfort zone, not prepared to learn new 
things 
• Limited resources 
Source: Primary data 
4.5 SUMMARY OF THE CHAPTER 
This chapter presented a detailed discussion of the analysis of research data 
composed from the forms. The replies from Department Of Home Affairs officials were 
received relating to demographic information and questions relating to objectives. The 
analysis applied in this chapter is descriptive statistics and inferential statistics and 
content analysis for qualitative research as outl ined in the research methodology. The 
recommendations and limitations are discussed in Chapter 5. 
69 
CHAPTER 5 
CONCLUSIONS AND RECOMMENDATIONS 
5.1 INTRODUCTION 
This chapter comprises the evaluation of research points, conclusions, 
recommendation to address non-compliance in the Supply Chain Management and 
Public Finance Management Act. 
5.2 CONCLUSION 
The researcher concludes the chapter by attesting to the department not complying in 
certain areas required by Public Finance Management Act of 1 of 1999, (PFMA) where 
the department is lack accountability, supervision , proper planning; delegation leading 
to non-compliance with legislative framework within Supply Chain Management. This 
will continue to attract audit queries if not addressed as a whole. Managers need to 
use PFMA as a working tool to help them to manage. 
The Supply Chain Management practices play a vital role in adding value to each 
stage of the process from Demand management, Acquisition management, Logistics 
process and Disposal process per Procurement Policy, these stage need compliance. 
The conclusion drawn from the study is presented under the various objectives 
following . 
5.2.1 Objective One (1): To clarify the role of Supply Chain Manager in 
terms of preventing non-compliance in the SCM. 
It has been found from the quantitative study that several officials understand 
the role of Supply Chain Management. In the qualitative study it has been found 
that the officials are in confusion, to understand the functions of the Supply 
Chain Manager. This is shown when employees bring documents that are 
submitted to Finance Office to Supply Chain Manager Office. The employees 
70 
of the department cannot distinguish between the work of Finance Manager 
and Supply Chain Manager. This result in delaying the services as documents 
end up being troops at the wrong section before it can reach the relevant 
officials in the Supply Chain Management or Finance Management. 
5.2.2 Objective Two (2): To determine the reasons of non-compliance in 
Supply Chain Management and PFMA 
From the study, various questions were posed to the respondents to determine 
if there was compliance in various legislations that govern supply chain 
management. The first policy legislation in the supply chain management was 
the Travel Management Policy document. Majority of the officials in answering 
the questionnaire agreed that officials were in compliance with Travel 
Management Policy of 2016, while there was a comment in the qualitative 
questionnaire that non-compliance of Travel Management Policy occurred 
when there was emergency or urgent request where officials needed to be 
booked. Secondly policy documentation compliance of Public Finance 
Management Act No 1 of 1999 (PFMA) found that the department had been 
complying in terms of PFMA, as the majority of employees did agree that 
fruitless and wasteful expenditure were reported on a monthly basis, service 
providers delivered goods and services within the stipulated delivery period , 
and were complying in terms of specification determined by demand 
management unit. 
However, it has been found that the department is not complying in segregation 
of duties, no capacity of staff in the Supply Chain Management in both the 
quantitative and qualitative questionnaire employees agreed that there was 
poor planning; lack of supervision of management, lack of accountability, and 
the members of the bid committees did not understand their functions. This 
poses a serious risk for the department in complying with the overall functions 
of the Supply Chain Management. 
From the study it is concluded that there is the area of non-compliance in Supply 
Chain Management, as confirmed by the respondents, and supported by the 
Auditor General Report found as indicated in the department Annual report of 
2014 and 2015 financial period. 
71 
5.2.3 Objective Three (3): To determine the Adequacy of Skills, training, 
knowledge, of the stakeholders in Supply Chain and Finance. 
As per this objective, the conclusion is drawn that majority of officials need to 
be trained in the area of Supply Chain Management. The train ings that they 
have undergone, such as Logis literacy, and Supply Chain Management 
courses have no certification provided , as training , Emerging Management 
Development course and Advanced Management Development course. 
The officials also indicated the courses that needed to be attended in the supply 
chain management are, logis reporting , logis order, logis payment processing , 
and training of interns, Logis literature, SCOA, Persal and Sundry payment. It 
is observed that some of the trainings such as BAS and Persal are not specific 
for supply chain but officials have interest in such training as they are related to 
the functions performed in supply chain management. 
5.2.4 Objective Four (4): To determine the resources needed to address 
non-compliance in Supply Chain Management. 
It has been found from the study that the department does have the resources 
to address non-compliance in supply chain management. The department does 
have good policy documentation to implement and address non-compliance; 
the budget is available to train officials in order to be effective to address non-
compliance; there is also budget to purchase work stations such as computers, 
table and chairs . 
5.2.5 Objective Five (5): To determine the actions needed to be taken by 
management to combat non-compliance in the Supply Chain 
Management. 
It has been found that some of the actions suggested by the officials to address 
non-compliance are as follows; in the qualitative questionnaires, Officials in the 
organization must not do business with the state as this could lead to conflict of 
interest; avoid receiving a list of suppliers from Central Suppliers 
Database(CSD) ,deciding on product specification , requesting quotations from 
suppliers, generating an order for the best quotations, receiving delivery of 
72 
goods or services, receiving valid invoices, monitoring financial transgressions 
and follow policies and procedure in supply chain management, in 
implementing openness and transparency in the supply chain process, 
communication and feedback is important. There should be no hesitation to 
discipline those who are implicated in corruptions, policies must be clear and 
precise and controls must be there to ensure that 30 days payments are made. 
5.3 RECOMMENDATIONS 
There is a need for officials in Supply Chain Management and Finance to comply with 
the legislative framework. National Treasury develops policies, procedure manual and 
guidelines for the effectiveness of financial management process. 
The researcher recommends the following : 
a) The Department of Home Affairs (DHA) in North West Province needs to invest 
and allocate adequate resources to address non-compliance within the area of 
Supply Chain Management. 
b) Develop , review, and implement policies within Supply Chain Management. 
c) Ensure that policies and procedure manuals implemented are in line with the 
National Treasury requirements. 
d) Department of Home Affairs , North West Province, needs to establish 
compliance unit to coordinate compliance activities. 
e) The DHA in the province must ensure that there is mounted tender box and 
utilised to secure the quotations process of acquiring goods and services. 
f) National Treasury and Department of Public Service and Administration need 
to promote Supply Chain Profession within government institutions, Officials 
with Diplomas and Degrees need to register with the Professional body such 
as Institute for Supply Management (ISM). ISM is the largest supply chain 
management association internationally and well integrated organizations. This 
body must regulate all irregularities occurring in the name of supply chain, 
conduct their own investigation , and revoke the membership and qualification 
of the individuals who are corrupting and mal-practising within the government 
73 
departments in order to minimise non-compliance in Supply Chain 
Management. 
g) DHA need to encourage officials to comply with Travel Management Policies. 
h) The organization needs to develop and formulate Loss Control Committee 
(LCC). 
i) Poor planning should not be promoted within public sector but corrected by 
sending the key personnel in Supply Chain Management to attend Project 
Management course work. 
j) Lack of supervision was one of the key findings, management should be in a 
position to capacitate their officials to do their work when they are away with 
the meetings and outreach programmes. 
5.4 SCOPE FOR FURTHER RESEARCH 
Since this study was limited only to the Department of Home Affairs in Mafikeng, North 
West Province. It is therefore suggested that the National Department of Home Affairs 
ought to be considered whenever the research of this nature is conducted, where the 
study will focus on all the Provinces in the country. This will assist the department to 
comply completely as a whole in line with the Public Finance Management Act No 1 
of 1999 (PFMA) and other prescripts relate to Supply Chain Management such as 
Preferential Procurement Policy Framework Act of 2000. 
74 
5.5 REFERENCES 
Ambe, 1.M. 2009. An exploration of supply chain management practices in the central 
district municipality. Educational Research and Reviews, 4(9) :427-435. 
Ambe, I.M . & Badenhorst-Weiss, J.A. 2012. Supply chain management challenges 
in the South African public sector. African Journal of Business Management, 
6(44):1 1003. 
Ameyaw, C. , Mensah, S. & Osei-Tutu , E. 2012. Public procurement in Ghana: The 
implementation challenges to the public procurement law 2003 (Act 663) . lntemational 
Journal of Construction supply chain management, 2(2):55-65. 
Anon. Act 108 of 1996. Constitution of the Republic of South Africa. Pretoria. 
Auditor-General. Affairs, D.O.H. 2014-2015. Annual Report. www.dha.gov.za. 
Boer, L. & Telgen , J. 1998. Purchasing practice in Dutch municipalities. Journal of 
supply chain management, 34(1):31-36. 
Bolton, P. 2006. Government procurement as a policy tool in South Africa . Journal 
of Public Procurement, 6(3) : 193. 
Bolton, P. 2007. The law of government procurement in South Africa: LexisNexis 
Butterworths. 
Bolton, P. 2009. The committee system for competitive BIDS in local government. 
PER: Potchefstroomse Elektroniese Regsblad, 12(2):0-0. 
Booth , C. 2014. Strategic Procurement: Organizing suppliers and supply chains for 
competitive advantage: Kogan Page Publishers. 
Bryman, B., Hirschsohn, Dos Santos, Du Tait, Masenge, Van Aardt , Wagner. 2014. 
Brynard , P. & Hanekom, S.X. 2006. Introduction to research in management-related 
fields 2nd Edition: Van Schaik Publisher's. 
Research Methodology Business and Management Contexts. United Kingdom: 
Oxford University Press Southern Africa(pty) Ltd . 
Brynard , P.A. & Hanekom , S. 2006. Introduction to research in related field . 2 
Pretoria Van Schaik: Van Schaik. 
Burney, S. 2008. Inductive and deductive research approach. Retrieved, 9(21) :2010. 
Creswell , J.W. & Clark, V.L.P. 2007. Designing and conducting mixed methods 
research. 
75 
Dlamini , W. & Ambe, I.M . 2012. The influence of public procurement policies on the 
implementation of procurement best practices in South African universities. Journal 
of Transport and Supply Chain Management, 6(1). 
Fiorino, D.J. & Bhan, M. 2016. Supply Chain Management as Private Sector 
Regulation: What does it Mean for Business Strategy and Public Policy? Business 
Strategy and the Environment, 25(5) :310-322. 
Fourie, D. 2007. Financial control measures enhancing good governance. Journal 
of Public Administration, 42(7):733-743. 
Gesuka, D. & Namusonge, G. 2013. Factors affecting compliance of public 
procurement regulations in Kenya: A case study of Butere district. International 
Journal of Social Sciences and Entrepreneurship , 1 (5) :882-896. 
Hlakudi , N.J. 2013. Preferential procurement and emerging enterprises. 
Hugo, W.M.J., Badenhorst, J.A. & Van Rooyen, D.C. 2002. Purchasing and supply 
management: Van Schaik. 
Ireland , R.D. & Webb, J.W. 2007. Strategic entrepreneurship: Creating competitive 
advantage through streams of innovation . Business horizons, 50(1):49-59. 
Jones, D.S. 2007. Public procurement in Southeast Asia: Challenge and reform . 
Journal of Public Procurement, 7(1):3. 
Kachelmeier, S.J ., Schmidt, J.J. & Valentine, K. 2016. The disclaimer effect of 
disclosing critical audit matters in the auditor's report. 
Karjalainen, K. , Kemppainen , K. & Van Raaij , E.M. 2009. Non-compliant work 
behaviour in purchasing: An exploration of reasons behind maverick buying. Journal 
of Business Ethics, 85(2) :245-261 . 
Kokor, D.S.A. 2015. Challenges and Strategies to the Implementation of Standard 
Procurement Procedures: A Study within Ga-Central Municipal Assembly ( Doctoral 
dissertation). 
Lai , K. , Liu, S. & Wang , S. 2004. A method used for evaluating bids in the Chinese 
construction industry. International Journal of Project Management, 22(3) : 193-201. 
Lopez-Acevedo, G., Rivera, K., Lima, L. & Hwang, H. 2010. Challenges in monitoring 
and evaluation: an opportunity to institutionalize M&E systems. Washington DC: 
World Bank. 
Maccarthy, N. 2006. Report of the Auditor-General. Free State, Bloemfontein , 30:1-
7. 
76 
Matthee, C.A. 2005. The potential of internal audit to enhance public supply chain 
management outcomes. Stellenbosch: University of Stellenbosch . 
Migiro, S . & Ambe, I. 2008. Evaluation of the implementation of public sector supply 
chain management and challenges: A case study of the central district municipality, 
North west province, South Africa . African Journal of Business Management, 
2(12):230. 
Mouton, J . & Marais, H.C. 1988. Basic concepts in the methodology of the social 
sciences: HSRC Press. 
Naidoo, R. 2002. Corporate governance: An essential guide for South African 
companies: Juta and Company Ltd. 
National Treasury. Public Finance Management Act of 1 (1999) . 
National treasury, (2004) . Supply Chain Management a guide for accounting 
officers/A uthorities 
Pauw, J., Woods, G., Van der Linde, G.J.A. , Fourie, D. & Visser, C.B. 2002. Managing 
Public Money: A System from the South . First Edition . Park Lane: Heinemann. 
SAMDI (2005) . Supply Chain Management: A guide for accounting Officers and 
municipal entities. Course Manual 
Saunders, M., Lewis, P. & Thornhill , A. 2009. Research Methods for Business 
Students. 5th Edition. England : Pearson Education limited . 
Stemele, B.M. 2009. Assessing good governance in procurement at the 
Lejweleputswa District Municipality. Stellenbosch : University of Stellenbosch . 
Thai , K.V. 2009. International public procurement: Concepts and practices. 
International handbook of public procurement:2-24. 
Trochim , W.M. & Donnelly, J.P. 2001. Research methods knowledge base.Cornell 
university. 
Tshamaano, V.L. 2012. Impact of the supply chain management on service delivery: 
The case study of Provincial Department of Economic, Development, Environment 
and Tourism in the Limpopo Province. 
Tukamuhabwa, B.R. 2012. Antecedents and consequences of public procurement 
non-compliance behavior. Journal of Economics and Behavioral Studies, 4(1) :34-46. 
Wilbraham , L. 1995. Thematic content analysis : Panacea for the ills of " intentioned 
opacity"of discourse analysis. (In . First Annual Qualitative Methods Conference. 
University of the Witwatersrand, Johannesburg . Unpublished paper retrieved from 
http://www. criticalmethods. org/wil. htm organised by. 
77 
Xhati , N.P. 2015. The impact of public finance management ACT in advancing the 
organisational objectives of the North-West Department of Education. 
78 
APPENDIX A: 
- Data collection instrument(-s) -
79 
APPENDIX A: QUESTIONNAIRE 
Dear respondents 
This questionnaire seeks to beseech data on experience, knowledge and attitude 
about supply chain management in compliance of Public finance management act 
within your department. The study is merely for academic purposes and nothing 
else. You have been prudently selected to participate in th is study with hope that 
your contribution will yield good results on this work. You did not have to disclose 
your names. 
Instructions: Please respond by ticking in the relevant box (X) 
SECTION (A) PERSONAL INFORMATION 
SECTION (B) SUPPLY CHAIN MANAGEMENT COMPLIANCE ACTIVITIES 
Note 
(i) Open ended questionnaires are included to provide further clarity on 
the questions ask 
(ii) I will gratefully provide clarifications and explanations to any 
questions that needed clarity 
SECTION A: PERSONAL INFORMATION 
1. Please indicate your Gender? 
I MALE I I FEMALE I 
2. What is your job title? 
Chief Director Deputy Assistant Snr state State Admin 
Director Director Director Accountant Accountant Clerk 
Others 
Please Specify:-
3. What is your race 
I Black I I Coloured I Indian I white 
80 
4. Please indicate your age category? 
Between Between 40 to Above 55 
25 to 40 55 
5. What is your level of Education 
Grade 12 Diploma Degree Postgraduate 
di lama 
6. What is the length of your experience at the department? 
Less than 5 to 10 10 to 15 years Above 15 
5 ears ears ears 
SECTION (B) SUPPLY CHAIN MANAGEMENT COMPLIANCE ACTIVITIES (Rate 
as follows) 
B1 Please indicate the extent to which your department comply with the 
following statements as the reasons for non-compliance in the supply chain 
management (SCM) 
(Strongly d isagree=1 Disagree =2 Not applicable =3, Agree =4, strongly agree 
=5) 
1 Officials do not always comply w ith SCM policies and 1 2 3 4 5 
reQulations 
2 Officials do not always comply with the travel 1 2 3 4 5 
manaQement policies 
3 Officials do not always comply w ith the Public Finance 1 2 3 4 5 
Management Act(PFMA) in the context of SCM 
framework 
4 The department does not have an effective SCM 1 2 3 4 5 
monitoring system 
5 The department does not always have enough resources 1 2 3 4 5 
to address non-compliance in the SCM 
6 The department experience conflict of interest within 1 2 3 4 5 
SCM 
7 Lack of adequate capacity 1 2 3 4 5 
8 Lack of tra ininQ in the SCM 1 2 3 4 5 
9 Lack of supervision in the SCM 1 2 3 4 5 
10 The department experience poor planning 1 2 3 4 5 
11 The department experience lack of accountability 1 2 3 4 5 
81 
12 3 Bid committee system exist in the province 1 2 3 4 5 
13 Supplier database updated annually 1 2 3 4 5 
14 Bid committee members do not understand their 1 2 3 4 5 
functions 
15 Our suppliers always adhere to delivery dates 1 2 3 4 5 
16 Suppliers always delivery according to our specification 
Please provide justification for the responses relating the reasons for non-
compliance 
B2 Role of supply chain management to prevent non-compliance 
(Strongly disagree=1 Disagree =2 Not applicable =3, Agree =4, strongly agree 
=5) 
1 Officials understand the role of supply chain 1 2 3 4 5 
management 
2 There is a segregation of duties in the supply chain 1 2 3 4 5 
management 
3 Officials in the SCM unit understand what must be done 1 2 3 4 5 
to prevent noncompliance in the section 
4 All irregular ,fruitless and wasteful expenditure are 1 2 3 4 5 
reported monthly in the SCM and Finance 
5 All creditors who supply goods and services are paid 1 2 3 4 5 
within 30 days 
82 
Please provide justification for the responses relating to the role and 
strategies to prevent non compliance 
Thank you for your time. Have a nice day 
83 
APPENDIX B 
- Informed consent form -
84 
APPENDIX B: LETTER OF INFORMED CONSENT FORM 
Letter of Introduction and Informed Consent 
NWU School of Business and Governance 
PUBLIC FINANCE MANAGEMENT ACT IN COMPLIANCE WITH SUPPLY CHAIN 
MANAGEMENT OF THE SELECTED DEPARTMENT OF HOME AFFAIRS IN 
NORTH WEST PROVINCE. 
Research conducted by: 
Mr. M.W Matlou (26871424) 
Cell : 071 612 7236 
Date: 14 August 2017 
Dear Participant 
You are invited to participate in an academic research study conducted by William 
Maesela Matlou and here at the Department of Home Affairs North West Province, 
Masters Student from the School/Department (Graduate School of Business and 
government at the North- West University- (Mafikeng Campus). 
The purpose of the study is to improve compliance in supply chain management in line 
with the Public Finance Management Act) . 
Please note the following : 
■ This is an anonymous study survey as your name will not appear on the 
questionnaire. The answers you give will be treated as strictly confidential as you 
cannot be identified in person based on the answers you give. 
■ Your participation in this study is very important to us. You may, however, choose 
not to participate and you may also stop participating at any time without any 
negative consequences. 
■ Please answer the questionnaires that will be brought to you. This should not take 
more than 20 minutes of your time. 
■ The results of the study will be used for academic purposes only and may be 
published in an academic journal. We will provide you with a summary of our 
findings on request. 
■ Please contact my study leader, Prof Ravinder Rena, Ravinder.rena@nwu .ac.za 
(018) 3892496 if you have any questions or comments regarding the study. 
85 
Please indicate that: 
■ You have read and understand the information provided above. C::J 
YES 
■ You give your consent to participate in the study on a voluntary basis. ( 
tick) 
Date of consent: 14 August 2017 
Signature of the participants 
86 
APPENDIX C 
- Application for ethical clearance -
87 
APPENDIXC: ETHICAL CLEARANCE LETTER 
NORTH-WEST UNIVERSITY 
YUNIBESITI YA BOKONE-BOPHIRIMA. 
NOORDWES·UNIVERSITEIT 
Private Bag X26502001 , Potchefstroom, South Africa, 
Tel: (018) 2994900 
Faks: (018) 2994910 
Web: httpJlwww.nwu.ac.za 
Institutional Research Ethics Regulatory Committee 
Tel: +2718 299 4849 
Eman : Ethics@nwu.ac.za 
ETHICS APPROVAL CERTIFICATE OF PROJECT 
Based on approval by the Human Resource Research Ethics Committee (HRREC) on 16105/2017, the North-West University 
institutional Research Ellies Regulatory Committee (NWU-IRERC) hereby approves your project as indicated below. This implies that 
the NWU-IRERC grants its permission that, provided the special conditions specified below ere met end pending any other 
authorisation that may be necessary, the project may be initiated, using the ethics number below. 
Prolect title· Publ ic Finance Management Act Compliance In the supply chain management 
unit of a selected department of North West Province. 
Project Leader/Supervisor: Prof R Rena 
~ : MWMaUou 
Ethics !N!w!u l- !0!0!4!s!sl- !1l11-IAl9! 
number: PrqmNurri>ft" (es Sl;aus 
~ S Su&lma.on. R•R~P•Pn:MiaOnal~ A•A&Mlon9aUon 
Application Type: Master'• 
Commencement date: 10/0512017 Expiry date: 10/05/2020 Risk: NIA 
Special conditions of the approval (If applicable): 
Translation of the informed consent document to the languages applicable to the study participants should be submitted to the HRREC (ff 
app~cable). 
Any research at governmental a private institutions, pennissioo must still be obtained from relevant authorities and provided to the 
HRREC. Ethics approval is required BEFORE approval can be obtained Iran these authorities. 
General conditions : 
While this etJ11cs approval is subjed ta all declarations, underlalcings and agreements incorporated and signed in the application form, please 
note the following: 
The project leader (pnncip/e invesligator) must report in the prescribed format to the NWU-IRERC via HRREC: 
- annually (or as o/herwise requested) on the progress of the project, and upon completion o/ the project 
- without any delay in case of any ad.terse event (or any matter that intem,pls sound ethical principles) during the course of the project. 
- Annually a number of projects may be randomly selected for an external audit. 
The approval applies strictly to the protocol as stipulated in the application form. WO<id any changes to the protocol be deemed necessary 
during the course of the projed, the project leader must apply for approval of these changes at the HRREC. Would there be deviated from 
the pmject protocol without the necessary approval of such changes, the ethics approval is immediately and automatically forfeited. 
The date of approval indicates the firs/ dale Iha/ the project may be started. Would the project have to conllnue afler the expiry date, a new 
applicalion must be made to the /Wo/U-IRERC via HRREC and new approval received before or on the expiry date. 
In the illterest of ethical responsibility the NWU-IRERC and HRREC retains the right to: 
- request access to any information or data at any time during the course or after completion of the project; 
- to ask further questions, seek additional infonnalion, require further modification or monitor the conduct of your resean:h or the 111formed 
coosent process. 
- withdraw or pos/pone approval if: 
· any unethical principles or practices of the projed are revealed or suspected, 
· it becomes apparent that any relevant informat,on was withheld from the HRREC or that information has been false or misrepresented, 
the required annual report and reporting of adverse events was not cbne timely and accl.lfale/y, 
· new institutional nies, national /egis/ation or intemational conventions deem it necessary. 
• HRREC can be contacted for further inlonnalion via Estie.Emloch@nwu.ac:za or 018 289 2873. 
The IRERC would like to remain al your service as scientist and researcher, and wishes you well with your project Please do not 
hesitate to contact lhe IRERC or HRREC for any further enquiries or requests for assistance. 
Yours sincerely 
Prof LA Digitally signed by Prof LA Ou Plessis 
Du Plessl·soate: 2017.05.26 10:06:59 +02'00' 
Prof Linda du Plessis 
Chatr NWU Institutional Research Ethics Regulatory Committee (IRERC) 
88 
APPENDIX D: PERMISSION TO CONDUCT RESEARCH 
home affairs 
Department: 
Home Affairs 
REPUBLIC OF SOUTH AFRICA 
CNR CARRINGTON & SHIPPARD STREET, MAFIKENG, 2745 
Dear Director Finance and Support 
I am currenUy a registered student for a Master of Business Administration at the North 
West University 2017. 
As part of the program the student is expected to Conduct Mini-Dissertation which is 
work based challenge with solutions that the researcher will be part of the 
implementation thereof, but the student need to get permission from his superior, and the 
attached will be the letter from the University of North West addressing the issues of 
ethics and code of conduct 
I have already submitted my draft research proposal which entails, the fol lowing. 
TOPIC 
Public Finance Management Act Compliance in the Supply Chain Management In 
the selected Department of Home Affairs in North West Province. 
PROBLEM 
The problem of Non-Compliance with the legislative framework within Supply 
Chain. 
OBJECTIVES 
To determine the causes of noncompliance in the Supply Chain and Finance. 
To determine adherence with the code of ethics and professionalism for Supply 
Chain Practitioner. 
To determine whether the officials in Supply Chain and Finance are adhering with 
the legislative framework applicable to Finance and SCM. 
To determine the skills , knowledge of the role players in the Supply Chain and 
Finance matters. 
89 
REQUEST TO DIRECTOR FINANCE AND SUPPORT 
That Director Finance grants Mr MaUou Permission to conduct the research, which 
already forms part of his studies as is the official in the Finance and Supply Chain at 
North West Provincial Office. He will conduct the research in line with his duties. 
Approved/Not Appfo'ted 
Director Finance & Support 
North West Pro:~ 
Signature_ __~ -',::e==-""'-------
90 
APPENDIX E: DECLARATION OF PROFESSIONAL EDIT 
P.OBOX5826 
Mmabatho 
273S 
13th Nov 2017 
CERTIFICATE OF LANGUAGE EDITING 
TITLE OF DISSERTATION 
Public Finance Management Act Compliance in the Supply Chain 
Management in the selected Department of Home Affairs in North West 
Province. 
SUBMIITED BY 
William Maesela Matlou 
FOR THE DEGREE OF 
MBA 
(Master of Business Administration) 
IN THE 
Faculty of Commerce and Administration 
North-West University 
Mafikeng Campus 
Has been edited for language and other technical details by: 
Prof. S. A. Awudetaey 
Prof S A Awudetsey 
0722371390 
91 
APPENDIX F: TURNITIN REPORT NWU 
William Matlou Turnitin 
Report 
by Dr Francis Lugayizi 
Submiss ion date : 10-Nov-2017 01 :03PM (UTC+0200) 
Submiss ion ID: 877683198 
File name : DESSERT ATION_DRAFT _09_NOV_2017 _MATLOU_MW.doc (1 .09M) 
Word count : 19900 
Character count : 110123 
92 
William Matlou Turnitin Report 
ORIGINALITY REPORT 
SIMILARrTY INDEX INTERNET SOURCES PUBLICATIONS STUDENT PAPERS 
PRIMARY SOURCES 
Submitted to University of Mauritius 
■ Student Paper 
uir.unisa.ac.za 
Internet Source 
Subm itted to University of KwaZulu-Natal 
Student Paper 
Submitted to Mancosa 
■ Student Paper <1% 
II Submitted to Heriot-Watt University Student Paper 
II digital com mons.fi u .edu Internet Source 
II ulspace.ul.ac.za Internet Source <1% 
II scholar.sun .ac.za Internet Source 
II Submitted to University of the Free State Student Paper 
\\",.\"6"~uR~ .  
93 
mw ww.dbsa.org Internet Source <1% 
Ill Submitted to University College London Student Paper <1% 
m repository .nwu .ac.za Internet Source <1% 
m repository .u p.ac.za Internet Source <1% 
II Submitted to Universiti Teknologi Malaysia Student Paper <1% 
• 196.21.83.35 Internet Source <1% 
m www.sagepub.com Internet Source <1% 
ID www.up.ac.za Internet Source <1% 
m Submitted to Ghana Technology University <1% College 
Student Paper 
m academ icjou rnals.org Internet Source <1% 
IJ www.iwh .on.ca Internet Source <1% 
www.cidb.org.za 
94 
II lrd .yahooapis.com Internet Source <1 % 
m Amponsah , Owusu , Vigre Hakan, Torben Wilde <1 % Schou , lmoro Braimah, and Robert Clement 
Abaidoo. "The impact off armers' participation 
in field trials in creating awareness and 
stimulating compliance with the World Health 
Organization's farm-based multiple-barrier 
approach", Environment Development and 
Sustainabil ity , 2015. 
Publication 
m Submitted to Tarleton State University Student Paper <1 % 
m Submitted to Universiti Teknologi MARA Student Paper <1 % 
m www .gtac.gov .za Internet Source <1 % 
m prr. hec.gov .pk Internet Source < 1% 
• www.info.gov.za Internet Source <1 % 
11 www.projectsparadise.com Internet Source <1 % 
II www.bloemfontein.co.za Internet Source <1 % 
95 
II lrd.yahooapis.com Internet Source <1% 
11 Amponsah, Owusu, Vigre Hakan, Torben Wilde <1% Schou, lmoro Braimah, and Robert Clement 
Abaidoo. ''The impact of farmers' participation 
in field trials in creating awareness and 
stimulating compliance with the World Health 
Organization's farm-based multiple-barrier 
approach", Environment Development and 
Sustainability, 2015. 
Publication 
m Submitted to Tarleton State University Student Paper <1% 
Ell Submitted to Universiti Teknologi MARA Student Paper <1% 
m www.gtac.gov.za Internet Source <1% 
11 prr.hec.gov .pk Internet Source <1% 
ED www.info.gov.za Internet Source <1% 
www.projectsparadise.com 
■ Int ernet Source <1% 
II www.bloemfontein.co.za Internet Source <1% 
96 
IJ www.sciedu .ca Internet Source <1 % 
m collections.plymouth.ac.uk Internet Source <1 % 
• nac.org.za Internet Source <1 % 
• ksd .gov.za Internet Source <1 % 
m www.oecd.org Internet Source <1 % 
• actrm .ca Internet Source <1 % 
m wwwnew.towson.edu Internet Source <1 % 
m www.sedibeng.gov .za Internet Source <1 % 
IJ dspace.nwu .ac.za Internet Source <1 % 
m Submitted to University of Johannsburg Student Paper <1 % 
II www.coghsta.limpopo.gov.za Internet Source <1 % 
m aspire.org.za Internet Source 
97 
<1% 
II tenders.abc2bee.co.za Internet Source <1% 
II www .kznhea Ith .gov .za Internet Source <1% 
II Submitted to National College of Ireland Student Paper <1% 
II Submitted to North West University Student Paper <1% 
11 www.aimh.org.uk Internet Source <1% 
Exclude quotes On Exclude matches Off 
Exclude bibliography On