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Definition

This is the buying of goods and services by the government from the private sector. In South Africa procurement has been highly controversial with many instances of corruption, the most notable being the procurement of personal protective equipment (PPE) bought by the government to contend with the COVID-19 crisis. Procurement is governed by the Preferential Procurement Policy Framework Act (5 of 2000) which gives preference to those tenders where the company has a particular status in terms of the Broad-Based Black Economic Empowerment Act (53 of 2003). The government's website on procurement says, "Supply Chain Management is the process followed to ensure that the procuring of goods and services is fair and transparent. This process follows 4 stages viz: Demand Management, Acquisition Management, Logistic Management and Disposal Management." Despite all the good intentions, there can be no doubt that billions of rands have been lost through corrupt allocation of tenders, over-invoicing and other activities. This was especially true during the Zuma/Gupta period.

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