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Every 12 months, South Africa has to find billions of rands in extra funding thanks to public and private sector purchasing officials going rogue.
“Whether you call it ‘maverick spend’ or ‘non-Purchase Order spending, unstructured purchasing is a huge driver of supply chain inefficiency in South Africa,” says Adriaan Venter, CEO of Cube ICT Solutions, a leading managed ICT services provider.
Most recently, it was reported that national departments alone racked up R4.9 billion in unauthorised expenditure in a single fiscal year.
Anecdotal evidence suggests the private sector is not immune to unstructured and non-compliant procurement practices. While these costs are seldom publicly disclosed, they contribute significantly to operational inefficiencies and unnecessary expenditure.
