New KZN procurement system piloted during spending of R158-billion budget

In an effort to curb fraud and corruption relating to government spending, KZN has officially launched the country’s first digital procurement system.

Finance MEC Francois Rodgers said the system will be piloted during the spending of the province’s R158-billion budget for the 2025/26 financial year.

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He said the move aims to reduce wasteful expenditure, fraud, corruption and bias in the government’s supply chain management (SCM) processes.

“It is common cause that the provincial government has experienced numerous challenges with the manual procurement system. Generally, the root of fraud, corruption, irregular and wasteful expenditure can be found in our SCM processes,” said Rodgers.

“The implementation of a digital procurement system has become a priority. The electronic system will also foster a culture of openness, empowering suppliers to compete on a level playing field, irrespective of their size or background, while ensuring targeted procurement from priority groups.”

He explained it will also allow for price benchmarking ‘to ensure the province obtains value for money and negotiates based on market prices’.

The new SCM digital system follows an announcement earlier this month of a cash management system (CMS) that would be implemented in seven municipalities, including Nkandla, uMfolozi and Ulundi.

KZN Treasury said the system aims to resolve a myriad of financial management challenges at local government level, including overspending, implementation of debt collection and credit control policies, as well as management and utilisation of conditional grants.

“Ultimately, the CMS aims to improve service delivery, ensure timeous payments to service providers, and reduce budget deficits at local government level,” said Rodgers.

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