improving probity in public sector supply chains · ethics, probity and accountability in...

Brought to you by

Improving Probity in Public Sector Supply ChainsShaun Scott

COMPANY LOGO HERE

Tweet your questions to the speaker LIVE @SmartProcure

Discussion Points

– Public Sector SCM and Procurement Context

– Why Probity and What is Probity?

– How to Improve Probity in Your Organisation?


The Constitution of the Republic of South Africa, 1996 Act 108 of 1996, Section 217

“(1) When an organ of state in the national, provincial or local sphere of government, or

any institution identified in national legislation, contracts for goods or services, it must do so

in accordance with a system which is fair, equitable, transparent, competitive

and cost-effective.”


Transparency International – Corruption Perceptions Index 2012

Least Corrupt:1. Denmark1. Finland1. New Zealand4. Sweden5. Singapore

Worst:172. Myanmar173. Sudan174. Afghanistan174. Korea (North)174. Somalia


Transparency International – Corruption Perceptions Index – Ranking 2003 to 2012

0

20

40

60

80

100

120

140

160

180

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

Russia

Nigeria

Brazil

South Africa

Ghana

Botswana

69th

43rd


Procurement in New Zealand

• “When evaluation panel’s are scoring submissions, our top of mind focus must always be on ensuring our individual and collective behaviours meet appropriate standards of probity.”

• “Probity file checklist”• “Probity Audits and Official Information Act

requests related to your evaluation and records”


Procurement in Singapore

“Three procurement principles embedded:– practices which are fair and so create a level

playing field for all would-be suppliers;– public is given value for money so that goods

and services purchased represent the most effective and efficient use of public revenue; and

– maintain the highest standards of probity in the procurement process, so minimizing the possibility of corruption.”


Probity Definitions

The quality of having strong moral principles; honesty and decency.

Complete and confirmed integrity; uprightness.

Confirmed integrity; uprightness.

The Oxford Pocket Dictionary of

Current English 2009

Collins English Dictionary – Complete and Unabridged

The American Heritage® Dictionary of the

English Language, Fourth Edition copyright


Probity in a Procurement Context

….the evidence of ethical behaviour in a particular process….

….adequately documented to demonstrate probity and fairness of key decisions and procedures…

…ensuring the integrity of procedures and processes put in place to provide fairness and

transparency in purchasing decisions….

Ethics, Probity and Accountability in Procurement, Queensland,

Department of Public Works Crime and Misconduct Commission, 2006

Probity in Australian Government Procurement,

Australian National Audit Office 2008

Procurement Policy Guide, Massey University,

New Zealand, 2009


How to Improve Probity?

• Secretarial Services– Responsibility of Supply Chain Management Unit– Competent, Resourced and Professional



• Recording Capability - Draft Regulations (TR16A):– The proceedings of committees must be recorded mechanically to enable

the preparation of verbatim reports when required by a court of law. Recordings must be kept in a safe, conducive environment for a period of no less than five years after the lapse or cancellation of the contract or in terms of the Archive Act.


• Code of Conduct

– Educate & Train

– Internalise

– All Role Players




• Records Management:

– Filing

– Retrieval



• Processes and Check Lists– Auditable– Assists in record

management and compliance

– Detailed:– SBD/MBD 4– SBD/MBD 6.1– SBD.MBD 6.2

– Probity checklists



• Probity Plan– more-complex and higher-risk procurement. Taking into

consideration the scale and sensitivity of the purchase, a probity plan is a means to identify and manage probity risks

• Probity Advisors– Advice and assistance before and during the course of the procurement

process, as a basis for improving the procurement outcome and addressing unexpected probity issues that arise

• Probity Auditors– Independent scrutiny of a procurement process and expresses an

objective opinion as to whether the prescribed probity requirements have been adhered to



• Probity Tools Probity Risk Assessment ToolTender name

Date of assessment 12/07/2013

Conducted by

Risk Rating

Probity Risk Assessment Results

Tender Characteristics

Conflict of interest/Confitentiality

Overall Probity Risk Rating is

Recommended action

Tender for the xxxxxxx

A tender with a HIGH probity risk rating will require the appointment of a probity practitioner. It is also advisable to examine those areas of the assessment with high scores to determine if additional treatment of the risk is required before continuing with the tender process.

A tender with a MEDIUM probity risk rating requires careful considation of the appointment of a probity practitioner. The decision will need to be based on a balance of the risks identified against the costs involved in that appointment. Areas identified at a medium or higher rating should be examined for opportunities for improvement and reduction of the risk.

A tender with a LOW probity risk may not require a probity practitioner.

H S Carelse

medium

Medium

High

High

Brought to you by

COMPANY LOGO HERE

In closing

• Our transparency practices are just not enough

• There are lessons and practices we can learn from others

• Addressing the basics can make a significant impact

• Don’t just make your current job a dress rehearsal for the next

improving probity in public sector supply chains · ethics, probity and accountability in...

Documents