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A holistic approach to bid-rigging in public procurement: The experience of South Africa

A holistic approach to bid-rigging in public procurement: The experience of South Africa. 27 June 2013. Presenter: Shan Ramburuth, Commissioner. History. 2009/10 Influx of CLPs in construction. 2008 Consent orders – for bid rigging in public procurement of intravenous products.

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A holistic approach to bid-rigging in public procurement: The experience of South Africa

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  1. A holistic approach to bid-rigging in public procurement:The experience of South Africa 27 June 2013 Presenter: Shan Ramburuth, Commissioner

  2. History 2009/10 Influx of CLPs in construction 2008 Consent orders – for bid rigging in public procurement of intravenous products 2010 - present Holistic approach: enforcement, training, advocating for policy changes 2006 Commission prioritises bid-rigging in its 2006-2009 Strategic plan

  3. Designing a holistic approach

  4. Advocating for policy changes • Targeting key government bodies (National Treasury, PALAMA) • Raising awareness about the harmfulness of bid-rigging. • Ensuring that training on bid rigging was included as part of the supply chain management curriculum of government’s public service training academy. • Advocating for the banning of offenders from public work.

  5. Training With the support of the OECD and Netherlands Competition Authority Procurement officials were trained on how to identify, detect and report rigged bids. Over 500 procurement officials trained country-wide. Bid-rigging is now part of the curriculum for government procurement officials.

  6. Introduction of the CIBD • The Commission and South Africa’s National Treasury officially launched its use of the Certificate of Independent Bid Determination (CIBD) in August 2010. • The CIBD requires all bidders for government tenders to declare that they have not colluded in the bidding process. • The Supply Chain Management General Conditions of Contract have also been amended to provide for the “prohibition of collusive tendering”.

  7. Enforcement Construction Fast Track Settlement Process

  8. Dealing with offenders • Name & shaming government employees and private individuals who defrauded departments, institutions and municipalities. • Banning colluders from public sector work.

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