Project topics and materials
Get Complete Project Material File(s) Now! »
THE CONSTRUCT OF A PPP AND ITS IMPLICATIONS
In order to address the problem of insufficient infrastructure and poor service delivery in South Africa, perhaps PPPs should play a strategic role to address both infrastructural and other needs for the Government. The existing PPP body of language asserts that though PPP has been identified as a vehicle for service delivery, it however has both the positives and the negatives. The negatives of PPP are that it is viewed as a form privatisation by unions opposed to privatisation as a means of enhancing capacity and efficient service delivery. The unions have been mainly concerned about the erosion of job security and the acquired rights for their members (World Economic Forum, 2005:1).
The other challenge is Public Service personnel who use their own companies or that of relatives to provide service. If PPP is not well managed, the consequences hereof are the mismanagement of finances through unauthorised, fruitless or wasteful expenditure practice. The aforementioned could be regarded as a reason for the accounting officer not to be divested of the responsibility to manage the procurement of goods and services.
Tarhan (2009:9) presents a gateway process in South Africa for PPP, which encapsulates the following phases:
i. inception;
ii. feasibility study;
iii. procurement;
iv. development;
v. delivery; and
vi. exit.
The importance of each phase rests in the evaluator being able to ensure that BEE through PPP is applied in each phase. The inception phase is the first phase of the PPP project cycle. During this phase, the institution registers the project with the relevant treasury, appoints a project officer and signs a contract with the transaction advisor (National Treasury: Private Partnership Manual, 2004:6).
The second phase is feasibility study, which is a preparation phase for a PPP project cycle discussed in paragraph 4.3.3. The phase that follows feasibility study is procurement hich includes prequalification, request for proposals and the final offer. Phase 4 of the PPP cycle encapsulates managing the PPP agreement, which is discussed in 4.3.2 of this study (National Treasury: Private Partnership Manual, 2004:7).
Tarhan (2009:11-12) maintains that development as phase 4 is measuring outputs, monitoring and regulating performance and settling disputes; while delivery as phase five reports progress. Exit is the final phase which requires the Auditor-General to scrutinise the project.
ESTABLISHMENT OF A PPP
There are two basic kinds of PPPs. The one kind of PPP involves performance by the private party of an institution and the other involves some form of the utilisation of state property by a private party for its own commercial purpose. The institutional function performed by the private party may include any service, task, assignment or other function that an institution generally performs on behalf of the Public Service (National Treasury:Standardised PPP Provisions (Section D), 2004:8). The foregoing statement does not necessarily give the institutions unfettered powers to go as far as outsourcing exclusive functions to the private entity. The difficulty in as far as this limitation is concerned is that there is no legislative or legal guidance provided within which the institution should operate.
Section D1.3 states that the responsibility for determining whether an institutional function resides with an institution and whether that institutional function may be outsourced to the private sector pursuant to PPP lies with the institution. Section D2.1 points out that the utilisation of state property may broadly be pursuant to the utilisation of all movable or immovable property belonging to the state (National Treasury:
Standardised PPP Provisions, 2004:9). This may include intellectual property rights. A postulate can be made, flowing from the above statement, that outsourcing of goods and services forms an integral part of PPP. This argument remains a subject for debate in the PPP discourse.
AGREEMENTS
Of vital importance is the agreement that should be obtained by the parties concerned with PPP before signing the contract. This applies to all corporate approvals and resolutions of the board of directors and shareholders of the private party. It is not appropriate for the PPP agreement’s enforceability to be suspended pending the incorporation of the private party and the taking of all corporate action necessary to authorise the execution and performance of the PPP agreement (The National Treasury:
Standardised PPP Provisions (Section 3.4), 2004:31). The foregoing presupposes the need to conduct the feasibility study, which forms part of the vital processes that lead towards the finalisation of the PPP agreement. The PPP agreement should clearly mention the events that would constitute an institution default and which would entitle the private party to terminate the PPP agreement (National Treasury: Standardised PPP Provisions, 2004:248). The more serious breaches that render continuation of the project impossible constitute events of default.
CHAPTER 1: PUBLIC-PRIVATE PARTNERSHIP IN SOUTH AFRICA WITH REFERENCE TO THE REALISATION OF BLACK ECONOMIC 1 EMPOWERMENT
1.1 INTRODUCTION AND BACKGROUND
1.2 THE RATIONALE FOR PUBLIC PRIVATE PARTNERSHIP
THROUGH BLACK ECONOMIC EMPOWERMENT
1.3 MOTIVATION FOR THE STUDY
1.4 PROBLEM STATEMENT
1.5 RESEARCH METHODOLOGY
1.6 LIMITATIONS OF THE STUDY
1.7 LIST OF KEY TERMS
1.8 STRUCTURE OF THE RESEARCH
1.9 CONCLUSION
CHAPTER 2: THE ROLE OF PUBLIC ADMINISTRATION IN THE STUDY OF PUBLIC-PRIVATE PARTNERSHIP IN SOUTH AFRICA
2.1 INTRODUCTION
2.2 CONCEPTUAL ANALYSIS OF PUBLIC ADMINISTRATION
2.3 PUBLIC ADMINISTRATION AND ITS GENERIC FUNCTIONS
2.3.1 POLICY
2.3.2 ORGANISING
2.3.3 FINANCING
2.3.4 STAFFING
2.3.5 CONTROL
2.3.6 PROCEDURES
2.4 THE ENVIRONMENT OF PUBLIC ADMINISTRATION
2.4.1 POLITICAL FACTORS
2.4.2 ECONOMIC FACTORS
2.4.3 SOCIAL FACTOR
2.4.4 TECHNOLOGICAL FACTORS
2.5 GOVERNMENTAL FUNCTIONS
2.6 GLOBAL ENVIRONMENT
2.7 CONCLUSION
CHAPTER 3: THE CONTEXTUALISATION OF PROCUREMENT STRATEGY FOR PPP
3.1 INTRODUCTION
3.2 OUTWARD ORIENTED ECONOMY
3.3 THE FRAMEWORK FOR THE IMPLEMENTATION OF BEE
3.4 PUBLIC FINANCIAL MANAGEMENT
3.5 PROCUREMENT OF GOODS AND SERVICES
3.6 PRINCIPLES AND PHILOSOPHIES OF SUPPLY CHAIN MANAGEMENT
3.7 SUPPLY CHAIN MANAGEMENT IN PRACTICE
3.7.1 THE ELEMENTS OF GOVERNMENT’S SUPPLY CHAIN
MANAGEMENT PROCESSES
3.7.2 DEMAND MANAGEMENT
3.7.3 ACQUISITION MANAGEMENT
3.7.4 LOGISTIC MANAGEMENT
3.7.5 DISPOSAL MANAGEMENT
3.7.6 SUPPLY CHAIN PERFORMAN
3.8 DEPARTMENTAL READINESS AND IMPLEMENTATION CHALLENGES
3.9 CONCLUSION
CHAPTER 4: THE CONSTRUCT OF A PUBLIC-PRIVA PARTNERSHIP
4.1 INTRODUCTION
4.2 CONTEXUALISATION OF PPPS
4.3 THE CONSTRUCT OF A PPP AND ITS IMPLICATIONS
4.3.1 ESTABLISHMENT OF A PPP
4.3.2 AGREEMENTS
4.3.3 FEASIBILITY STUDY
4.4 CRITICAL FACTORS TO ENSURE PPP SUCCESS
4.5 THE ECONOMIC POSITIVES OF PPP THROUGH BEE AND BBBEE
4.5.1 WOMEN EMPOWERMENT
4.5.2 RURAL DEVELOPMENT
4.5.3 YOUTH DEVELOPMENT
4.6 PPP PROCUREMENT
4.6.1 VALUE FOR MONEY
4.6.2 OPEN AND EFFECTIVE COMPETITION
4.6.3 ETHICS AND FAIR DEALING
4.6.4 ACCOUNTABILITY AND REPORTING
4.6.5 EQUITY
4.7 LEADERSHIP FOR ECONOMIC DEVELOPMENT
4.8 CONCLUSION
CHAPTER 5: PROMOTION OF THE CONDITIONS FOR BEE/BBBEE IMPLEMENTATION THROUGH ETHICS AND RISK MANAGEMENT
5.1 INTRODUCTION
5.2 CORRUPTION AND THE LEGAL FRAMEWORK
5.3 ETHICS AND ACCOUNTABILITY
5.4 EFFICIENT, ECONOMIC AND EFFECTIVE USE OF RESOURCES FOR THE PROMOTION OF THE CONDITIONS FOR BEE/BBBEE IMPLEMENTATION
5.5 PUBLIC ADMINISTRATION MUST BE DEVELOPMENT ORIENTED
5.6 SERVICE MUST BE PROVIDED IMPARTIALLY, FAIRLY, QUITABLY AND WITHOUT BIAS
5.7 PUBLIC ADMINISTRATION MUST BE ACCOUNTABLE
5.8 TRANSPARENCY MUST BE FOSTERED BY PROVIDING THE PUBLIC WITH TIMELY, ACCESSIBLE AND ACCURATE INFORMATION
5.9 PUBLIC ADMINISTRATION MUST BE BROADLY EPRESENTATIVE OF THE SOUTH AFRICAN PEOPLE
5.10 DISCIPLINARY PROCEDURES
5.11 THE NEW DISCIPLINARY CODE AND PROCEDURES FOR THE PUBLIC SERVICE
5.12 PERFORMANCE DUTIES OF PUBLIC SERVANTS
5.13 FINANCIAL MISCONDUCT
5.14 NATURE OF FINANCIAL MISCONDUCT
5.15 RISK MANAGEMENT
5.15.1 HIGHRISK INDICATORS
5.15.2 MODERATE RISK INDICATORS
5.16 CONCLUSION
CHAPTER 6: GAUTENG SHARED SERVICE CENTRE AS PROCUREMENT OFFICE AND PROVIDER OF SERVICES FOR GAUTENG PROVINCIAL GOVERNMENT DEPARTMENTS
6.1 INTRODUCTION
6.2 THE ESTABLISHMENT OF THE GAUTENG SHARED SERVICE CENTRE
6.3 GAUTENG SHARED SERVICE CENTRE AS SERVICE PROVIDER
6.3.1 COMPOSITION OF BID ADJUDICATION COMMITTEE
6.4 REPORTING
6.5 THE VISION, MISSION AND VALUES
6.6 GSSC AS CENTRE OF EXCELLENCE
6.7 GAUTENG AUDIT SERVICES
6.7.1 RISK AND COMPLIANCE AUDIT
6.7.2 COMPUTER AND PERFORMANCE AUDITS
6.7.3 CONTROL RISK SELFASSESSMENT
6.8 TECHNOLOGY SUPPORT SERVICES (TSS)
6.9 PROCUREMENT SERVICE BUSINESS UNIT’S ROLE
6.10 HUMAN RESOURCE SERVICES
6.11 FINANCE SERVICES
6.12 SERVICE LEVEL AGREEMENT
6.13 CONCLUSION
CHAPTER 7: CONCLUSION AND RECOMMENDATIONS
REFERENCES
