National Treasury’s Chief Procurement Officer Kenneth Brown says as much as 40% of Government’s R600 billion goods and services budget is consumed by inflated prices by suppliers – and by fraud.
Brown sites an example of a paper binder that government buys for R25 000 – 13 times what it costs in the shop.
"It means, without adding a cent, the government can increase its output by 30%-40%," said Brown.
"We could be building more roads, more schools without even adding more money to the current budget."
The Money Show’s Bruce Whitfield interviewed Brown.
Scroll down for quotes from the audio below.
We’re spending about R1.8 billion on Microsoft. We’re busy with some serious renegotiations.— Kenneth Brown
We’re renegotiating a number of leases. Government spends about R5.6 billion a year on leases.— Kenneth Brown
We’re looking at the fee structure of construction professionals.— Kenneth Brown
South Africa’s procurement system is way too paper based!— Kenneth Brown
Recommendedby THE NEWSROOM
What is a “lifestyle audit”? The Money Show’s Bruce Whitfield interviewed ENS Africa Director in Forensics Steven Powell.
Advertising expert Andy Rice loves the Hyundai Creta ad, but hates the one for the Mitsubishi ASX.
The Money Show’s Bruce Whitfield interviews The Glass Recycling Company CEO Shabeer Jhetam.
The Presidency says it values open dialogue, but that it must take place “within the bounds of human decency and decorum".
"Zuma must go. When you are the president who literally laughs off any suggestions that government be held to a higher standard…"
Treasury wants legislation to help it keep tabs on individuals in positions of power in the public and private sectors.
Sunday Times journo Thanduxolo Jika who broke the front page story about the Gupta family emails vouches for their authenticity.
Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.
"My earliest memory of money is my father saying, ‘Why do you want to do this thing? How are you going to feed the family?'"
The EFF lawyer stole the show during the state capture report court battle.
Want (or need) a new car? Dale Scorer (a wealth manager at AlphaWealth) reckons you should consider leasing.
WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...
Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?