Pietermaritzburg: KwaZulu-Natal Finance MEC Francois Rodgers has unveiled the province’s new digital Supply Chain Management (SCM) system, which aims to reduce wasteful expenditure, fraud, corruption, and bias in government procurement processes. Speaking at the official launch in Pietermaritzburg on Tuesday, Rodgers announced that KwaZulu-Natal is the first province in South Africa to implement such a system, which is set to be piloted during the management of the province’s R158 billion budget in the 2025/2026 financial year.
According to South African Government News Agency, Rodgers acknowledged that the province has experienced numerous challenges linked to the manual procurement system, which he described as a major source of irregularities. Rodgers stated that the root of fraud, corruption, irregular, and wasteful expenditure can often be traced back to SCM processes, making the implementation of a digital procurement system a priority.
The digital procurement platform is expected to enforce transparency and efficiency in procurement processes, minimize SCM fraud, corruption, and bias, and enable a fair environment for all stakeholders involved. It will replace manual submissions, reduce human errors, and create audit trails to foster accountability. The system will empower suppliers to compete on a level playing field and ensure targeted procurement from priority groups. It aims to reduce irregular expenditure through effective planning and contract management while ensuring compliance with SCM policies and regulations.
The system will allow for budget blocking at the requisition creation stage and price benchmarking to ensure value for money and market-based negotiations. Rodgers noted that the system has received approval from the National Treasury, with full implementation expected between January 2026 and April 2027 in selected departments. The set-up costs are projected to range from R3 million to R5 million, with R20 million already allocated from savings through cost-cutting measures and curbing wasteful expenditure.
In addition to the digital SCM system, KwaZulu-Natal will also establish a Provincial Data Analysis Centre. This centre will facilitate the analysis of provincial financial data, enabling MECs and departmental management to make informed financial decisions. Rodgers highlighted that the centre will feature a comprehensive financial dashboard, allowing real-time monitoring of provincial finances.
The dashboard will enable provincial government leaders to monitor expenditure and revenue collection to address issues of over-spending and under-collection. It will also allow live monitoring of human capital trends across departments. Rodgers emphasized that the dashboard is crucial for developing an ethical and capable state and will aid in determining the quantum of accruals and debts, ensuring governance committees meet, and verifying that invoices are paid within 30 days.