Procurement Risk:
Moderate
Score:
51/100
Government Policy
Q57
38/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
View Question
This indicator is not assigned a score in the GDI. According to Interviewee 2, defence and security procurement is split into two overarching categories.…
Explore
According to interviewee 2, the DAHB 1000 and general acquisitions process is an improvement over previous acquisitions policies in terms of corruption enforcement. The…
Explore
The DAHB 1000 and the overarching acquisitions process is a new policy and thus has not had many significant tests in terms of its…
Explore
Q58
42/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
View Question
Procurement: which pertains to regular non-strategic items (eg catering, fuel, etc) is largely governed by regular government procurement legislation. This takes the form of…
Explore
Procurement is disclosed following the Public Finance Management Act (PFMA) and a competitive tender bidding process is generally followed, with the exception of 57C,…
Explore
Procurement is disclosed following the Public Finance Management Act (PFMA) and a competitive tender bidding process is generally followed, with the exception of 57C,…
Explore
Q59
100/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
View Question
The Public Finance Management Act (PFMA) legislation and Joint Standing Committee on Defence – which is an oversight mechanism including the PFMA – largely…
Explore
Procurement oversight pursues a rigorous process in investigating irregularities. The Joint Standing Committee Defence (JSCD) is able to summon expert witnesses, documents and files…
Explore
Activity is published by the relevant state organs, civil society watchdogs, and the media. No interference in these activities is evident. The minutes of…
Explore
Planning for major acquisitions (note: not procurement) is discussed and detailed through the Strategic Capital Acquisition Master Plan (SCAMP) process [1]. SCAMP is considered…
Explore
According to interviewee 2, planned acquisitions were robustly discussed and debated within the defence force [1]. Media reports also show information on planned purchases…
Explore
Defence acquisitions and procurement notices are made public, with the exception of sensitive or restricted items. These are listed through the Department of Defence’s…
Explore
Data is released broadly via annual reports and appendices from the DoD and Armscor. Defence procurement data is regularly updated and listed via the…
Explore
Capability Gap and Requirements Definition
Q62
NEI/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
View Question
All bidders are required to sign the General Conditions of Contract (for all tenders in South Africa)[1]. For South African National Defence Force (SANDF)…
Explore
There is not enough information to score this indicator. It is unclear how consistently bidders/companies are held to account in terms of compliance and…
Explore
Q63
83/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
View Question
All armament acquisitions within the Department of Defence (DoD) are required to go through numerous review and assessment steps, with the requirement being validated…
Explore
There are overlapping responsibilities within the DoD to audit acquisition projects. The Inspector-General of the Department of Defence (IG-DoD) conducts both quinquennial large-scale planned…
Explore
According to interviewee 2, all acquisitions since the 1999 Arms Deal have been conducted in line with first DAP 1000 and its successor Defence…
Explore
Tender Solicitation, Assessment and Contract Award
Q64
NEI/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
View Question
In terms of both Defence Acquisition Handbook DAHB 1000[1] (for acquisitions) and the Public Finance Managing Act (PFMA) and National Treasury instructions (for procurement)[2],…
Explore
Deviations from standard multi-source procurement and acquisition are subject to audit oversight by the secretary for defence and auditor-general [1] along with parliamentary oversight…
Explore
Q65
88/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
View Question
Regulation 16A8.4 of the Public Finance Management Act (PFMA) states that if any supply chain management official, or any role player, close family member,…
Explore
Under National Treasury regulations relating to the Framework for Supply Chain Management, bid evaluation and bid adjudication committees are required to maintain complete records…
Explore
All tender-related regulations and codes of conduct are made publicly and easily available by National Treasury [1].
Explore
The auditor-general is tasked with this role of conducting external audits/verification of tender processes/awards [1]. They are considered to be generally robust.
Explore
Q66
75/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
View Question
The following text is included as part of the Certificate of Independent Bid Determination (Standard Bidding Document 9) [1], it is included in every…
Explore
The Prevention and Combating of Corrupt Activities Act 12 of 2004 and Competition Act 89 of 1998 set out clear guidelines for remedies and…
Explore
Collusion between companies is investigated by the Competition Commission of South Africa [1], which can refer cases to the Competition Tribunal for prosecution, The…
Explore
The Competition Commission is able to identify collusion patterns and refer possible malpractice to the Competition Tribunal for investigation. These officials are not specifically…
Explore
Contract Delivery and In-Service Support
Q67
50/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
View Question
The Defence Acquisition Handbook (DAHB) 1000 [1] provides a detailed process for monitoring and assessment of supplier obligations and meeting specifications (for acquisitions) [2].…
Explore
Contracts are made publicly available via the Armscor tender bulletin. They include details on the contractor award date, but they do not strictly name…
Explore
For acquisitions, contract monitoring is undertaken and the relevant reports are produced, including performance appraisals. Procurement, however, is less reliable, and largely similar in…
Explore
Broader issues of fraud and corruption are detailed in terms of specific cases prosecuted and their results through the Department of Defence (DoD) Annual…
Explore
Q68
58/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
View Question
The Department of Defence (DoD) actively creates awareness and training on reporting malpractice in all aspects of fraud and corruption. A DoD whistle-blowing hotline…
Explore
The complaints mechanisms are generally cost-free, at least in initial tip-offs or lodging of official grievances. Litigation and post-complaint consequences, however, are rather costly.…
Explore
As mentioned above, the effectiveness of these mechanisms is undermined by a general reluctance to report malfeasance if it causes a negative backlash on…
Explore
Suppliers and their directors that have been convicted of corruption under the Prevention and Combating of Corrupt Activities Act, No 12 of 2004 [1]…
Explore
There is a very low conviction rate under the Prevention and Combating of Corrupt Activities Act, with only 135 convictions were secured out of…
Explore
A conviction under the Prevention and Combating of Corrupt Activities Act can result in severe fines, imprisonment of company directors, and exclusion from future…
Explore
Offset Contracts
Q70
13/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
View Question
According to a 2013 article written by Peter Platzgummer, the usage of arms trade offsets to bribe public officials has been one – if…
Explore
The most recent, large-scale example of due diligence measures enacted during offset negotiations on offsets is the Strategic Defence Procurement Packages, or “Arms Deal”.…
Explore
There are formal policies and procedures outlining reporting and delivery obligations for offset contract – these are found in the 2013 revised National Industrial…
Explore
Contracts are actively listed on the Armaments Corporation of South Africa (Armscor) Tender Bulletin, with National Industrial Participation Programme (NIPP), and Defence Industrial Participation…
Explore
National Industrial Participation Programme (NIPP) guidelines clearly state performance reviews and constant updates are required as part of the programme. “The parties must hold…
Explore
It is unclear from the National Industrial Participation Programme guidelines policy document whether action is taken in the event of a breach of contract…
Explore
Offset contracts through both the National Industrial Participation Programme (NIPP) and the Defence Industrial Participation Programme (DIPP) are subjected to the same levels of…
Explore
Agents / Brokers
Q73
0/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
View QuestionFinancing Package
Q74
0/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
View Question
The only arms acquisition of the past twenty years to have been financed with commercial loans or external credit agreements was the 1999 Strategic…
Explore
Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
View Question
This indicator is not assigned a score in the GDI. There are credible claims that substantial political pressure, particularly by the British government, was…
Explore
This indicator is not assigned a score in the GDI. The most recent major acquisition, Project Biro for offshore patrol vessels, was strongly justified…
Explore
This indicator is not assigned a score in the GDI. There is a lack of evidence showing any acquisitions undertaken as a result of…
Explore