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An analysis of the public procurement models applied by the South Africa’s National Health Laboratory Services

Thesis (MCom)--Stellenbosch University, 2023.

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Main Author: Shaku, Matlaweng Stanley
Other Authors: Rabie, Babette
Format: Thesis
Language:en_ZA
Published: Stellenbosch : Stellenbosch University 2023
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access_status_str Open Access
author Shaku, Matlaweng Stanley
author2 Rabie, Babette
author_browse Rabie, Babette
Shaku, Matlaweng Stanley
author_facet Rabie, Babette
Shaku, Matlaweng Stanley
author_sort Shaku, Matlaweng Stanley
collection Thesis
dc_rights_str_mv Stellenbosch University
description Thesis (MCom)--Stellenbosch University, 2023.
format Thesis
id oai:scholar.sun.ac.za:10019.1/129125
institution Stellenbosch University (South Africa)
language en_ZA
last_indexed 2026-06-10T12:41:34.416Z
license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository
publishDate 2023
publishDateRange 2023
publishDateSort 2023
publisher Stellenbosch : Stellenbosch University
publisherStr Stellenbosch : Stellenbosch University
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source_str SUNScholar — Stellenbosch University Repository
spelling oai:scholar.sun.ac.za:10019.1/129125 An analysis of the public procurement models applied by the South Africa’s National Health Laboratory Services Shaku, Matlaweng Stanley Rabie, Babette Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership. Government purchasing -- South Africa Public contracts -- South Africa Government purchasing -- Law and legislation -- South Africa UCTD Thesis (MCom)--Stellenbosch University, 2023. ENGLISH SUMMARY: This research project focuses on the factors that influence the effective and efficient purchasing of goods, services, and assets by the National Health Laboratory Services (NHLS). In three recent audit reports, NHLS procurement challenges were raised. This included instances of irregular expenditure, improper record keeping, a lack of internal controls and unspent funds. A literature review informs the identification of alternative procurement models, including a centralised control, a decentralised approach and a hybrid approach to ensuring effective, efficient and accountable procurement. The literature review is complemented by a review of the policy and legal environment that governs procurement in the public sector, and in the NHLS specifically. The empirical component of the study explores the current procurement model of the NHLS, as well as the relevance of alternative models within the legal framework. Deductive reasoning informed the development of a questionnaire to explore the relevance of the models in terms of effectiveness, cost and legal alignment. Data was collected from 22 workers of the NHLS in the categories of executive managers, financial managers/controllers, administrative (business) managers, and supply chain management/procurement staff, who are referred to as respondents in this document. Data was analysed using thematic and Excel descriptive analysis. The study finds that the centralised model of procurement provides the Head Office with more control and oversight of procurement. However, it leads to work overload for head office staff and underutilisation of capacity in the regions. A decentralised model limits the control of Head Office over procurement operations in the regions, but capacitates regional managers to manage their operations in a manner that is more aligned with the local context. A hybrid model that offers elements of both centralised and decentralised procurement offers great advantages, but may lead to the duplication of effort and processes. The study recommends that a hybrid model is the most suitable model to enable effective and efficient service delivery by the NHLS. Implementation of the model should ensure alignment with the policy and legal environment. Although the chosen model cannot be blamed in totality for the inefficiency and ineffectiveness of the procurement processes, there are several noticeable changes that need to be made. Poor service delivery is largely caused by an inadequate procurement procedure, lack of automated processes, and insufficient qualified human capacity. The study recommends that, to maximise the benefits of the procurement model, its structure, processes, policies and monitoring interventions should be in line with the organisation’s strategy. The limitations, processes and duties related to procurement should be stated clearly and documented accurately in the NHLS. AFRIKAANSE OPSOMMING: Hierdie navorsingsprojek fokus op die faktore wat die effektiewe en doeltreffende verkryging van goedere, dienste en bates deur die Nasionale Gesondheidslaboratoriumdienste (NGLD), oftewel National Health Laboratory Services (NHLS)) beinvloed. In drie onlangse ouditverslae is die verkrygingsuitdagings in die NGLD uitgelig. Dit het gevalle van onreelmatige uitgawes, onbehoorlike rekordhouding, ’n gebrek aan interne beheermaatreels en onbestede fondse ingesluit. ’n Literatuuroorsig lig die identifikasie van alternatiewe verkrygingsmodelle in, insluitend gesentraliseerde beheer, ’n gedesentraliseerde benadering en ’n hibriede benadering tot die versekering van effektiewe, doeltreffende en verantwoordbare verkryging. Die literatuuroorsig is aangevul deur ’n hersiening van die beleids- en wetlike omgewing wat verkryging in die openbare sektor reguleer, spesifiek in die NGLD. Die empiriese komponent van die studie verken die huidige verkrygingsmodel van die NGLD, asook die relevansie van alternatiewe modelle binne die wetlike raamwerk. Deduktiewe redenasie het die ontwikkeling van ’n vraelys ingelig om die relevansie van die modelle in terme van effektiwiteit, kostes en wetlike belyning te verken. Data is vanaf 22 werkers van die NGLD verkry wat geval het onder die kategoriee van uitvoerende bestuurders, finansiele bestuurders/beheerders, administratiewe (sake) bestuurders, en voorsieningskettingsbestuur/verkrygingspersoneel. Daar word na hulle verwys as respondente in hierdie dokument. Die data is by wyse van tematiese en Excel-beskrywende analise geanaliseer. Die studie het gevind dat die gesentraliseerde model van verkryging die hoofkantoor meer beheer en toesig oor die proses gee. Dit lei egter tot ’n oorlading van werk vir hoofkantoorpersoneel en onderverbruik van die kapasiteit in die streke. ’n Gedesentraliseerde model beperk die beheer van hoofkantoor oor verkryging in die streke, maar bekwaam streeksbestuurders om hulle bedrywighede te bestuur op ’n wyse wat meer in lyn is met die plaaslike konteks. ’n Hibriede model wat elemente van beide gesentraliseerde en gedesentraliseerde verkryging bied, verskaf groot voordele, maar kan lei tot duplisering van inspanning en prosesse. Hierdie studie se aanbeveling is dat ’n hibriede model die geskikste model is om effektiewe en doeltreffende dienslewering deur die NGLD te verseker. Die implementering van die model moet belyning met die beleids- en wetlike omgewing verseker. Hoewel die verkose model nie in sy geheel geblameer kan word vir die ondoeltreffendheid en oneffektiwiteit van die verkrygingsprosesse nie, is daar etlike veranderinge wat gemaak moet word. Swak dienslewering word grootliks veroorsaak deur ’n onvoldoende verkrygingsprosedure, gebrek aan geoutomatiseerde prosesse en onvoldoende gekwalifiseerde menslike kapasiteit. Die studie beveel aan dat om die voordele van die verkrygingsmodel te maksimeer, sy strukture, prosesse, beleide en monitering van intervensies in lyn moet wees met die organisatoriese strategie. Die beperkings, prosesse en pligte wat verband hou met verkryging moet duidelik uiteengesit word en akkuraat in die NGLD gedokumenteer word. Masters 2023-11-30T21:58:15Z 2024-01-08T23:19:02Z 2023-11-30T21:58:15Z 2024-01-08T23:19:02Z 2023-12 Thesis https://scholar.sun.ac.za/handle/10019.1/129125 en_ZA Stellenbosch University xi, 77 pages : illustrations, includes annexures application/pdf Stellenbosch : Stellenbosch University
spellingShingle Government purchasing -- South Africa
Public contracts -- South Africa
Government purchasing -- Law and legislation -- South Africa
UCTD
Shaku, Matlaweng Stanley
An analysis of the public procurement models applied by the South Africa’s National Health Laboratory Services
title An analysis of the public procurement models applied by the South Africa’s National Health Laboratory Services
title_full An analysis of the public procurement models applied by the South Africa’s National Health Laboratory Services
title_fullStr An analysis of the public procurement models applied by the South Africa’s National Health Laboratory Services
title_full_unstemmed An analysis of the public procurement models applied by the South Africa’s National Health Laboratory Services
title_short An analysis of the public procurement models applied by the South Africa’s National Health Laboratory Services
title_sort analysis of the public procurement models applied by the south africa s national health laboratory services
topic Government purchasing -- South Africa
Public contracts -- South Africa
Government purchasing -- Law and legislation -- South Africa
UCTD
url https://scholar.sun.ac.za/handle/10019.1/129125
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