KZN launches technological tools to curb fraud and wasteful expenditure

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 system, which is set to be piloted during the management of the province’s R158 billion budget in the 2025/2026 financial year.

Rodgers acknowledged that the province has experienced numerous challenges linked to manual procurement system, which he described as a major source of irregularities.

“Generally, the root of fraud, corruption, irregular and wasteful expenditure can be found in our SCM processes. The implementation of a digital procurement system has become a priority,” Rodgers said.

According to Rodgers, the digital procurement platform implementation may derive in the following benefits:

•    Enforcing transparency and efficiency in procurement processes. Minimizing supply SCM fraud, corruption, bias, and enabling a fair and just environment for all stakeholders involved.
•    Replacing all manual submissions and reduce human errors and the creation of audit trails which will foster accountability at all levels.
•    The electronic system will also foster a culture of openness, empowering suppliers to compete on a level playing field, irrespective of their size or background, whilst ensuring targeted procurement from priority groups. 
•    Reduction of irregular expenditure through effective planning and contract management.
•    Compliance with SCM policies and regulations.
•    The system will allow for budget blocking especially at requisition creation stage.
•    The system will allow for price bench marking to ensure that the province obtains value for money and negotiates based on market prices.

Rodgers said the system has been approved by National Treasury, with full implementation expected to take place between January 2026 and April 2027, in the selected departments.

He said set-up costs are expected to range from R3 million to R5 million, with R20 million already allocated from the funds saved by the MEC through cost-cutting measures and curbing wasteful expenditure.

Provincial data analysis centre 

In another first for KwaZulu-Natal, Rodgers announced that the Provincial Treasury will be setting up a Data Analysis Centre, which will allow the analysis of provincial financial data to enable MECs and all departments’ management to make timeous and informed financial decisions.

Rodgers said the centre will feature a comprehensive financial dashboard, which will allow real-time monitoring of provincial finances by MECs and departmental leadership.

“This tool will allow us to observe total expenditure and revenue collection to address timeously issues of over-spending and under-collection. The dashboard will also enable provincial government leaders to live-monitor human capital trends in all departments.

“The dashboard is imperative to the development of an ethical and capable state. It will also aid in the determination of the quantum of accruals (invoices received and not paid), quantum of debts (monies owed to government), whether governance committees are meeting and whether all invoices are paid within 30 days,” Rodgers said.

He added that through the dashboard, the provincial government will be able to tell the extend of critical vacancy rates across government departments. – SAnews.gov.za