Public procurement practices : the case of the Road Accident Fund

Abstract: Public procurement in South Africa is regarded as a strategic tool and a key mechanism to achieve social and economic objectives in order to improve the lives of citizens. Section 217(2) of the Constitution and the Preferential Procurement Policy Framework Act (PPPFA) provides for the use of public procurement as a means of development and transformation in the public sector. This study explored public procurement practices at the Road Accident Fund (RAF) and highlighted the challenges faced by the organisation when acquiring goods and services. Policies and regulations that guide procurement practices both in the public sector and at the RAF were also examined. To achieve the objectives of the study, a survey design was used. Data was collected through a structured questionnaire using a five-point Likert scale. A descriptive research approach was employed with descriptive statistics such as frequencies and reliabilities which measured mean, mode and standard deviation. The target population consisted of RAF employees within the procurement department. Purposive sampling was used to select the sample which comprised top level, middle level and low level management as well as administrative staff. The data was checked for completeness and consistency and coded for analysis using the SPSS version 25 statistical package. The key results of the study suggest that there are inconsistencies in the implementation of procurement policies and regulations. The application of the pre-qualification criteria continues to be the main challenge at the RAF. The study also revealed that the lack of well-defined procurement objectives has led to employee misconceptions about how to procure goods and services. The paper concluded that public procurement practices at the Road Accident Fund can be improved through continuous training and the provision of clear guidelines on procuring goods and services. The key contribution of this study is to advise on the improvement of procurement practices. This study builds upon existing research through the application of a holistic approach to the procurement of goods and services. The research thus bridges academic theory and real-life situations in order to improve procurement practices.M.Com. (Business Management