INSTITUTE OF MANAGEMENT CONSULTANTS OF SOUTHERN AFRICA

2 September 2003

The Sunday Times (24 August 2003) calls for input for a public hearing on the "Preferential Procurement Policy Framework Act 5 of 2000"

The relevant parts are 2. (1) and (2), seeking to create certain conditions to achieve empowerment of previously disadvantaged sections of the South African society.

The Institute of Management Consultants in Southern Africa (IMCSA) endorses the intention of the legislator as transfer of knowledge is considered an integral part of consulting to management.

The IMCSA recognises however the dangers of uncontrolled entry into the market place of suppliers of goods and services who do not have the depth of knowledge to operate in the industry or profession. The consulting industry was singled out by both, the Minister of Public Service Administration in her budget speech (2002) and the Auditor General in his report to Parliament.

In further discussions with the DPSA, we were able to ascertain that (a) a proper definition of what constitutes a "consultant" did not exist and (b) that a method of contracting and monitoring the "delivery" of contracted services was not in place. This leaves a lot to the ethics of the contracted supplier. In further discussions with other professional bodies we have established that many know of poor delivery on contracted services. Unlike the medical, legal and some technical professions, most consulting services are not regulated in legislation. This leaves the buyer of such services vulnerable to abuse.

The professional bodies, operating in the services industry, have in common that they require their members to sign a code of ethics. They further offer accreditation upon examination. In short, most professional bodies act as a QA mechanism in the industry they serve.

It should thus be in the interest of the Government to support the professional bodies in their efforts and the role they play as a Quality Assurance mechanism in their respective industry.

We, the IMCSA, suggest that inclusion of the following (or a text with similar intention)

paragraph (condition) in the proposed legislation in par (d), (i) be accepted:

 

"such persons or categories of persons " should be a member (or otherwise associated) with the relevant professional body in the relevant industrial or

commercial sector of the prime issue of the tender on hand.

Such membership or affiliation should have commenced at least "some" months before the closing date of the tender."

 

Such a clause would serve to:

· to make use of the self-regulating systems for QA in the market place through professional bodies

· improve the quality of the expected delivery

· give (some) redress in case of poor delivery

· will increase peer pressure for quality delivery through networking opportunities

· will bring aspiring entrepreneurs in contact with established entrepreneurs on a professional level.

· will reduce the costs of integrating inexperienced PDI's in the tendering system

· will support the goals of the NQF (and SETA's) by bringing entrepreneurs together in a professional encounter

· will reduce the need for the kind of measures proposed in the regulation (which on its own could be considered discriminatory in nature)

We are prepared to explain the background and reasons for our submission in more detail during the scheduled hearings.

We look forward to your response. Kind regards,

Ben Laauwen

Executive Director IMCSA