KZN will officially launch its e-Procurement system next month, following nearly a year of piloting across three provincial departments. Pictured is KZN Finance MEC Francois Rodgers, whose department is spearheading the new system.
Image: Supplied
Transparency, strong controls designed to prevent and detect unauthorised activity, support for independent verification, a tamper-evident audit trail that records key events, including submission time stamps, and administrative actions, are traits embedded in the KwaZulu-Natal e-Procurement system to minimise human interference.
The e-Procurement system, which aims to combat tender fraud by eliminating human involvement in the selection process, has been piloted on three different provincial departments since 2025, and will be officially launched in April 2026.
KwaZulu-Natal Finance MEC Francois Rodgers said the system will allow for the submission of quotations and bids electronically.
He added that most small businesses already engage with the provincial government through emails, and therefore, KZN Treasury does not anticipate any challenges.
Rodgers highlighted that the e-Procurement tool will utilise official supplier records and required compliance information to automatically identify service providers in line with legislative prescripts.
The current procurement prescripts do not allow set-asides; therefore, the allocation of preferential points to targeted groups is critical, he said.
“The 30% is not a statutory set-aside, but rather each province determines targets that accounting officers must strive to achieve. Treasury reports on the progress on a quarterly basis to the Cabinet,” Rodgers said.
Describing how the system works, he said: “The system applies the criteria published for each bid. This typically includes mandatory compliance checks, functionality/technical responsiveness where applicable, pricing, and preferential procurement requirements as set out in the bid documents. Mandatory disqualification rules are applied first, followed by automated scoring based on the specified evaluation methodology. Emergency procurement, where permitted by law and policy, follows an approved exception process.”
He added that any approved deviation or manual intervention must be authorised by the designated officials, recorded with a clear reason and supporting documents, time-stamped, and retained in the audit trail for oversight and audit purposes.
On the system’s transparency, he said it is governed by strong controls designed to prevent and detect any unauthorised activity.
“These include role-based access control, segregation of duties, multi-level approvals for privileged actions, and a comprehensive audit trail that records administrative access and configuration changes. Bids are protected and access-restricted until official closing. Bids submitted are numbered and ‘sealed’ electronically, which prohibits amendments from being made,” Rodgers stated.
He mentioned that the system maintains a tamper-evident audit trail that records key events, including submission time stamps and administrative actions, and supports independent verification.
“Independent auditors can validate the integrity of submitted bid documents and related events through recorded checks and time stamps, and can test whether logs are complete and consistent with the documented governance controls. Audit log retention and access are governed to prevent alteration without detection, and independent assurance forms part of the oversight approach,” Rodgers explained.
He stated that the three departments that are undergoing the pilot have had systems training while they develop standard operating procedures.
The system, he said, will not reject any service provider; it will recommend a preferred bidder with reasons. Service providers are entitled to obtain reasons for their non-responsive bid, but that will not be generated from the system, but rather from engagement with the respective department’s Supply Chain Management (SCM) team,” Rodgers explained.
He added that the SCM system will, in time, integrate with the accounting and payment system (BAS).
“Payments can only be processed once authorised, and the end user is reviewed by internal control. The system cannot force payments to be made, as compliance is critical to ensure that processes are followed correctly.”
He assured the public that the government remains committed to fairness and full legal compliance in all its processes. In the event of a system glitch occurring closer to a major tender deadline, he said, the normal review and appeal processes continue to apply.
Lars Gumede, a tech expert and founder of NowNow, said the system would have to be completely transparent, show all of the thinking of the automated system, and make that publicly available for everyone to see.
He warned that if not, the system could end up being even worse if it doesn’t prioritise transparency.
“The algorithm itself needs to be transparent, and we need to know exactly what the algorithm does and what it emphasises, to avoid a situation where someone creates an algorithm that would further the problem of biased human involvement,” Gumede said.
The entire process must be completely open source and transparent for everyone to see whether the system biases big technologies, savvy users, and phones, or not. The system can understand the context and address its selections in a more context-friendly way, he said.
Gumede stated that to maximise the probability of the automation being done properly, everything must be as transparent as possible and open for the public to see.
“It should not have a false transparency in which we have an automated system, but other parts of it are not transparent, such as the algorithm and the selection processes,” he said.
This, he said, would help address public concerns and resolve disputes in decisions made through automation.
Professor Purshottama Reddy, a Public Governance specialist at the Graduate School of Business and Leadership at the University of KwaZulu-Natal, said there is a need for serious consequence management for any transgressions, especially in the procurement space, to deter any future violations.
“The post-1994 South African Government has introduced a suite of legislation/policies to transform the public procurement space in the past three decades. The policies in place have largely addressed the key issues and challenges in the procurement sector. I am of the view that we do not need any more legislation or policies in the public procurement space,” Reddy stated.
He said what is required, as a matter of urgency, is effective and firm implementation of existing legislation and policies; and serious consequence management for any transgressions, which will serve as a deterrent for any future violations.
“We also need public functionaries — both politicians and officials who are morally upright and working in the public interest. They should be public-spirited, passionate about service delivery, and above reproach. Ethical conduct and behaviour need to be reinforced in the public sector in this regard.”
He stated that the citizenry should have full confidence in the public procurement system, and the public services procured should be of a high quality and responsive to the needs of the populace.
“South Africa is a developing country, and the majority of the citizenry does not have internet connectivity. Small businesses, particularly those in rural areas, may be disadvantaged in participating in the public procurement system. Consequently, the public procurement system will not be readily accessible to small businesses and NGOs. Perhaps we can take a cue from India, which has prioritised digital transformation to the extent that even street traders can be paid electronically.”
Reddy highlighted that there should be constant monitoring and evaluation of contracts to ensure the work has been satisfactorily done and there is value for money, as provided for by the legislation.
gcwalisile.khanyile@inl.co.za