Procurement practices employed within the commuter bus industry in the Gauteng Province of South Africa

Abstract

The purpose of this study is to explore procurement practices employed within the commuter bus industry in Gauteng. The contemporary procurement practices employed within the commuter bus industry in Gauteng have propagated a number of challenges for this industry, including a deficit in the allocated funds and a lack of coordinated relationship between the relevant stakeholders. This study is both descriptive and exploratory in nature and employed a mixed-method research approach to collect the research data. The data was collected from a sample of 18 respondents who are key stakeholders directly involved in the procurement of subsidised commuter bus services in Gauteng by means of a face-to-face interview using a semi-structured questionnaire. The findings of the study revealed that there are three types of procurement practices employed within the commuter bus industry, namely, interim, negotiated and tender contracts. However, all these contracts are now outdated, due to the complex implementation of the policies guiding procurement. The study also revealed that there are minimal contributions towards the socio-economic objectives within the commuter bus industry. This has led to uncoordinated relations between the government officials and the subsidised commuter bus operators. Furthermore, there are challenges hindering effective procurement in the commuter bus industry, such as under-funding, fronting activities, frequent reshuffling of transport personnel and inconstant allocation of funds. The study also noted differences in the application of procurement practices between the government officials and the subsidised commuter bus operators, in terms of the industry’s contribution towards socio-economic objectives, policies and regulations, relationship and the challenges faced within the industry. Efficient procurement practices can contribute significantly to the commuter bus industry, especially towards job creation and economic growth. The study concludes with a recommended framework for enhancing the procurement practices of the commuter bus services in Gauteng.