THE IMPACT THAT SUPPLY CHAIN MANAGEMENT HAS ON FRAUDULENT ACTIVITIES IN THE PUBLIC SECTOR

Abstract

The paper attempts to examine some issues within the supply chain management of the government of South Africa, in respect of procurement of services and goods intended for public use and to enhance service delivery. Supply chain Management (SCM) is the engagement and enactment of a network of interconnected businesses involved in the provision of products and service packages required by the end customers in a supply chain. A fraudulent activity is deliberately deceitful, dishonest and deviant behaviour that compromises service delivery and the image of government in the eyes of the public. This paper looks at certain salient features of SCM and outlines three specific cases that indicate the seriousness of SCM violation by government departments in South Africa. The paper does not pretend to capture all of the issues that permeate Supply Chain Management / procurement, but attempts to show the cardinal importance of Supply Chain Management to the development of the country as a whole and the consequences that result from the violation of Supply Chain Management and procurement processes.