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President Cyril Ramaphosa Signs Public Procurement Bill into Law

by Selinda Phenyo
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President Cyril Ramaphosa Signs Public Procurement Bill into Law

By Phenyo Selinda

President Cyril Ramaphosa has officially signed into law the Public Procurement Bill, which establishes a comprehensive framework to regulate public procurement across all state organs. This includes preferential procurement, aimed at enhancing efficiency, cost-effectiveness, and integrity in the procurement processes.

A Commitment to Fair and Transparent Procurement

“The President has assented to the Public Procurement Bill which complies with the stipulation in Section 217 of the Constitution that [the] contracting of goods and services by organs of state in all spheres of government must occur in accordance with a system which is fair, equitable, transparent, competitive and cost-effective; and that national legislation must prescribe a framework within which a procurement policy must be implemented,” stated the Presidency.

Addressing Past Weaknesses

The Public Procurement Act addresses historical weaknesses in the procurement of goods and services by state organs, which have previously allowed for various levels of corruption, including state capture. The Act acknowledges the fragmented nature of past procurement legislation and aims to create a unified framework that fosters justified advancement of persons or categories of persons capable of providing goods or services.

Enhancing Efficiency and Integrity

The new law promotes the use of technology to enhance efficiency and effectiveness in public procurement. It aims to increase transparency and integrity, combat corruption, ensure efficient and economic use of public resources, and advance transformation and broadened economic participation.

The Act anticipates stimulating economic development through the procurement of locally produced goods and services and supports procurement practices that are developmental in nature.

Broad Applicability

Administered by the Minister of Finance, the Public Procurement Act applies to a wide range of entities, including government departments, constitutional institutions, municipalities, municipal entities, and public entities. A limited number of provisions also apply to Parliament and provincial legislatures.

The Act covers all procurement carried out by procurement institutions, including those funded by donors or grants. It governs anyone submitting a bid or awarded a bid, as well as any procurement conducted on behalf of a procuring institution.

Exclusions and Prohibitions

One of the notable provisions of the Act is the listing of individuals who are prohibited from submitting bids. This includes public office bearers, employees of Parliament or provincial legislatures, and officials or employees of public entities, constitutional institutions, municipalities, and municipal entities.

“The 27th of April 1994 was a victory for non-racialism, for non-sexism, for human dignity and progress. Not just in South Africa, but everywhere. It was a victory for reconciliation.” - President Cyril Ramaphosa #FreedomDay2024 #Freedom30
“The 27th of April 1994 was a victory for non-racialism, for non-sexism, for human dignity and progress. Not just in South Africa, but everywhere. It was a victory for reconciliation.” – President Cyril Ramaphosa #FreedomDay2024 #Freedom30

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