By Phenyo Selinda
The South African government has taken a significant step towards improving the integrity and efficiency of public procurement with the signing of the Public Procurement Act, 2024 (Act No. 28 of 2024) into law. While the legislation was approved by the President and published in the Government Gazette on 23 July 2024, its provisions have yet to come into force. According to the National Treasury, the President will bring the provisions into operation through a phased approach via a proclamation in the Gazette.
The Public Procurement Act aims to establish a unified framework to regulate public procurement, including preferential procurement, across all organs of state. This new framework is designed to enhance efficiency, cost-effectiveness, and integrity within the procurement process, thereby directing public funds where they are genuinely intended.
One of the key aspects of the Act is its focus on addressing long-standing weaknesses in the procurement of goods and services by state organs—flaws that have historically facilitated corruption, including the notorious State capture incidents. By centralising and standardising the procurement process, the Act seeks to eliminate these vulnerabilities.
Phased Implementation and Regulatory Framework
As per Section 69 of the Act, the President holds the authority to bring its provisions into operation on different dates, allowing for a phased implementation. This approach will cater to the varying readiness levels of different procuring institutions, such as national and provincial departments, public entities, and municipalities. The Act also provides for the possibility of repealing or amending existing laws in stages, ensuring a smooth transition to the new procurement framework.
For example, the repeal of the Preferential Policy Procurement Framework Act, 2000 (PPPFA), alongside the enactment of Chapter 4 of the Public Procurement Act and its associated regulations, is expected to take effect simultaneously. This coordinated approach is aimed at ensuring that all necessary legal frameworks are in place to support the new procurement processes.
Consultation and Regulation Development
Before the various provisions of the Public Procurement Act can be enforced, several accompanying regulations must be developed and enacted. This regulatory development process involves extensive consultation with affected Ministers, the South African Local Government Association (SALGA), the public, and Parliamentary scrutiny, as stipulated in Section 64 of the Act. The regulations will be tailored to different categories of procuring institutions and types of procurement, with a particular focus on infrastructure and capital assets.
National Treasury has emphasised that the current procurement frameworks established under the Public Finance Management Act, 1999, the Municipal Finance Management Act, 2003, the PPPFA, and other applicable legislation will remain in place until the relevant provisions of the Public Procurement Act and its accompanying regulations come into effect. This ensures continuity in procurement processes while the new system is being prepared for implementation.
Combatting Corruption and Enhancing Public Trust
The Public Procurement Act is a critical tool in the government’s ongoing efforts to combat corruption and enhance public trust in how state resources are allocated and utilised. By creating a more transparent and accountable procurement system, the Act aims to prevent the misuse of public funds and ensure that procurement decisions are made in the best interests of the country.
The National Treasury’s announcement underscores the importance of a well-regulated procurement system in promoting good governance and economic development. The phased implementation and thorough regulatory development process reflect the government’s commitment to ensuring that the new procurement framework is robust, fair, and effective.
As the country awaits the President’s proclamation to bring the Act into force, the focus will remain on ensuring that all stakeholders are adequately prepared for the transition. The successful implementation of the Public Procurement Act will mark a significant milestone in South Africa’s fight against corruption and its efforts to build a more equitable and prosperous society.
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