Draft bill fails to deal with many core issues that bedevil process
Unless more accountability, transparency and fairness is brought into SA’s procurement policy, or it is scrapped in its current form, the delivery of the R500bn Covid-19 economic stimulus will be severely undermined.
The Preferential Procurement Policy Framework Act has the widest coverage regarding public procurement, allowing for preferential procurement for “persons, categories of persons, historically disadvantaged by unfair discrimination on the basis of race, gender or disability” and “implementing the programmes of the Reconstruction & Development Programme”.
The Municipal Finance Management Act regulates procurement at municipal level and gives municipalities wide scope to come up with their own procurement rules. The Treasury has also issued regulations for municipal procurement, called the municipal supply chain management regulations, but in terms of the act these are only guidelines and come into force only if the council of a municipality adopts them.
Parallel apartheid-era institutions and laws also still cause confusion. The State Tender Board Act, the law that governed the centralised State Tender Board that oversaw procurement during the apartheid era, is still law. It is not in use, but it remains as a parallel law. bidders who believe they have lost out unfairly have increasingly sought relief in the courts. As public procurement is deemed administrative action, the Promotion of Administrative Justice Act applies that allows any individual to approach the high court to review a procurement decision.
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