Dodgy tenders will now be harder to pass through the system, after President Cyril Ramaphosa signed into law legislation that aims to eradicate corruption in the procurement space.
Ramaphosa yesterday assented to the Public Procurement Bill which will regulate how government obtains goods and services.
Presidency spokesperson Vincent Magwenya says the Act applies to all Departments, Municipalities and public entities.
”The Act creates a single framework that regulates public procurement, including preferential procurement, by all organs of state, with efficiency, cost-effectiveness and integrity.”
Magwenya says the Public Procurement Act will now address weaknesses in the procurement of goods and services by organs of state that have in the past enabled various degrees of corruption, including state capture.
There are also a limited number of clauses which apply to Parliament and provincial legislatures.
The Act applies to all procurement carried out by a procurement institution (including procurement through donor or grant funding), any person who submits a bid or has been awarded a bid; and all procurement carried out by any person on behalf of a procuring institution.
Among its wide-ranging provisions, the Act lists persons who may not submit bids, including:
- Public office bearers
- Employees of Parliament or provincial legislatures
- Officials or employees of, among others, public entities, constitutional institutions, municipalities and municipal entities.
The Supply Chain Council has welcomed the signing of the Bill into law and says it ushers in a new era for supply chain professionals.
The Executive Chairperson of the Council Kamogelo Mampane says this ”landmark legislation” is set to revolutionise procurement practices across the country, and presents a myriad of opportunities and benefits for supply chain professionals, businesses, and communities alike.
This includes enhancing efficiency and transparency, driving economic transformation and promoting sustainable development.
Mampane says a key highlight of the Procurement Bill is its strong support for local production and manufacturing.
”The law stipulates that government entities prioritise locally produced goods and services in their procurement decisions. This provision aims to boost local industries, create jobs, and stimulate economic growth within the country. Supply chain professionals will need to cultivate robust relationships with local suppliers, ensuring that the procurement of locally manufactured products meets quality and cost-efficiency standards.”