{"id":1008,"date":"2024-07-23T11:19:11","date_gmt":"2024-07-23T11:19:11","guid":{"rendered":"https:\/\/itlawco.com\/?page_id=1008"},"modified":"2024-08-16T08:01:01","modified_gmt":"2024-08-16T08:01:01","slug":"public-procurement-act","status":"publish","type":"page","link":"https:\/\/itlawco.com\/fr\/focus-areas\/procurement-law\/south-africa\/public-procurement-act\/","title":{"rendered":"Public Procurement Act | South Africa\u2019s new public procurement law"},"content":{"rendered":"<div id=\"fws_6a5f447b539dd\"  data-column-margin=\"default\" data-midnight=\"dark\"  class=\"wpb_row vc_row-fluid vc_row\"  style=\"padding-top: 0px; padding-bottom: 0px; \"><div class=\"row-bg-wrap\" data-bg-animation=\"none\" data-bg-animation-delay=\"\" data-bg-overlay=\"false\"><div class=\"inner-wrap row-bg-layer\" ><div class=\"row-bg viewport-desktop\"  style=\"\"><\/div><\/div><\/div><div class=\"row_col_wrap_12 col span_12 dark left\">\n\t<div style=\"margin-top: 30px; \" class=\"vc_col-sm-12 wpb_column column_container vc_column_container col no-extra-padding inherit_tablet inherit_phone\"  data-padding-pos=\"all\" data-has-bg-color=\"false\" data-bg-color=\"\" data-bg-opacity=\"1\" data-animation=\"\" data-delay=\"0\" >\n\t\t<div class=\"vc_column-inner\" >\n\t\t\t<div class=\"wpb_wrapper\">\n\t\t\t\t\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<p><span style=\"color: #000000;\">President Ramaphosa recently signed the <a href=\"https:\/\/publicprocurementact.co.za\/\">Public Procurement Act 28 of 2024<\/a> into law. The Act establishes a comprehensive framework for the procurement of goods and services by all organs of the state in South Africa. This landmark legislation aims to combat corruption, enhance transparency, and promote economic development through preferential procurement practices.<\/span><\/p>\n<h2><span style=\"color: #000000;\">The significance of public procurement in South Africa<\/span><\/h2>\n<div class=\"group\/conversation-turn relative flex w-full min-w-0 flex-col agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-&#091;20px&#093; text-message flex w-full flex-col items-end gap-2 whitespace-pre-wrap break-words &#091;.text-message+&amp;&#093;:mt-5 overflow-x-auto\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"472fd4d3-2dce-4b9a-ace5-25a7e53f4b74\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-&#091;3px&#093;\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p><span style=\"color: #000000;\">Public procurement makes up a large part of government spending, totalling billions of rand each year, and greatly contributes to GDP.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2><span style=\"color: #000000;\">Who does the Act apply to?<\/span><\/h2>\n<ul>\n<li><span style=\"color: #000000;\"><strong>Government departments<\/strong>: As defined in section 1 of the Public Finance Management Act.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Constitutional institutions<\/strong>: Listed in Schedule 1 to the Public Finance Management Act.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Municipalities and municipal entities<\/strong><\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Public entities<\/strong>: Listed in Schedule 2 or 3 to the Public Finance Management Act.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Parliament and provincial legislatures<\/strong>: Specific sections such as Chapter 4, regulations made under section 63, including section 24(1)(d), are applicable.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>All procurement activities<\/strong>: Carried out by any person on behalf of a procuring institution, including procurement through donor or grant funding.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Bidders<\/strong>: Any person who submits a bid or has been awarded a bid.<\/span><\/li>\n<\/ul>\n<h2><span style=\"color: #000000;\">Key objectives of the Public Procurement Act<\/span><\/h2>\n<p><span style=\"color: #000000;\">The objectives of the Public Procurement Act, 2024, with due regard to sections 195, 216, and 217 of the Constitution, include:<\/span><\/p>\n<ol>\n<li><span style=\"color: #000000;\"><strong>Uniform standards<\/strong>: Introducing uniform treasury norms and standards for all procuring institutions to implement their procurement systems as envisaged in section 217(1), read with section 216(1), of the Constitution.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Preferential procurement<\/strong>: Determining a preferential procurement framework for all procuring institutions within which to implement their procurement policies as envisaged in section 217(2) and (3) of the Constitution.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Economic use of resources<\/strong>: Ensuring efficient, effective, and economic use of public resources through the assessment of costs, benefits, and risks.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Ethical conduct<\/strong>: Advancing ethical conduct and combating corruption through access to procurement information and other transparency measures, and introducing enforcement and appropriate sanctions for transgressors.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Transformation and industrialisation<\/strong>: Advancing transformation, beneficiation, and industrialisation.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Economic development<\/strong>: Stimulating economic development by supporting goods produced and services provided in the Republic, procurement that is developmental in nature, and investment.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Efficiency and technology<\/strong>: Improving efficiency and effectiveness in procurement by streamlining processes through the use of technology.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Dispute resolution<\/strong>: Providing for effective and expedited dispute resolution of procurement-related decisions.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Sustainability and innovation<\/strong>: Promoting innovation, sustainable development, and environmental rights as outlined in section 24 of the Constitution.<\/span><\/li>\n<\/ol>\n<h2><span style=\"color: #000000;\">Main provisions<\/span><\/h2>\n<ul>\n<li><span style=\"color: #000000;\"><strong>Scope<\/strong>: The Act applies to all government departments, constitutional institutions, municipalities, and public entities, creating a unified procurement system.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Preferential procurement<\/strong>: It sets out a framework for preferential procurement to promote local economic development and support historically disadvantaged individuals.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Public procurement office and tribunal<\/strong>: Establishes the Public Procurement Office within the National Treasury, with powers to issue binding instructions and conduct investigations. An independent Public Procurement Tribunal will review decisions and ensure compliance with the Act.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Use of technology<\/strong>: The Act mandates the development of an ICT-based procurement system to enhance efficiency, effectiveness, transparency, and integrity, and to combat corruption.<\/span><\/li>\n<\/ul>\n<h2><span style=\"color: #000000;\">Implementation and compliance<\/span><\/h2>\n<p><span style=\"color: #000000;\">The Act aligns with Section 217 of the Constitution, ensuring procurement systems are fair, equitable, transparent, competitive, and cost-effective. Administered by the Minister of Finance, the Act replaces previous interim measures and harmonises procurement regulations across all state organs .<\/span><\/p>\n<h2><span style=\"color: #000000;\">Impact on public procurement<\/span><\/h2>\n<ul>\n<li><span style=\"color: #000000;\"><strong>Efficiency<\/strong>: The new framework leverages technology to streamline procurement processes, making them more efficient and reducing administrative burdens.<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Economic participation<\/strong>: By broadening opportunities for local businesses, the Act aims to foster economic growth and create jobs, particularly benefiting small and medium-sized enterprises (SMEs).<\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Anti-corruption measures<\/strong>: The Act includes stringent anti-corruption provisions, including binding codes of conduct for procurement officials and improved processes for disbarring non-compliant suppliers.<\/span><\/li>\n<\/ul>\n<h2><span style=\"color: #000000;\">The public\u2019s reaction<\/span><\/h2>\n<p><span style=\"color: #000000;\">Various publications, including <a href=\"https:\/\/www.businesslive.co.za\/bd\/national\/2024-07-25-procurement-act-evokes-mixed-reactions-from-business\/\">Business Day<\/a>, report mixed reactions from the public:<\/span><\/p>\n<ul>\n<li>EWN: <a href=\"https:\/\/www.ewn.co.za\/2024\/08\/08\/hill-lewis-urges-ramaphosa-to-halt-public-procurement-act-says-it-will-hinder-service-delivery\">Hill-Lewis urges Ramaphosa to halt Public Procurement Act<\/a>, says it will hinder service delivery<\/li>\n<li>COSATU is <a href=\"https:\/\/mediadon.co.za\/2024\/08\/05\/cosatu-is-deeply-dismayed-by-ill-conceived-attempts-to-halt-the-public-procurement-act-by-the-western-cape-provincial-government\/\">deeply dismayed by ill-conceived attempts to halt the Public Procurement Act<\/a> by the Western Cape Provincial Government.<\/li>\n<li><a href=\"https:\/\/www.news24.com\/fin24\/economy\/western-cape-cape-town-launch-protest-against-new-procurement-law-20240807\">Western Cape, Cape Town launch protest against new procurement law.<\/a><\/li>\n<li><a href=\"https:\/\/www.businesslive.co.za\/bd\/national\/2024-07-29-public-procurement-act-unconstitutional-says-winde\/\">Alan Winde (Premier, Western Cape)<\/a>: \u201cWe firmly believe that the act in its current form does not pass constitutional muster as it usurps the autonomy of provinces and municipalities in adopting their own preferential procurement policies&#8230;\u201d<\/li>\n<li>Daily Maverick: <a href=\"https:\/\/www.dailymaverick.co.za\/opinionista\/2024-08-07-sas-new-widely-hailed-public-procurement-act-could-fuel-state-capture-2-0\/\">SA\u2019s new widely hailed Public Procurement Act could fuel State Capture 2.0<\/a><\/li>\n<li><span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"https:\/\/blackbusinesscouncil.africa\/\">Black Business Council<\/a>: \u201cIn our view, this is the most important legislation, secondary only to the constitution.\u201d \u201cThis legislation will ensure that the state is able to set aside procurement opportunities for blacks, women, youth and people with disabilities.\u201d<\/span><\/li>\n<li><span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"https:\/\/sakeliga.co.za\/en\/\">Business lobby group Sakeliga<\/a>: The Act is \u201ca recipe for accelerated state failure\u201d that was \u201cunconstitutional and harmful\u201d. It condemned the bill for requiring all state entities to procure goods and services \u201conly from an artificially small pool based on race, nationality,\u201d and other criteria, arguing this would increase prices and reduce service quality. \u201cThis act seeks to severely restrict state entities\u2019 procurement choices, increasing expenses and diminishing service quality while potentially facilitating corruption on an unprecedented scale,\u201d Sakeliga said in a statement.<\/span><\/li>\n<li><span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"https:\/\/proudlysa.co.za\/\">Proudly SA<\/a>, the country\u2019s buy-local campaign, praised the effective \u201creinstatement\u201d of local content requirements in the public sector, noting that this would benefit all industries that had gained from similar provisions in the now-repealed Preferential Procurement Policy Framework Act. \u201cIndustries and companies producing and supplying these designated items will be able to sustain existing jobs, with much-needed new jobs possibly emerging,\u201d CEO Eustace Mashimbye told Business Day. \u201cOur plea is for all government departments and entities to which these rules apply to fully comply with the provisions of the bill, to avoid the high levels of noncompliance witnessed with the previous preferential procurement regulations.\u201d<\/span><\/li>\n<li><span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"https:\/\/www.seifsa.co.za\/\">Steel and Engineering Industries Federation of Southern Africa (Seifsa)<\/a> COO Tafadzwa Chibanguza said the provision for designating items, particularly the explicit preferences for acquiring locally produced goods and local content, is \u201ccritical for driving industrialisation,\u201d though he also noted that a finalised public procurement instrument is still pending.<\/span><\/li>\n<\/ul>\n<\/div>\n\n\n\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<h2><span style=\"color: #000000;\">Want to know more?<\/span><\/h2>\n<\/div>\n\n\n\n\n\t<div class=\"wpb_video_widget wpb_content_element vc_clearfix   vc_video-aspect-ratio-169 vc_video-el-width-100 vc_video-align-left\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t\n\t\t\t<div class=\"wpb_video_wrapper\"><iframe loading=\"lazy\" title=\"Navigating South Africa\u2019s new Public Procurement Act 28 of 2024\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/Dyg3E7hPik4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n\t\t<\/div>\n\t<\/div>\n\n<div class=\"wpb_text_column wpb_content_element\" >\n\t<h2><span style=\"color: #000000;\">How ITLawCo can help<\/span><\/h2>\n<p><span style=\"color: #000000;\">At ITLawCo, we understand the complexities and challenges associated with public procurement. Our team of experts can provide comprehensive support to ensure compliance with the new Public Procurement Act. We offer tailored legal advice, policy development, and training services to help your organisation navigate the new procurement landscape. Whether you need assistance with drafting procurement policies, conducting compliance audits, or providing training on the new regulations, ITLawCo is here to help. <a style=\"color: #000000;\" href=\"https:\/\/itlawco.com\/fr\/contact-us\/\">Contact us today<\/a> to find out how we can support your procurement needs.<\/span><\/p>\n<h2><span style=\"color: #000000;\">Read the Act<\/span><\/h2>\n<p><a href=\"https:\/\/publicprocurementact.co.za\/\">Access the online version of the Act<\/a>.<\/p>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t<\/div>\n\t<\/div> \n<\/div><\/div>","protected":false},"excerpt":{"rendered":"President Ramaphosa recently signed the Public Procurement Act 28 of 2024 into law. The Act establishes a comprehensive framework for the procurement of goods and services by all organs of...","protected":false},"author":1,"featured_media":1009,"parent":1134,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"class_list":["post-1008","page","type-page","status-publish","has-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Public Procurement Act | South Africa\u2019s new public procurement law - ITLawCo<\/title>\n<meta name=\"description\" content=\"Discover how the new Public Procurement Act enhances transparency, reduces corruption and supports local businesses.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/itlawco.com\/fr\/focus-areas\/procurement-law\/south-africa\/public-procurement-act\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Public Procurement Act | South Africa\u2019s new public procurement law - 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