Cape town: Minister of Finance Enoch Godongwana has noted and respects the Constitutional Court judgment declaring that the Public Procurement Act, 2024, was adopted in a manner inconsistent with the Constitution and is consequently invalid.
According to South African Government News Agency, the judgment relates to matters brought by the Premier of the Western Cape Government and the City of Cape Town against the Speaker of the National Assembly, the Chairperson of the National Council of Provinces, the Minister of Finance, and others.
Godongwana stated that public procurement is a key enabler of economic growth and development. However, he stressed that this cannot be achieved in a weak public procurement ecosystem that lacks a legislative framework aimed at establishing a procurement system that is fair, equitable, transparent, competitive, and cost-effective.
Such a system should also ensure the protection or advancement of persons, or categories of persons, disadvantaged by unfair discrimination.
He further noted that public procurement in its current state will not realize these constitutional principles, as it faces challenges including corrupt activities, fraud, financial loss, poor planning, inferior deliverables, weak institutional capacity, irregular expenditure, and inadequate stimulation of local industries.
Godongwana highlighted that this situation is evident from various reports, media expos©s, and Commissions of Inquiry that have taken place or are underway.