While the President has signed into law the Public Procurement Act, the provisions of the Act are not in force yet.
‘The President will bring the provisions of the Act into operation through a proclamation in the Gazette,’ National Treasury said on Tuesday.
The Public Procurement Act, 2024 (Act No. 28 of 2024) was approved by the President and published as an Act in the Government Gazette on 23 July 2024.
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The legislation aims to create a single framework that regulates public procurement, including preferential procurement, by all organs of state, with the necessary efficiency, cost-effectiveness and integrity.
As enacted by the President, the Public Procurement Act addresses 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.
‘Section 69 of the Act enables the President to bring the provisions into operation on different
dates (phased approach) and to determine different dates for different categories of procuring institutions such as national and provincial departments, national and provincial public entities and municipalities and municipal entities.
‘The Act also allows for the repeal or amendment of different provisions of a law to be brought into operation on different dates. For example, the repeal of the Preferential Policy Procurement Framework Act, 2000 (PPPFA), and Chapter 4 of the Act (including provisions of other Chapters necessary for its implementation) and required regulations should take effect on the same date,’ National Treasury said.
Many provisions of the Act require regulations before the accompanying provisions of the Act could be brought into operation.
The process of making regulations involves consultation with affected Ministers, the South African Local Government Association (SALGA), and the public and Parliamentary scrutiny as outlined in section 64 of the Act. Different regulations for differe
nt categories of procuring institutions and for different types of procurement are provided in section 64.
‘The making of regulations regarding procurement of infrastructure and capital assets, and goods and services related to infrastructure and capital assets, are a mandatory requirement.
‘The recommendations on the effective dates of various provisions of the Act and the accompanying regulations will consider the readiness of the affected procuring institutions to implement.
‘The current procurement framework provided for under the Public Finance Management Act, 1999, the Municipal Finance Management Act, 2003, the PPPFA and other applicable legislation, remain in place until the relevant provisions of the Public Procurement Act, 2024, and accompanying regulations take effect,’ National Treasury said.
Source: South African Government News Agency