PUBLIC PROCUREMENT ACT BY SHUMIRAI CHIMOMBE
P
resident Cyril Ramaphosa signed into law the Public Procurement Act 28 of 2024 on 23 July. The Act will see measures being put into place to eliminate corruption and increase transparency in the awarding of government contracts. The measures also aim to streamline the procurement process through technology, and ensure improved equity for local businesses and previously disadvantaged individuals and entities. The Act seeks to create a single framework that will regulate public procurement, including preferential procurement, by all organs of state with efficiency and integrity. In his weekly newsletter addressing the nation on 29 July, the President said that the newly signed Act is another important step in ensuring that public funds are put to use where intended. “As we intensify our collective efforts to build an inclusive economy that creates jobs, the Public Procurement Act allows us to make [the] best use of public funds to support transformation and local development. At the same time, by implementing measures to prevent the abuse of public procurement, the Act will help to ensure that public funds are put to the uses for which they are intended.”
New public procurement law set to enhance transparency and black empowerment 48 | Public Sector Leaders | August 2024
In a boost for local businesses, a major feature of the Act is that it mandates prioritizing contracts for black-owned businesses and local firms through set-asides for preferential procurement. “Public procurement is about getting the best value for the state. It is also an opportunity to promote transformation of the economy and society. The new law therefore provides for set-asides in the allocation of contracts to advance companies owned by people historically disadvantaged by unfair discrimination.”