In a significant move towards enhancing efficiency, transparency, and accountability in public procurement processes, the gazetted Public Procurement Act of 2024 (Act) aims to revolutionise the way government entities engage in procurement activities. Keba Matlhako, Transformation Specialist at The BEE Chamber, has praised the new Act for its comprehensive approach to addressing critical issues and promoting good governance within the public procurement sphere.
The objectives of the Act, as outlined with due regard to sections 24, 195, 216, and 217 of the Constitution, include regulating public procurement, establishing a framework for preferential procurement, and addressing matters connected therewith. Notably, the Act introduces the Public Procurement Office under the National Treasury, tasked with ensuring efficiency, compliance, integrity, transparency, and standardisation in procurement processes.
Expressing enthusiasm for the proposed legislation, Matlhako highlights three key aspects of the Act that stand out as particularly promising:
Consolidation of regulations: “The Act consolidates various Acts and Regulations i.e. State Tender Board, National Suppliers Procurement Act and Preferential Procurement Policy Framework Act into a single, comprehensive framework, eliminating ambiguity and streamlining procurement policies. By aligning with constitutional principles of transparency and accountability, the Act provides a clear roadmap for procurement practices, enhancing control and oversight,” explains Matlhako.
Enables Government to establish thresholds: The Act introduces the ability to specify thresholds, set asides and pre-qualifications and subcontracting for different groups previously excluded from procurement opportunities with a specific focus on Black People. “This targeted approach ensures fairness and inclusivity, setting clear parameters for participation and empowering a broader range of stakeholders to engage in procurement processes,” says Matlhako.
Combating corruption: Through robust measures aimed at preventing external influences on government procurement, the Act introduces stringent safeguards to mitigate corruption risks. Provisions such as restrictions on government and State-Owned Enterprise (SOE) officials and employees from doing business with the state and disclosure where their family’s members and related people are bidding on tenders, coupled with a robust reporting and accountability framework, underscore the Act’s commitment to transparency and ethical conduct. The Act further introduces tribunal and processes to report, investigate and charge those that contravenes the act and its objectives.
Matlhako further commends the holistic and forward-thinking nature of the Act. “This Act has the potential to enhance the efficiency, credibility, and integrity of public procurement practices. By addressing critical issues with a focus on effectiveness and sustainability. It also signals a significant step towards modernising the public procurement system and fostering a culture of accountability within government procurement processes.”
This legislation marks a pivotal moment in the evolution of Broad-Based Black Economic Empowerment (B-BBEE) policies and practices in the country, with far-reaching implications for businesses, government entities, and the broader economic landscape.
“For companies operating in South Africa, doing business with the state and SOEs, compliance with B-BBEE requirements was put on a guillotine edge through the Preferential Procurement Regulations 2022 making B-BBEE a mere option as it was excluded from the 90/10 and 80/20 preference point system used for tender adjudication scoring and replaced by Specific Goals. The Act will introduce a comprehensive framework that includes both B-BBEE credentials and Specific Goals in procurement bids, creating a clear path for inclusive economic growth driven by government procurement..”
Government aims to leverage procurement spending as a catalyst for sustainable economic development and social progress.
The BEE Chamber stands ready to support businesses, government entities, and stakeholders in navigating the complexities of the Act and maximising the opportunities to advance diversity, equity and inclusion. Through its comprehensive suite of advisory services, training programmes and initiatives, The BEE Chamber remains committed to promoting excellence in B-BBEE compliance and driving transformative change in South Africa’s business landscape.
For more information on The BEE Chamber and the services it provides, please visit The BEE Chamber website, or contact the team via members@bee.co.za or 011 726-3052.