Public procurement is the process by which government departments or agencies purchase goods, services, and works from private entities. This process involves several key steps, including identifying needs, specifying requirements, inviting and evaluating bids, awarding contracts, and managing the delivery of goods or services.

Under South Africa’s previous public procurement regime, the public procurement process was fragmented and regulated by multiple pieces of legislation and other rule-making instruments. Chief Justice Raymond Zondo recognized this opining “the sheer number of acts and regulations which addresses procurement issues makes it very difficult for conscientious officials to get a clear understanding of them”.

On 23 July 2024, President Cyril Ramaphosa, assented to and signed into law the Public Procurement Act 28 of 2024 (the “Public Procurement Act”). The key focus of the Public Procurement Act is that of transparency which is enshrined in section 217 of the Constitution of the Republic of South Africa, 1996 (“The Constitution”). The Constitution provides, for fair, equitable, and transparent procurement system. Effectively, the Public Procurement Act seeks to address weaknesses in the procurement process and to ensure that public funds are spent and used effectively.

The Public Procurement Act seeks 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 and enhance transparency and integrity, among others, to combat corruption, ensure efficient, effective and economic use of public resources and advance transformation and broadened economic participation. The act establishes a Public Procurement Office within the National Treasury which will standardise the procurement process and use technology to drive procurement. The act also introduces a Public Procurement Tribunal has been established to review decisions and awards made by procuring institutions and entities.

The Public Procurement Act is a victory for transparency and promises a new era of accountability and openness in public procurement.

Authored by Noushaad Omarjee and Bongi Maseko (Associate)