President Cyril Ramaphosa says the newly signed Public Procurement Act is another important step in ensuring that public funds are put to use where intended.
The President was addressing the nation through his weekly newsletter.
Amongst others, the Act is aimed at creating a framework that will regulate public procurement, including preferential procurement by all organs of state.
“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,” he said on Monday.
READ | President Ramaphosa signs Public Procurement Bill into law
The President explained that the Act is also part of the implementation of the State Capture report recommendations on how to prevent corruption in government procurement.
He added that the new law “eliminates the problem identified by Chief Justice [Raymond] Zondo of fragmentation in procurement laws by creating a cohesive regulatory framework”.
“Among other things, the law establishes a Public Procurement Office in the National Treasury, which must put in place measures to ensure the integrity of the procurement process. All the members of this office must perform their functions impartially and without fear, favour or prejudice.
“The Public Procurement Office must promote standardisation in procurement and modernise the system through technology and innovation. The law focuses on the people who are involved in procurement, requiring them to comply with a code of conduct and receive professional development and training,” he said.
Protecting public servants
President Ramaphosa highlighted that the new law also goes further to also protect public servants who are working in the procurement space.
“No government official may be directed, either verbally or in writing, to violate the required procurement processes. And no official can be victimised or suffer ‘occupational detriment’ for reporting any unlawful instruction.
“This is an important provision because many of the abuses that took place during the State Capture era involved political office bearers, business people and others putting pressure on managers to flout procurement regulations,” President Ramaphosa explained.
Additionally, the Public Procurement Act forbids people from trying to interfere with or influencing procurement and also prohibits tampering with tender bids.
“Suppliers who are found to abuse the procurement system or otherwise commit fraud and corruption are prevented through a ‘debarment order’ from participating in any procurement processes for a specified period.
“Certain categories of people are automatically excluded from submitting bids to the State.
“These include public office bearers, public servants in any sphere of government, officials in Parliament and provincial legislatures, special advisers and employees of public entities. In other words, people who work for the State may not do business with the state,” the President said.
Transparency
The President explained that the Act also provides for increased transparency in the awarding of government tenders.
“It provides for the use of technology to disclose procurement information, including awards of bids, the process followed and suppliers awarded. This follows our decision in 2020 to make information on all COVID-19 related contracts available online. No longer will tenders be awarded in dark corners far from public scrutiny.
“The approach in the Act is in line with the Constitutional requirement that public procurement must be done in accordance with a system which is fair, equitable, transparent, competitive and cost-effective.
“The Constitution also says that this should not prevent procurement policies that provide for the protection or advancement of people disadvantaged by unfair discrimination,” he said.
The President said the signing of the Act is a sign that government is committed to rectifying the gaps highlighted by the State Capture report.
“The report of the State Capture Commission shone a bright light on the weaknesses in our public procurement system. We are now fixing the problems the Commission identified and are making public procurement a more effective instrument for social and economic change,” the President concluded. – SAnews.gov.za
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