The Greatly Debated Companies Amendment Bill Signed Into Law
The Long Awaited Public Procurement Act 28 of 2024
August 8, 2024
Public Sector and Regulatory
On Tuesday 23 July 2024, the President, Mr Cyril Ramaphosa assented to the Public Procurement Bill (Hereinafter “the Procurement Act”).
The Procurement Act 28 of 2024 introduces major regulatory reforms to the public procurement landscape in South Africa. It aims create a single framework to regulate procurement; to promote the use of technology for efficiency and effectiveness; and enhance transparency and integrity to combat corruption.
Some of the key talking points of the Procurement Act are:
The Procurement Act 28 of 2024 introduces major regulatory reforms to the public procurement landscape in South Africa. It aims create a single framework to regulate procurement; to promote the use of technology for efficiency and effectiveness; and enhance transparency and integrity to combat corruption.
1. Public Procurement Office:
Section 4 of the Act establishes a Public Procurement Office (“PPO”) within the National Treasury to monitor and promote compliance with the Act. The PPO must inter alia, promote the use of technology and modernisation of public procurement systems and where there is a breach of the Act, intervene to address such a breach of the Act.
2. Preferential Procurement:
The Act repeals the Preferential Procurement Policy Framework Act 5 of 2000 in its entirety and regulates preferential procurement in Chapter 4. It requires procuring institutions to create and implement a policy of procurement providing for preference in the allocation of contracts and the protection of persons disadvantaged by unfair discrimination.
Procuring institutions are required to have set asides for categories of people listed in the Act such as black people; women; peoples with disabilities and small enterprises owned by black peoples; women or black women.
3. Information and Communication technology based procurement
The Act requires the PPO to develop a Information Communication Technology (“ICT”) based procurement system to enhance efficiency, effectiveness transparency, integrity and to combat corruption. The envisaged ICT procurement system must provide a single platform with access for the procuring institution officials, bidders, suppliers and members of the public. Furthermore, the system must have an electronic market place to enable efficient procurement of common goods and services and have a hosting option for procurement data to, inter alia, enable oversight of procurement transactions.
4. Dispute Resolution
Section 35(1) creates a reconsideration provisions in terms of which a bidder may, within 10 days, submit an application for reconsideration of a decision to award the tender to the procuring institution. A decision to award the tender may not be reviewed by a court or the Tribunal unless the bidder has made an application for reconsideration, unless there are exceptional circumstances warranting an exemption from complying with 35(1) above. The procuring institution must within 30 days, finalise the reconsideration application and give its outcome and the reasons for such an outcome.
A bidder may review the outcome of the reconsideration application with the Tribunal established in terms of section 36 of the Act.
For the duration of the reconsideration application or review application, the Act imposes “standstill” provisions, which debar the procuring institution from concluding a contract with the successful bidder within 10 days after the completion of a reconsideration or prior to the conclusion of a review process.
We, at MVR Attorneys are specialist in the field of public procurement and government contracts. We have a team of lawyers who are available to assist procuring institutions on matters relating to the Public Procurement Act.
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