The Bill outlines the establishment of a comprehensive procurement system, emphasising the use of technology to provide access to officials, bidders, suppliers and the public for all procurement-related services.

The Bill aims to recognise the need for promoting economic transformation within the ownership and management control of Black people and advancing preferential procurement from enterprises that are owned and managed by Black people in terms of the codes of good practice on Black economic empowerment issued in terms of the Broad-Based Black Economic Empowerment Act 53 of 2003, in order to enable meaningful participation of Black people in the economy.

At a glance, the Bill outlines provisions for access to procurement processes and information, as well as measures for preferential procurement.

It specifies that the Minister of Finance (Minister) is required to prescribe measures for the public, civil society, and the media to access, scrutinise and monitor procurement processes. This indicates a commitment to transparency and public oversight of procurement activities.

Regarding preferential procurement, Chapter 4 of the Bill focuses on the preferential framework for procurement policies. It includes provisions for set-asides for preferential procurement, pre-qualification criteria for preferential procurement, sub-contracting as a condition of a bid, and the designation of sectors for local production and content. These measures aim to promote the advancement of sustainable development, job creation, and the development of small enterprises within specific geographical areas.

In summary, there is an emphasis on the importance of transparency and public access to procurement processes and information, while also outlining measures for preferential procurement to promote economic development and job creation.

Consequences for financial misconduct

The Bill includes new provisions related to financial misconduct. It outlines various offenses and penalties related to financial misconduct in the context of procurement processes. It specifies that individuals who knowingly give false or misleading information, interfere with or exert undue influence on procurement processes, or cause loss of public assets or funds due to wilful acts or gross negligence, may be liable to fines, imprisonment, or both, upon conviction. Moreover, the document mandates the investigation of allegations against officials or role players of corruption, improper conduct, or failure to comply with the procurement system, with requirements to report to relevant authorities and take necessary steps against the individuals involved.

The Bill further includes provisions for debarment of bidders or suppliers who engage in misconduct, such as providing false information, engaging in corrupt activities, or failing to perform contractual obligations. It also outlines the process for issuing debarment orders and the considerations involved in such decisions. An affected person will now have 10 days to provide reasons why a debarment order should not be issued.

The document incorporates measures to address financial misconduct within the procurement framework, aiming to ensure integrity, transparency and accountability in public procurement processes. It establishes clear guidelines for investigating and addressing financial misconduct, as well as imposing penalties for offenses related to procurement integrity and financial probity.

The Public Procurement Act, in contrast to the Public Finance Management Act 1 of 1999 (PFMA), which merely mentions that a procurement system must meet particular criteria in a single line, offers detailed instructions on what the Minister must specify. Under section 31(2)(a), it covers details such as cancelled bids, reasons for the cancellation communicated to unsuccessful bidders, and the disclosure of bids awarded to a politician’s family member.

The Bill does not replace the PFMA or any other act in their entirety. Instead, it amends and repeals specific sections of various acts to align them with the new procurement regulations introduced in the Public Procurement Act. The amendments are intended to ensure that the procurement processes across different sectors and entities are consistent with the principles and requirements of the Public Procurement Act. This includes updates to the definitions, objects, application, and administration of the Procurement Act, as well as changes to the way procurement is managed and reported within the framework of the PFMA and other relevant legislation.

In conclusion, the Bill represents a significant step towards enhancing transparency, efficiency and integrity in the country’s procurement processes. With provisions for access to information, measures for preferential procurement, and the use of technology to combat corruption, the Bill aims to promote economic development, job creation and sustainable practices.