PUBLIC PROCUREMENT ACT NOT YET IN FORCE, TREASURY CONFIRMS

PUBLIC PROCUREMENT ACT NOT YET IN FORCE, TREASURY CONFIRMS

• 14 August 2024
• National Treasury
• SA Legal Academy

National Treasury has issued a media statement confirming that the Public Procurement Act is not yet in effect and that – pending its phased commencement – the ‘current procurement framework’ will remain in place. In that regard, the statement refers to the Public Finance Management Act, 1999, the Municipal Finance Management Act, 2003, the Preferential Procurement Policy Framework Act, 2000, and ‘other applicable legislation’.

The statement also draws attention to the new Act’s section 69, which enables the President to determine and proclaim different dates for operationalising the Act’s other provisions and applying them to ‘different categories of procuring institutions such as national and provincial departments, national and provincial public entities and municipalities and municipal entities’. This is noting the importance of ensuring that the affected procuring institutions and entities are ready to implement relevant sections of the new legislation before operationalising them.

Against that backdrop, pre-commencement regulations will need to be drafted, released for public comment and scrutinised by Parliament before being gazetted for implementation in anticipation of giving practical effect to each of the Act’s provisions. In that context, the statement refers to the Act’s section 64, which requires ‘different regulations for different categories of procuring institutions and for different types of procurement’. It also draws attention to the ‘mandatory requirement’ of regulations on infrastructure and capital asset procurement – as well as any goods and services related to them.

• media statement
• Act

Published by SA Legal Academy Policy Watch

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