President Signs Public Procurement Act into Law; Provisions Await Implementation

Regulations must be developed for different procurement categories, including infrastructure and capital assets, as well as goods and services related to these areas.

The President has signed the Public Procurement Act, 2024 (Act No. 28 of 2024) into law, but the provisions of the Act are not yet in force. The National Treasury announced on Tuesday that the Act will come into operation through a proclamation in the Gazette.

The Public Procurement Act was officially approved and published on July 23, 2024. The legislation aims to establish a comprehensive framework for regulating public procurement, including preferential procurement, across all state organs. The goal is to enhance efficiency, cost-effectiveness, and integrity in procurement processes.

The Act addresses past weaknesses in procurement practices that have facilitated corruption and state capture. It includes provisions for a phased implementation approach, allowing the President to set different operational dates for various categories of procuring institutions, such as national and provincial departments, public entities, municipalities, and municipal entities.

Section 69 of the Act provides for this phased approach and allows for the repeal or amendment of existing laws, such as the Preferential Policy Procurement Framework Act, 2000 (PPPFA), to be implemented on different dates. This will ensure a smooth transition to the new procurement framework.

Many provisions of the Act require supporting regulations before they can take effect. The process of creating these regulations involves consultations with affected Ministers, the South African Local Government Association (SALGA), and the public, along with Parliamentary scrutiny, as outlined in Section 64 of the Act.

Regulations must be developed for different procurement categories, including infrastructure and capital assets, as well as goods and services related to these areas. The effective dates for various provisions and regulations will be determined based on the readiness of procuring institutions to implement the new framework.

Until the relevant provisions of the Public Procurement Act and accompanying regulations are operational, the existing procurement framework under the Public Finance Management Act, 1999, the Municipal Finance Management Act, 2003, the PPPFA, and other applicable legislation will remain in effect.