Monday, 15 November 2021

New Procurement Bill to be passed in 2022

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New Procurement Bill to be passed in 2022

Treasury has indicated that the Public Procurement Bill will be submitted to Parliament early next year, with the Minister of Finance, Enoch Godongwana, announcing last week, that it is in its final stages, to be tabled before Parliament in the 2022/23 financial year. 

The Draft Bill was recently further debated by key stakeholders including Nedlac and the target date for submission to Parliament is April 2022. 

The Bill will replace the current Preferential Procurement Policy Framework Act of 2000 (PPPFA) and amend some other related legislation, once adopted by Parliament. 

Under the PPPFA, the Minister is empowered to make regulations and the Draft Bill proposes that he creates preferences for people who were previously marginalized in public sector procurement. 

In addition, the Minister may also create a framework for a preference point system with thresholds as well as measures to promote certain categories of people or business sectors in government tenders. 

The contentious issue of set-asides, is included in the Draft Bill and it aims to create a bias for-

(i) a category or categories of persons or businesses or a sector;

(ii) goods that are manufactured in the Republic;

(iii) local technology and its commercialisation;

(iv) services that are provided by a citizen or citizens of the Republic;

(v) the creation of jobs or intensification of labour absorption;

(vi) enterprises based in townships, rural or underdeveloped areas;

(vii) enterprises based in a particular province or municipality for goods, services or infrastructure based in that province or municipality; etc. 

The Bill also aims, to create measures regarding the participation of manufacturers in a tender, as well as, promoting SMMEs, businesses owned by women, youth and people with disabilities and industrial development, respectively. 

According to Gerrit Davids, Lead Advisor at TaranisCo Advisory, tendering agency, “It is essential for those bidding for public sector contracts, to follow the parliamentary process around the Bill, especially where it may provide for a transition period to prepare for compliance by both organs of state and bidders, alike. It is advised that bidders become proactive in their approach towards the elements listed above since these aspects will be key measures, which will determine in future, as to who will be allowed to participate in a government tender.” 

To read a synopsis of the Draft Bill, visit www.taranis.co.za and you will find it at the bottom of the home page. 

Contact: Gerrit Davids. Lead Advisor | TaranisCo Advisory CC Mobile. +27 (0) 82 496 1657 E-mail:  This email address is being protected from spambots. You need JavaScript enabled to view it.