The Citizen (Gauteng)

Rules relaxed for 100 SOEs

PROCUREMEN­T: EXEMPTION GRANTED TO STOP DELAYS

- Roy Cokayne

Constituti­onal Court in February declared 2017 regulation­s unlawful.

More than 110 organs of state have been granted exemption by National Treasury from the provisions of the Preferenti­al Procuremen­t Policy Framework Act (PPPFA).

These exemptions were granted following the Constituti­onal Court’s decision in February that the 2017 Preferenti­al Procuremen­t Regulation­s (PPR) issued by the minister of finance were unlawful.

National Treasury highlighte­d the steps it has taken to ensure that public procuremen­t is not delayed and service delivery is uninterrup­ted.

It stressed: “National Treasury has never prevented, nor prohibited organs of state from procuring goods and services.”

Economist Dr Roelof Botha previously warned that if government entities waited before putting out a tender or spending money “they are postponing economic activity and ultimately that is going to impact GDP growth”.

The Constituti­onal Court’s declaratio­n was suspended for 12 months, but the majority judgment was silent about the date on which the suspension expires.

To address this uncertaint­y, the minister of finance lodged an urgent Constituti­onal Court applicatio­n on 4 March to seek confirmati­on and establish whether the 2017 regulation­s remain valid until 15 February 2023, unless repealed sooner, or are no longer valid from 16 February 2022, the date of the Constituti­onal Court judgment.

National Treasury said the registrar of the court had advised that the applicatio­n is receiving the court’s attention.

Following the declaratio­n of invalidity of the 2017 PPR, National Treasury advised organs of state that, while awaiting clarity from the Constituti­onal Court:

▶ Tenders advertised before 16 February this year be finalised in terms of the 2017 regulation­s.

▶ Tenders advertised on or after 16 February be held in abeyance.

▶ No new tenders must be advertised and made available on National Treasury’s website.

It stressed it was only advising organs of state – and not instructin­g or directing them – and its advice was to curtail the risk of awarding tenders based on regulation­s that may be invalid.

It said on Friday that it recognised the urgency of the requests for exemption in terms of Section 3 of the PPPFA and rapidly put internal processes in place to ensure that the requests were dealt with expeditiou­sly.

“Once the minister has made his decision on the exemption requests, the acting chief procuremen­t officer communicat­es the decision to the organ of state concerned. This generally takes 72 hours,” it said. “Organs of state that are granted exemptions may procure goods and services using their procuremen­t policy.”

National Treasury added that the exemption process will continue until new regulation­s are in place or the Constituti­onal Court has provided clarity on the matterst, and that it has never prevented or prohibited organs of state from procuring goods and services.

The new draft Preferenti­al Procuremen­t Regulation­s were published in the national and provincial gazettes for public comment on March 10, with a closing date of April 11.

National Treasury said it is considerin­g all the public comments received on the draft regulation­s and, after due process, including seeking clarity where required, will publish the new regulation­s in the Government Gazette and on its website.

National Treasury confirmed to Moneyweb on 26 April that 111 organs of state had to date been granted exemption from the provisions of the act as at 29 March.

It said it was unable to divulge the names of the organs of state “due to confidenti­ality reasons”.

 ?? Picture: Shuttersto­ck ?? BIG PLANS. Treasury aims to assist the likes of Sanral in ensuring that service delivery is not interrupte­d.
Picture: Shuttersto­ck BIG PLANS. Treasury aims to assist the likes of Sanral in ensuring that service delivery is not interrupte­d.

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