Ramaphosa tightens public procurement by signing three bills into law

President Cyril Ramaphosa announced the signing of three bills into law on Tuesday.

The first, the Public Procurement Act, is aimed at regulating the processes, including preferential procurement by all organs of state with necessary efficiency, cost-effectiveness and integrity.

The Presidency said the bill complies with the stipulation in the constitution that "contracting of goods and services by organs of state in all spheres of government must occur in accordance with a system which is fair, equitable, transparent, competitive and cost-effective".

It said national legislation must prescribe a framework within which a procurement policy must be implemented.

The bill is expected to address weaknesses in the procurement of goods and services by organs of state that have in the past enabled degrees of corruption, including state capture.

Previously, the legislation regulating procurement by organs of state was accused of being fragmented and constraining.

The act establishes a single framework that regulates public procurement, including preferential procurement, by all organs of state and promotes the use of technology for efficiency and effectiveness.

Presidency spokesperson Vincent Magwenya described the law as seeking to enhance transparency and integrity to combat corruption, ensure efficient, effective and economic use of public resources and advance transformation and broadened economic participation.

He said the bill will extend and apply to departments, constitutional institutions, municipalities, municipal entities and public entities.

Climate Change Act

The second piece is legislation, the Climate Change Act, sets out a national climate change response, including mitigation and adaptation actions, and which also constitutes South Africa’s fair contribution to the global climate change response.

As endorsed by the president, the bill will enable the alignment of policies that influence South Africa’s climate change response to ensure the country's transition to a low-carbon and climate-resilient economy and society is not constrained by policy contradictions.

The Presidency said the law also sets out to enhance South Africa’s ability and capacity over time to reduce greenhouse gas emissions and build climate resilience while reducing the risk of job losses and promoting opportunities for new job opportunities in the emerging green economy.

It is expected to strengthen coordination between national sector departments and provide policy setting and decision-making to meet the commitments in a nationally determined contribution under the Paris Agreement.

"As seen with the recent devastating floods in parts of the Western Cape and KwaZulu-Natal, climate change impacts are disproportionally affecting poor communities and vulnerable groups which could affect the country's ability to meet its development and economic growth goals," the Presidency said.

The law also stipulates the role provinces and municipalities will play in mitigation efforts.

National Small Enterprise Amendment Act 

The third law assented to by the president is the National Small Enterprise Amendment Act. It streamlines the support services the government provides to small and medium-sized businesses.

This forms part of broadening participation in the economy by a greater number of South Africans and will allow Ramaphosa to establish a new entity, the Small Enterprise Development Finance Agency, which will incorporate:

• the Small Enterprise Development Finance Agency (Sefa);
• the Small Enterprise Development Agency (Seda); and
• the Cooperative Banks Development Agency.

Seda and Sefa are located within the department of small business development.

The Presidency said the new small enterprise finance agency will function as a one-stop shop for aspiring entrepreneurs and promote the development of the co-operative banking institutions.

The act also establishes the office of the small enterprise ombud service.

The ombud service can recommend minister of small business development Stella Ndabeni-Abrahams declares certain practices be prohibited as unfair trading.

Under the new law, the minister is enabled to make regulations setting the criteria to determine the classification of micro, small and medium enterprises as well as any legislation affecting small enterprises.

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