Public Procurement Bill 2023 Submission of Public Comment to the National Council of Provinces
Summary
The Public Affairs Research Institute (PARI) critiques the Public Procurement Bill 2023, asserting that it fails to create a coherent regulatory architecture and risks unconstitutionality by separating general procurement systems from preferential procurement policies. PARI argues that the Bill's new provisions on 'set-asides' and 'prequalification' are poorly defined and may disrupt state operations. The submission proposes returning Chapter 4 to NEDLAC for consultation and suggests several amendments to enhance the powers of the Public Procurement Office, improve the disclosure of beneficial ownership, and establish incentivised whistleblowing mechanisms.
Key insights
- The Bill creates a fragmented regulatory architecture by splitting the 'single framework' into two: an 's25 framework' for general procurement systems and an 's16 framework' for preferential procurement policies. This separation replicates existing incoherence between preferential and wider procurement law.
- PARI argues that the Bill may be unconstitutional because Chapter 4 prioritizes 'set-asides' and 'prequalifications'—which restrict competition—without providing a clear mechanism to balance these against the constitutional principles of fairness, equitability, transparency, competitiveness, and cost-effectiveness. Notably, price is not mentioned as an adjudication criterion in this section.
- The Bill's use of the terms 'set-aside' and 'prequalification' departs from standard procurement terminology and lacks definitions, which may lead to operational confusion and legal uncertainty. Specifically, the requirement for 'market research and industry analysis' to justify prequalifications may be beyond the capacity of many procuring institutions, risking the disqualification of capable bidders.
- The proposed provisions in sections 17, 18, and 19 may marginalize the B-BBEE Act by omitting goals such as management control, employment equity, and skills development, potentially harming broad-based beneficiaries.
- PARI proposes that the Public Procurement Office (PPO) and provincial treasuries be granted the power to review procurement policies and systems that do not comply with the Act and advise on necessary amendments.
- To combat corruption, PARI suggests the Bill should facilitate the publication of names of 'automatically excluded persons', their family, and related persons who contract with the state, aligning with the Financial Intelligence Centre Act (FICA).
- The submission argues for the inclusion of incentivised whistleblowing specifically within the Public Procurement Bill, rather than general legislation, because procurement involves large sums of money and often involves non-employee whistleblowers.
Cite the original document
- APA
- Public Affairs Research Institute (2024). Public Procurement Bill 2023 Submission of Public Comment to the National Council of Provinces. https://pari.org.za/wp-content/uploads/2024/04/PARI_SubmissionNCOP_PublicProcurementBill_22Feb24_v1.pdf
- Chicago
- Public Affairs Research Institute. Public Procurement Bill 2023 Submission of Public Comment to the National Council of Provinces. 2024. https://pari.org.za/wp-content/uploads/2024/04/PARI_SubmissionNCOP_PublicProcurementBill_22Feb24_v1.pdf.
- Wikipedia
- {{cite press release |author=Public Affairs Research Institute |title=Public Procurement Bill 2023 Submission of Public Comment to the National Council of Provinces |date=22 February 2024 |url=https://pari.org.za/wp-content/uploads/2024/04/PARI_SubmissionNCOP_PublicProcurementBill_22Feb24_v1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @misc{publicaffairsresearchinstitute2024public, author = {{Public Affairs Research Institute}}, title = {{Public Procurement Bill 2023 Submission of Public Comment to the National Council of Provinces}}, publisher = {Public Affairs Research Institute}, year = {2024}, month = feb, url = {https://pari.org.za/wp-content/uploads/2024/04/PARI_SubmissionNCOP_PublicProcurementBill_22Feb24_v1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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