STATE PROCUREMENT
XOLISA PHILLIP: Heavily regulated on paper yet toothless and weak in practice
It has become apparent that the legal framework governing procurement lacks the appropriate teeth
The government spends about R600bn procuring goods and services every year. Little wonder that this space attracts the best and the worst of SA’s business community. Procurement is a highly contested terrain, which is heavily regulated by a number of laws and regulations, including the Public Finance Management Act and the Municipal Finance Management Act. These two acts are supported by other laws and regulations to help ensure that procurement is a fair and transparent process. However, intention and reality are often diametrically opposed in SA — as has been evidenced by the massive data leak, blowing the lid off the potential procurement transgressions at state-owned entities. On paper, SA’s procurement process seems to be one of the cleanest in terms of transparency, governance and equity, but this is not the case in practice. Here’s why. The legal framework governing the process is fragmented. At last count, there were 19 pieces of legislation, all dealing with procurement iss...
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