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applicable legislation

The primary pieces of national legislation that govern procurement in South Africa are as listed below. (See supporting document cidb Best Practice Guideline A#2, Applying the prescripts of the cibd Act in the Public Sector , for more detailed particulars).

Act

Applicability

What it does in respect of Procurement / Supply Chain Management

Constitution of the Republic of South Africa, 1996
(Act No 108 of 1996)

All organs of state

Provides procurement objectives and establishes government’s policy for preferencing

Public Finance Management Act, 1999
(Act 1 of 1999)

All organs of state, except in the local sphere of government

Establishes broad framework within which accounting officers / authorities must establish their procurement and provisioning system (supply chain management)

Preferential Procurement Policy Framework Act, 2000
(Act No 5 of 2000)

All organs of state (state owned enterprises) at discretion of Minister)

Establishes the manner in which preferential procurement policies are to be implemented

Local Government: Municipal Finance Management Act, 2003
(Act No 56 of 2003)

Municipalities and municipal entities

Establishes a detailed regulatory framework for supply chain management.

Local Government Municipal Systems Act, 2000
(Act No 32 of 2000); and
Broad-Based Black Economic Empowerment Act, 2003
(Act No. 53 of 2003)

Local sphere of government

Establishes a framework for the establishment of service delivery agreements involving competitive bidding processes

Construction Industry Development Board Act, 2000
(Act 38 of 2000)

All organs of state involved in procurement relating to the construction industry.

Establishes a means by which the Board can promote and implement policies, programmes and projects aimed at procurement reform, standardisation and uniformity in procurement documentation, practices and procedures within the framework of the procurement policy of government.
Establishes a national register of contractors (and if required, consultants and suppliers) to manage public sector procurement risk

Broad-Based Black Economic Empowerment Act, 2003
(Act No. 53 of 2003).

Procurement provisions apply to all organs of state.

Establishes a code of good practice to inform the:

  • development of qualification criteria for the issuing of licenses or concessions, the sale of state owned enterprises and for entering into partnerships with the private sector; and
  • development and implementation of a preferential procurement policy.
 
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