Minister of Finance Enoch Godongwana has noted and respects the Constitutional Court judgment declaring that the Public Procurement Act, 2024, was adopted in a manner inconsistent with the Constitution and is consequently invalid.
The judgment relates to matters brought by the Premier of the Western Cape Government and the City of Cape Town against the Speaker of the National Assembly, the Chairperson of the National Council of Provinces, the Minister of Finance and others.
Godongwana said public procurement remains a key enabler of economic growth and development. However, he emphasised that this cannot be realised in a weak public procurement ecosystem that is not governed by a legislative framework designed to achieve a procurement system that is fair, equitable, transparent, competitive and cost-effective.
Such a system should also provide for the protection or advancement of persons, or categories of persons, disadvantaged by unfair discrimination.
“Public procurement in its current state will not realise these constitutional principles as it is fraught with challenges that include corrupt activities, fraud, financial loss, poor planning, inferior deliverables, weak institutional capacity, irregular expenditure and failure to sufficiently stimulate local industries.
“This is evident from the various reports, media exposés and Commissions of Inquiry that have taken place or are underway,” the Minister said. -SAnews.gov.za
