Home South African Single statute on procurement on the cards, says Finance minister

Single statute on procurement on the cards, says Finance minister


Finance Minister Enoch Godongwana says a bill aimed at bringing a single statute to deal with procurement to ensure coherence in tendering in the government was on the cards.

Minister Enoch Godongwana. Picture: Dumisani Sibeko

FINANCE Minister Enoch Godongwana says a bill aimed to bring a single statute to deal with procurement to ensure coherence in tendering in the government is on the cards.

Godongwana revealed this when he was answering oral questions in the National Assembly on Wednesday.

NFP MP Munzoor Shaik Emam asked what measures he intended to put in place as a matter of urgency to ensure that all spheres of the government receive value for money, pay market-related prices and close all gaps in terms of corruption.

In his response, Godongwana said that as part of a commitment to ensure value for money, the National Treasury was intervening decisively to improve procurement systems.

“We strengthen the capacity of supply chain personnel. We are working together with the law enforcement agencies to bring to book all those involved in acts of corruption,” he said.

Godongwana also said his department would be bringing before Parliament a single statute that deals with procurement to ensure coherence in procurement procedures.

“We will bring a public procurement bill. The bill is to deal with appointment of a procurement regulator to ensure and oversee the entire procurement process in the government,” he said.

The minister stated that the bill would provide for consolidation of all information across government institutions to ensure there was transparency in procurement data.

He told MPs that they intended to intensify collaboration with other law enforcement agencies such as the Hawks, the National Prosecuting Authority and the public protector.

But, Emam advised Godongwana that it would not be as easy as he explained.

He said politics was a lucrative business and political parties have control where they govern and decide who the CFO should be.

Emam asked what he would put in place to ensure that there was a standard of pricing to ensure that government paid market-related prices for goods and services.

The minister acknowledged that the process to undermine procurement systems was embedded at all levels in the government.

“I don’t want to mislead and conclude that it will be an easy task but it will require an effort and collaboration by all of us.”

Godongwana also said they were looking at different dispensations in how to manage the procurement for SMMEs so that it should not be confused with broader procurement in the state where corruption took place.

But EFF MP Floyd Shivambu said the major focus and debate on procurement should be the transformative role in terms of how localisation and industrialisation were driven.

He asked whether it was not time to amend the Public Finance Management Act and Municipal Finance Management Act and emphasised the centrality of localisation where 30% of SMME should benefit in government tenders and 80% of goods be locally produced.

Godongwana said his mandate from the ANC was to make reforms to advance the interests of transformation.

He also said as part of tabling the adjustment budget in November they would be tabling proposals on SMMES to advance localisation.

Political Bureau

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