Finance Minister Enoch Godongwana has officially acknowledged the Constitutional Court’s 2022 judgment regarding the Preferential Procurement Policy Framework Act (PPPFA), a move that paves the way for a more streamlined national procurement system. The ruling, which declared the 2017 Preferential Procurement Regulations invalid, highlighted the legal necessity for a unified framework to manage government spending.
In a February 2022 decision, the Constitutional Court found that the Minister of Finance had overstepped his regulatory powers under the PPPFA. The court suspended the declaration of invalidity for 12 months, providing Parliament with a window to rectify the legal defects and address the fragmentation of procurement legislation across the public sector.
Following the court’s direction, the government moved to consolidate disparate procurement rules into the Public Procurement Act. This legislative shift was formally concluded on 23 July 2024, when President Cyril Ramaphosa signed the new Act into law, aiming to replace outdated regulations with a single, coherent framework designed to improve transparency and constitutional compliance.
The judgment provides clarity on the constitutional requirements for procurement and underscores the importance of a single, coherent legislative framework.
The historical context of the 2022 ruling centres on the balance between ministerial authority and legislative mandate. The 2017 regulations had attempted to drive economic transformation through procurement, but the court determined that the existing Act did not grant the Minister the breadth of power exercised at the time. The new Public Procurement Act seeks to rectify this by codifying these processes within a robust legislative structure that aligns with national constitutional standards.
According to the official government records accessed by this publication, the new framework is expected to enhance efficiency in the delivery of public services. The transition to this single regulatory authority is aimed at reducing the administrative hurdles that have historically complicated tender processes across government departments.
While the legislative phase is now complete, the practical implementation of the Public Procurement Act remains an area of ongoing oversight. Further updates regarding the specific timelines for the enforcement of the new regulations are expected from the National Treasury as they begin the phased rollout of the framework.