Latest news with #PublicProcurementAct
The Star
18 hours ago
- Business
- The Star
Watchdogs call for Act to keep govt procurement in check
PETALING JAYA: A comprehensive Public Procurement Act with enforceable legal powers to address long-standing weaknesses in government procurement is urgently needed, say experts and watchdog groups. Transparency International Malaysia (TI-M) president Raymon Ram (pic) said the Act must include transparency standards, independent oversight, legal sanctions for non-compliance, whistleblower protections and clear procurement dispute mechanisms. 'Simply consolidating current guidelines is inadequate; we need a law with teeth,' he said in a statement yesterday, following the release of the Auditor-General's Report 2/2025. Raymon also called for swift enforcement by all relevant agencies, including the Malaysian Anti-Corruption Commission, police and others. 'All cases involving procurement fraud, abuse of power or negligence must be referred for investigation or prosecution. 'Any form of inaction sends the wrong signal to both the public and potential wrongdoers,' he said. TI-M also urged all implicated ministries, departments and agencies to publish clear corrective measures, including recovery of funds, disciplinary steps and procedural reforms, to restore public confidence and show institutional responsibility. Raymon also called for independent experts and third-party observers in all integrity pacts in high-risk procurements. 'The Auditor-General's Report must not be an annual ritual of regret,' he said, adding that 'it must serve as a catalyst for reform, one that rebuilds institutional integrity, ensures justice for wrongdoing and protects the interests of the rakyat.' On the Pre-Qualification (Pre-Q) system of procurement that was trialed and implemented by multiple ministries, Centre to Combat Corruption and Cronyism (C4) chief executive officer Pushpan Murugiah said C4 agreed with the findings of the Auditor-General's office, since the system was found to be inefficient and open to abuse, an open tender system should have been used instead to eliminate or at least reduce corruption risks. 'Based on the Auditor-General's Report in this instance, the goal of efficient procurements through the implementation of the Pre-Q system was hampered by the lack of a maximum period for second-stage invitation, causing them to be unnecessarily prolonged,' he said. The main issue that still needs to be addressed is that there is no legally binding baseline policy that sets the standard for all government procurements, he added. 'C4 Centre has long advocated for a Government Procurement Act that sets out minimum standards of adherence in terms of transparency, reporting and accountability at all stages of the procurement process, from advertising of tender until project implementation. 'We have seen that piecemeal reforms in specific areas of procurement does little to remedy the risks, and only shifts the flaws onto other aspects of the procurement process,' said Pushpan. Malaysia Corruption Watch (MCW) president Jais Abdul Karim said Parliament and the Public Accounts Committee (PAC) should also summon the relevant parties for open public hearings. 'We need to accelerate the implementation of the eSelfAudit system, as announced by the Auditor-General, to prevent arbitrary approvals,' he said. On the management of subsidised cooking oils, Federation of Malaysian Consumers Associations (Fomca) chief executive officer Saravanan Thambirajah proposed an IC-linked purchase system. This, he said, would be similar to the approach used in the Sumbangan Asas Rahmah (Sara) programme. 'By linking purchases to consumers' IC, the authorities will be able to prevent repeat purchases beyond the permitted limit, and ensure that subsidies reach genuine domestic consumers rather than being diverted to the commercial sector,' he noted. He said an improved digital tracking system was needed, allowing authorities to watch for abnormal purchase patterns or unusually high sales, in real time. Saravanan said the issue represented a misuse of taxpayer funds and directly affected low and middle-income households who were the intended beneficiaries of the subsidies. 'While the intention of subsidising cooking oil is to shield vulnerable groups from the rising cost of living, it does not serve the purpose if leakages occur. 'In fact, they worsen the burden on low-income households by creating artificial shortages and driving up prices,' he said, stressing the need to reassess the sustainability of blanket subsidies.
IOL News
3 days ago
- Politics
- IOL News
City of Cape Town ready to square off against National Government over Public Procurement Act
Mayor Geordin Hill-Lewis Image: Supplied The Constitutional Court has opened the ring for a sparring match between the City of Cape Town and National government, by granting the City direct access to challenge the controversial Public Procurement Act, a case with potentially far-reaching consequences for the autonomy of municipalities and the future of local service delivery across South Africa. The case, which now heads to the country's highest court, revolves around both procedural and substantive concerns: that the Act was passed unlawfully, and that its implementation would severely constrain municipalities' ability to respond quickly to critical infrastructure needs. Chief Justice Mandisa Maya issued directions on 14 July, giving national government until 8 August to file its answering affidavit. The City has until 22 August to respond. The Presidency has confirmed it will make its position clear in those legal filings. Presidential spokesperson Vincent Magwenya told Weekend Argus: 'Our responses will be contained in our papers, which will be made known against the court set deadline.' For the City of Cape Town, the case is not merely a legal formality. Mayor Geordin Hill-Lewis described the court's decision to grant direct access as a crucial development. 'We welcome the Concourt granting direct access to hear this vital matter. 'We believe the Act was passed unlawfully, with fatal shortcomings in public participation and parliament's procedures.' The City's application contends that the National Council of Provinces (NCOP) vote that passed the Bill was flawed because seven of nine provincial delegations did not have valid final mandates. This alone, the City argues, is grounds for the legislation to be invalidated. However, Mayor Hill-Lewis emphasised that beyond procedural defects, the impact of the law on everyday service delivery is at the heart of their opposition. 'Beyond these issues, the Act will slow down local service delivery and make it much harder for municipalities to procure quickly in response to local needs. "Local government must be able to act swiftly to resolve urgent water, sanitation, electrical, waste, and environmental issues. Instead, this bill will slow down municipalities via a massive new red tape burden and interference from other spheres of government. This is unconstitutional, and undermines local government's direct accountability to serving residents.' The Constitutional Court made a ruling this past week Image: File In a comprehensive set of written responses to Weekend Argus, the City expanded on specific operational concerns. These include restrictions on municipalities' ability to procure emergency services without central approval, and the creation of a single national Public Procurement Office (PPO), which will assume oversight of municipal procurement systems. 'Specialised services or goods might be needed for urgent repairs to water, sewer or electricity infrastructure that may pose serious environmental risk or danger to residents. In these cases for example, municipalities will no longer have the power to lawfully deviate from procurement regulations for urgent service delivery without centralised approval via the centralised national Public Procurement Office (PPO).' The City warned that if the PPO database fails or is delayed, procurement for urgent services at municipal level could grind to a halt across the country. Added to this, the legislation prevents municipalities from maintaining their own supplier databases or making payments outside the central system. These concerns are amplified by the cost and complexity of implementing the law. While the Act is not yet fully operational, the City says National Treasury is still in the process of establishing the necessary regulations and systems. 'The Act is not yet in full effect as the necessary regulations and systems are still being established by National Treasury.' Even so, the City is already anticipating the financial and bureaucratic burden that will follow if the legislation stands. 'Yes because there will likely be human resource costs and other operational expenses required to cope with the major new red tape and compliance burden.' The legislation introduces 36 new regulatory requirements still to be promulgated. Municipal officials warn these changes will create delays, legal uncertainty, and reduced flexibility to deal with time-sensitive contracts. One such example is the potential for long and complex appeals against tenders — which, under the Act, would block the finalisation of contracts until the appeals process concludes. The City says this will discourage public-private partnerships and hinder investment in infrastructure, particularly in fast-growing urban areas. Cape Town has not stood alone in its opposition. The City maintains that it has engaged every possible forum to raise its objections, including public participation processes, submissions to the South African Local Government Association (SALGA), and intergovernmental meetings. 'The City has opposed the legislation at every stage including via public participation and SALGA channels. The City is acting in the interests of all municipalities.' At the heart of the City's legal argument lies a constitutional principle: that local government is not merely a service provider for national mandates, but a constitutionally distinct and autonomous sphere with direct accountability to residents. 'As a starting point, local government has constitutional autonomy and direct obligations to residents which the bill unconstitutionally infringes, aside from any and all further negative impacts.' [email protected] Weekend Argus
IOL News
14-07-2025
- Business
- IOL News
How reimagining the Public Works portfolio can drive South Africa's economic growth
Cosatu President Zingiswa Losi. Image: Independent Newspapers Public Works can and must become an enabler of state renewal and inclusive economic growth. For far too long, the Department of Public Works and Infrastructure (DPWI), has been synonymous with state capture and corruption. Ministers have come and gone and the rot has continued. Yet this portfolio with decisive interventions, can help turn South Africa into a construction site, creating jobs and unlocking badly needed economic growth. This was a vision first outlined by President Nelson Mandela and one that must be pursued by government led by President Cyril Ramaphosa and the African National Congress. A reimagining of this portfolio is all the more pressing with the economy barely averaging 1% annual growth over the past 15 years, unemployment a ticking time bomb at 43.1% and the fiscus facing a long list of equally pressing needs. For this to happen, DPWI needs to be cleansed of the cancer of state capture. Politicians, business people and officials involved in corruption must be removed and made to face the law. To deal with corruption lifestyle audits by the South African Revenue Services and Special Investigations Unit must be deployed to such persons of influence. Transparent procurement processes for the leasing of properties are needed as per the now assented to Public Procurement Act. Its promulgation and Regulations need to be expedited. The government must ensure the long-promised asset registry of all state property is completed and made available to the public. A cleansed and renewed DPWI needs to reimagine its role as the nation's leading property owner, but one tasked by Parliament and the Constitution to driving the nation's transformation and inclusive economic growth. It needs to play its part in freeing state property for economic infrastructure investments, be it land to build roads to reduce traffic congestion or to overhaul aging water infrastructure, to rolling out electricity transmission lines (especially in the three Cape Provinces rich with renewable energy potential, to expanding port facilities and thus boosting our export industries (in particular mining, agriculture and manufacturing), to securing passenger and freight railway lines and thus making it faster and cheaper for commuters and goods to reach their destinations, or to availing land for schools, colleges and universities to enable more young people to acquire the education and skills needed to find work. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ DPWI needs to play its part in being the state's property agent. The state is naturally the largest employer in the economy and requires land and buildings to fulfill its responsibilities, yet the state is spending billions of Rands renting expensive properties across the country. This is despite countless state buildings and land standing empty, and in many cases, sites of criminal activities and illegal occupation. Often politicians and property owners have a vested interest in this as money is to be made off expensive leases with bribes to be collected. This tragedy has a human face. In the Western Cape in 2024 2 407 teachers were retrenched in 2024, yet the same provincial government is spending millions each month renting office space in Cape Town whilst provincial buildings are available! This crisis is replicated across the country. Billions can be saved and be better used to employ doctors, nurses, teachers and police officers. DPWI needs to play a progressive role availing property for housing, in particular for low income, single mothers, poorly paid public servants, for domestic workers to be close to their workplaces, in inner cities and to help deracialise still largely segregated communities. This can help boost the amount of public housing for the poor the state is able to provide. A modernised DPWI that knows what the state owns can be better placed to lease property it doesn't currently require for residential or commercial purposes. This can be done through the Public Investment Corporation, which has extensive experience in property management and rental income. This revenue can ease the burden on a badly overstretched fiscus and release funds for pressing needs including fixing leaking water pipes in townships, reducing Eskom's debt burden and providing capital for farm workers to become farmers. A DPWI in touch with what it owns, can support the Departments of Trade, Industry and Competition as well as Small Business Development, by releasing and letting land and properties for SMMEs, industrial and commercial development. Land near residential neighbourhoods, in particular rural towns, townships and informal areas can attract economic investments and jobs near where working-class communities live, inject new life and secondary economic activities there and saving workers money spent on transport. The state is estimated to own 30% of South Africa's land yet there is a pressing need for land to be released for farm workers and labour tenants to call their own, for residents of informal areas to build homes and to unlock the development of SMMEs in townships. In the midst of the fake news and deliberate distortions of what the Expropriation Act contains, one of the key motivations for nil compensation has been lost in the public discourse. The state is not a single homogenous organ. It's spread across hundreds of national and provincial departments, entities, municipalities and State-Owned enterprises. All too often these state institutions neglect and do not utilise their property until its release is requested by another department for housing or other needs. The affected state institution then agrees to sell it for market related compensation to the same government! It makes no sense why a financially cash-strapped state must compensate the same state for land needed for the public good! Yet this has happened in the past and hence the need for the Expropriation Act to fix this. A crisis provides an opportunity to fix what has been broken and neglected for far too long. A capacitated DPWI, can become a site of victory over state capture and corruption, an enabler of economic growth and decent jobs, a supporter of public housing and infrastructure, and a source of revenue for state needing funds to address our many dire socio-economic challenges. Cosatu President Zingiswa Losi *** The views expressed here do not necessarily represent those of Independent Media or IOL. BUSINESS REPORT
The Herald
11-06-2025
- Politics
- The Herald
Cape Town mayor takes Ramaphosa and government to ConCourt
City of Cape Town mayor Geordin Hill Lewis has approached the Constitutional Court challenging government and President Cyril Ramaphosa over the Public Procurement Act which he claims will slow down service delivery and undermine the constitutional autonomy of local government. Hill-Lewis said the challenge in the apex court points out problems which render parliament's adoption of the bill unlawful. The bill was enacted in July 2024 with the Presidency announcing it complies with the stipulation in the constitution that 'contracting of goods and services by organs of state in all spheres of government must occur in accordance with a system which is fair, equitable, transparent, competitive and cost-effective'. The Presidency at the time said national legislation must prescribe a framework within which a procurement policy must be implemented. The bill was intended to address weaknesses in the procurement of goods and services by organs of state that have in the past enabled corruption, including state capture. Previously, the legislation regulating procurement was said to be fragmented and constraining. Hill-Lewis pointed out that seven of nine provinces did not have lawful final mandates to vote on the bill in the National Council of Provinces (NCOP). He added there were inadequate public participation timeframes and notice periods by provinces and the NCOP. There was also incorrect information in reports considered by the NCOP and National Assembly and the Assembly failed to consult on changes to chapter 4, did not consider all public comments and failed to comply with the rules for introducing a bill. 'We believe this [act] should be invalidated due to fatal shortcomings in public participation and parliament's procedures. Beyond these issues, it is vital that any new consideration of the [act] takes into account the huge red tape burden it will place on local government and the unconstitutional interference it permits in municipalities. 'At a local level, we often have to procure fast to respond to urgent water, sanitation, electrical, waste and environmental issues. This [act] impedes the ability to respond swiftly to local needs by introducing more red tape to complicate procurements. This inefficiency will have a direct effect on service delivery to residents.'
TimesLIVE
10-06-2025
- Politics
- TimesLIVE
Cape Town mayor takes Ramaphosa and government to ConCourt
City of Cape Town mayor Geordin Hill Lewis has approached the Constitutional Court challenging government and President Cyril Ramaphosa over the Public Procurement Act which he claims will slow down service delivery and undermine the constitutional autonomy of local government. Hill-Lewis said the challenge in the apex court points out problems which render parliament's adoption of the bill unlawful. The bill was enacted in July 2024 with the Presidency announcing it complies with the stipulation in the constitution that 'contracting of goods and services by organs of state in all spheres of government must occur in accordance with a system which is fair, equitable, transparent, competitive and cost-effective'. The Presidency at the time said national legislation must prescribe a framework within which a procurement policy must be implemented. The bill was intended to address weaknesses in the procurement of goods and services by organs of state that have in the past enabled corruption, including state capture. Previously, the legislation regulating procurement was said to be fragmented and constraining. Hill-Lewis pointed out that seven of nine provinces did not have lawful final mandates to vote on the bill in the National Council of Provinces (NCOP). He added there were inadequate public participation timeframes and notice periods by provinces and the NCOP. There was also incorrect information in reports considered by the NCOP and National Assembly and the Assembly failed to consult on changes to chapter 4, did not consider all public comments and failed to comply with the rules for introducing a bill. 'We believe this [act] should be invalidated due to fatal shortcomings in public participation and parliament's procedures. Beyond these issues, it is vital that any new consideration of the [act] takes into account the huge red tape burden it will place on local government and the unconstitutional interference it permits in municipalities. 'At a local level, we often have to procure fast to respond to urgent water, sanitation, electrical, waste and environmental issues. This [act] impedes the ability to respond swiftly to local needs by introducing more red tape to complicate procurements. This inefficiency will have a direct effect on service delivery to residents.'
