Importance Of Public Procurement In South Africa

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This chapter sets out to investigate the constitutional requirements for the public procurement system in South Africa. These constitutional requirements for the system are primarily contained within section 217 of the Constitution (the "Procurement clause"). By the public and administrative nature of public procurement activities, the constitutional requirements for the broader activities of public procurement in terms of the system extend to other provisions, amongst others, the rights to just administrative action, access to information, and equality, have direct relevance. The constitutional provisions setting out the values for public administration, the powers of central executive control and review are also relevant to the system for …show more content…

Procurement of goods and services by the state could only be performed in terms of this act and through the central State Tender Board. In 1994, the promulgation of the Constitution of the Republic of South Africa, Act 200 of 1993 (hereafter the "Interim Constitution") first saw recognition of public procurement at constitutional level in the Republic. Section 187 of the Interim Constitution required national and provincial legislation to regulate the procurement of goods and services in all spheres of government and required such legislation to appoint tender boards to oversee such procurement. Further provisions of section 187 set out the basic requirements for the procurement system: to be fair; public; competitive; non-interference in the envisaged tender boards; the recording of decisions; and the reasons for such decisions to be given to interested parties. The procurement provisions of the Interim Constitution, although elevating procurement to a constitutional level, envisaged a procurement system with strong similarities to the pre-existing system, one of centralised procurement authorities in the form of tender boards. The requirement for the system to be competitive appeared to be limited to only one such procurement method, that of tendering. Three years later, the Interim Constitution 's specific public procurement provisions of section 187 were significantly broadened to those adopted in section 217, titled "Procurement", of the final Constitution and the procedural focus of the procurement provisions of the Interim Constitution was replaced with principle-based requirements for decentralised systems of procurement. Among the explicit requirements under the provisions of the Constitution is that the procurement system

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