Public Procurement Act

Sakeliga considers the new Public Procurement Act to be unconstitutional. The Act, which has not yet been implemented, forces state organs to preferentially procure while the Constitution considers it discretionary. Instead of creating a framework, the Act prescribes policy content, including mandatory setting aside of contracts for specific categories of persons by race and gender, pre-qualification criteria, subcontracting and local content requirements. These provisions are economically harmful due to increased costs, ineffective services, reduced productivity and an emphasis on political commitments rather than community interests. The Minister acquires overly broad powers that prevent institutions from developing their own policies that reflect their unique needs and institutional memory. The Act will lead to an aggravated collapse of service delivery. Sakeliga is preparing to oppose the Act with litigation.