Leading up to the promulgation of the Public Procurement Bill, President Cyril Ramaphosa has clarified the intention of the Bill and the Preferential Procurement Regulations that were published last week.

He said government remains wholly committed to transformation and empowerment and that B-BBEE is here to stay, with no prospect of being reconsidered.

According to a Polity report, Ramaphosa cited the Constitution in his latest weekly newsletter, stating that – to promote the achievement of equality – legislative and other measures may be taken to advance people who had been disadvantaged by unfair discrimination – this being black people, women and persons with disabilities.

‘It also says the state must implement a preferential procurement policy that advances people who have been disadvantaged by unfair discrimination. It is in this context that the new Preferential Procurement Regulations need to be understood. Some people have mischaracterised the purpose and effect of the new regulations,’ the President explained.

He said some commentary has claimed that the current government is back-tracking on its commitment to B-BBEE; however, this is ‘far from the truth’.

The new regulations fulfil an order of the Constitutional Court last year declaring that the preferential procurement regulations of 2017 are illegal and requiring that the Finance Minister replace them within 12 months.

‘Some of the commentators on this matter neglect to mention that the crux of the judgment is the scope of ministerial powers to make preferential procurement regulations. These regulations now fully comply with section 217 of the Constitution in that they empower organs of state to develop and implement preferential procurement policies when contracting for goods and services,’ Ramaphosa explained.

Full Polity report

From the desk of the President