Ramaphosa 'fixing' problems identified by state capture commission

President Cyril Ramaphosa says his government is “fixing” problems identified by the state capture commission and making public procurement a more effective instrument for social and economic change. 

Ramaphosa recently signed the Public Procurement Act that will eliminate procurement problems identified by chief justice Raymond Zondo in the report of the commission of inquiry into state capture. 

In his weekly newsletter, he said the act is part of the extensive work the government is doing to prevent corruption and consign state capture to the past. 

“This law eliminates the problem identified by chief justice Zondo of fragmentation in procurement laws by creating a cohesive regulatory framework,” said Ramaphosa.

He said Zondo described corruption in procurement as “the centrepiece of state capture” and made several recommendations on how to prevent it.. 

Ramaphosa said the act establishes a public procurement office in the National Treasury. The office will put in place measures to ensure the integrity of the procurement process. He said the office must promote standardisation in procurement and modernise the system through technology and innovation.

“The law focuses on the people who are involved in procurement, requiring them to comply with a code of conduct and receive professional development and training. 

“No government official may be directed, either verbally or in writing, to violate the required procurement processes, and no official can be victimised or suffer ‘occupational detriment’ for reporting any unlawful instruction.”

This was a significant provision because many abuses that occurred during the state capture period involved political office bearers, business people and others putting pressure on managers to flout procurement regulations.

The law specifically prohibits any person from interfering with or trying to influence any procurement or trying to tamper with any tender bid after its submission or award.

Suppliers  found to abuse the procurement system or otherwise commit fraud and corruption are prevented through a “debarment order” from participating in procurement processes for a specified period.

The law excludes certain categories of people from submitting bids to the state. These are public office bearers, public servants in any sphere of government, officials in parliament and provincial legislatures, special advisers and employees of public entities. People who work for the state may not do business with the state, he said.

The act will make the procurement system more transparent, he said. It provides for the use of technology to disclose procurement information, including awards of bids, the process followed and suppliers awarded.

The act will help ensure public funds are put to the uses for which they are intended, he said, adding that the commission report shone a light on the weaknesses in the public procurement system.

“As we intensify our collective efforts to build an inclusive economy that creates jobs, the Public Procurement Act allows us to make the best use of public funds to support transformation and local development.”

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