New procurement law signed by Ramaphosa could take several months to come into effect

CAPE TOWN - A contentious new procurement law signed by President Cyril Ramaphosa in July could take several more months to come into effect.

The law - which will see state procurement across all levels of government having to pass through a central government office - has the Democratic Alliance (DA) in the Western Cape up in arms.

But National Treasury says although the Public Procurement Act is law, it will be phased into force.

The Public Procurement Act, passed by Parliament before the May elections is intended to rectify some of the shortcomings raised by the Zondo Commission of inquiry into state capture.

But Western Cape Premier Alan Winde and Cape Town Mayor Geordin Hill-Lewis are both asking the Ramaphosa to reconsider some of its provisions, arguing they’re impractical, will delay service delivery and limit access to service providers.

National Treasury said the act would come into effect in phases, and dates still need to be determined for it coming into force across the different levels of government, as well as in public entities.

Several provisions of the act require regulations to be drafted which will require consultations with ministers, the South African Local Government Association, Parliament and the public.

These include regulations for the procurement of infrastructure and capital assets.

The National Treasury says the readiness of the new procurement institutions to begin operating will determine on which dates the various provisions of the act can come into effect.

Until such time, the current procurement framework provided for in the respective Public and Municipal Finance Acts as well as the Preferential Policy Procurement Framework Act, remain in force.