The Congress of South African Trade Unions (COSATU) is deeply concerned by the dangers posed by the Constitutional Court ruling setting aside the Public Procurement Act. The Federation is extremely worried about the unintended consequences of the court ruling would be to allow the wild west that is public procurement in many state institutions to continue.
COSATU has supported the Public Procurement Act, in particular its provisions to boost emerging SMMEs, historically disadvantaged communities and local businesses. We believe the Act drafted by the African National Congress led government will be a critical weapon in the war against the state capture and corruption that has become a cancer across the state, especially in state-owned enterprises and municipalities.
The Act provides for a single online and transparent public procurement system, as is already done with public service institutions, including provincial departments. Equally they would be expected to, where possible, support emerging SMMEs, historically disadvantaged communities and local businesses. This is fundamental if we are to nurture and sustain locally produced goods, jobs and businesses which are under dire threat from cheap imports, and to give space for SMMEs to emerge and grow.
Workers have paid a horrific price with the explosion of state capture and corruption that has become the norm in many parts of the state. At its heart are the porous public procurement systems. Key targets as highlighted in gory details by the Zondo Commission of Enquiry into State Capture and Corruption have been state-owned enterprises, in particular Eskom, Transnet, Metro Rail and countless municipalities and departments.
It defies logic that in the 21st century where communications have become digitised, that many municipalities opt for manually written quotes. Many state entities have shown a dogmatic resistance to any sense of oversight and transparency, let alone universal systems. The reason being that corruption thrives best under chaos and darkness. Moves towards transparency and accountability are a direct threat to that.
The ability of Treasury’s Public Procurement Office to oversee, and where state institutions fall foul of the law, to intervene and hold them accountable is crucial if the state is to turn the tide against endemic public procurement corruption, save scarce public resources, support emerging SMMEs and protect badly needed local jobs.
It is urgent that Treasury move with speed to retable the Public Procurement Bill at Parliament before the 2027 State of the Nation Address to enable the legislature sufficient time to consider, process and adopt the Bill before the 2029 elections. It is equally critical that Parliament address the Constitutional Court’s findings that it had shortcut public participation and Provincial Legislature mandating processes.
COSATU urges Treasury and Parliament to address concerns raised about the complexity of the Act and its subsequent Regulations, in particular for SMMEs. It is equally crucial that the revised Bill be extended to include local government, the weakest link in the state. Time is of the essence if we are to overhaul a leaky public procurement system and ensure that its R1 trillion annual spending is strategically deployed to support local goods, jobs and businesses.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za