PUBLIC PROCUREMENT MULTI-JURISDICTIONAL GUIDE 2014/15: SOUTH AFRICA Q&A

The principal piece of legislation that regulates public procurement is the Constitution of the Republic of South Africa 1996 (Constitution). Section 217 of the Constitution requires that when an organ of state contracts for goods and services, it must do so in accordance with principles of fairness, equitability, transparency, competitiveness and cost-effectiveness.

This constitutional requirement is echoed in section 51(1)(a) of the Public Finance Management Act 1 of 1999 (PFMA), which states that an accounting authority for, among others, a national or provincial department or public entity must ensure that the particular department or entity has and maintains an appropriate procurement and provisioning system which is: fair, equitable, transparent, competitive and cost-effective.