KNYSNA NEWS - Subsequent to a Constitutional Court ruling made on 16 February 2022, the National Minister of Finance has not received any clarity on whether the previously proclaimed invalidity of the Preferential Procurement Regulations continues to be suspended or not.
This may sound confusing, but Knysna Mayor Levael Davis clarified the matter in a recent press release.
"The Constitutional Court was expected to address this issue during an appeal brought against a ruling of the Supreme Court of Appeal by the Minister.
"This court had previously ruled that the Minister's promulgation of certain regulations regarding the Preferential Procurement Policy Framework were unlawful, effectively declaring the Preferential Procurement Regulations invalid in its entirety. This declaration of invalidity was suspended for 12 months," Davis explained.
"This period ended on 2 November 2021 and the matter was heard by the Constitutional Court. Unfortunately neither the minority nor majority judgements of the court technically addressed this issue of suspension in the body of its orders delivered in February.
"In response to an urgent request for clarity on the matter lodged by the minister, the Constitutional Court has issued a directive that parties have until 25 March 2022 to file papers on this matter."
He said that, after first advising organs of state to hold tenders advertised after
16 February in abeyance and to not advertise any tenders after this date, National Treasury has issued interim measures that should be followed.
"The mayoral committee will urge Council to heed and implement this advice, as failure to do so can hold serious repercussions for local municipalities, and may well affect service delivery."
He said it means that Knysna Municipality can ask for exemption from the Preferential Procurement Policy Framework Act 5 of 2000, and ask National Treasury for permission to finalise tenders and informal tenders that Knysna has in the supply chain management system, and to continue to advertise new tenders and informal tenders until the issue has been resolved.
"Current tenders may also be extended and transversal tenders can be used to procure items like fuel, refuse trucks, tyres and such."
Davis confirmed that the regulations that had originally been deemed unlawful will not be considered or implemented in any tenders or quotations.
"These include determining if prequalification criteria are applicable to the tender in terms of preferential procurement, and regulation in terms of subcontracting as a condition of tender."
He said this is a prime example of a national issue having an effect at a local level.
"We will continue to procure goods and services that allow us to fulfil our mandate of service delivery, but we must do so while [abiding] to the rules and regulations within which we may operate.
"This is part of our commitment to creating an inclusive, innovative and inspired Knysna."
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