The National Procurement Act, rushed through Parliament in 2024 by the ANC in time for the elections, has now come back to bite us.   Some of the issues in this article-:

• Treasury’s budget promises mean nothing when procurement  rewards politics over performance, merit,  value for money.
• Mashatile is speaking louder than President Ramaphosa on BEE, the main issue surrounding government procurement
• The GNU has done little, if anything, to tackle state corruption  focused in this area
• Public procurement still remains a tightly state-captured and controlled process

A Budget That Promises Stability — But Avoids Accountability

National Treasury’s mid-term budget spoke at length about “stabilising public finances”, “rebuilding investor confidence” and “laying the foundation for growth.”

Yet, beneath these phrases lies an unaddressed truth: South Africa’s procurement system remains fundamentally flawed. Every tender still operates under the points-based preference model, which rewards political alignment and racial identity over price, merit, or performance.

This is not an administrative issue — it is the heart of how state money flows. Until it is reformed, no budget statement, however prudent, will convince investors that South Africa is ready for renewal.

The Public Procurement Act: Still Captured by Political Design

Passed just before the May election, the Public Procurement Act of 2024 was presented as a step toward cleaner governance. In reality, it entrenched the same old logic: political preference first, economic value second.

Despite a full year of public consultation involving thousands of companies and professional bodies, the final legislation ignored the key recommendation made across the board — that procurement should be based on performance and price, not political criteria.

Even the DA-led Western Cape Provincial Government formally rejected the Bill, warning that it “replaces inclusion with racial arithmetic.” That warning was correct. Yet now, under the Government of National Unity (GNU), the Act remains untouched, and Treasury has shown no urgency to correct its flaws.

A Silent Portfolio: The Role of Deputy Minister Ashor Sarupen

Deputy Minister Ashor Sarupen, responsible for procurement oversight in Treasury, has one of the most technically important jobs in the GNU. His mandate is to modernise and depoliticise the procurement system — the point where public money meets private service delivery.

Yet since the Act’s passage, there has been no reform plan, no implementation timeline, and no report to Parliament. The legislative file sits dormant, even as tenders continue to be awarded under rules that elevate political discretion over efficiency.

Silence, in this case, is not neutral. It is complicity by omission — and it undermines both the GNU’s credibility and business confidence.

Why Procurement Reform Matters to Business and Investment

Procurement is not a technicality — it defines the operating environment for every major business engaging with the state.

When points are awarded for racial classification rather than productivity or innovation, foreign due diligence systems immediately flag South Africa as high-risk. No multinational can justify investment in a market where “political eligibility” counts for more than “value for money.”

The result is predictable: international lenders hesitate, project partners withdraw, and domestic companies focus on survival rather than expansion.

This is how a flawed procurement system quietly erodes the economy from within — not through visible scandal, but through lost confidence.

Mashatile’s Hard Line on BEE

During recent parliamentary questioning, Deputy President Paul Mashatile reaffirmed that the ANC would not replace B-BBEE with any new economic inclusion model.

His position was blunt: “We want legislation that benefits the majority of South Africans. There’s no need to ditch it and introduce something else.”

This means the GNU is still locked in the ideological framework of the Zuma era, despite promises of reform and renewal. The message to investors is unmistakable: transformation remains a political project, not an economic one.

Parliament’s Duty: Reassert Oversight and Independence

The problem cannot be solved by Treasury alone. Parliament must reassert its constitutional role in ensuring that public expenditure serves national interests — not political factions.

This begins with reopening the Public Procurement Act and restoring an independent regulator that is fully insulated from political influence.
Such a regulator should report directly to Parliament, not Treasury, and must have the power to audit, publish, and enforce compliance without fear or favour.

Only then can South Africa begin to rebuild credibility with the global investment community and prove that fiscal discipline is matched by integrity.

Reform or Repetition: The GNU’s Defining Choice

The Government of National Unity stands at a crossroads. It can continue with rhetorical unity while ignoring the structural corruption within its own systems — or it can use its parliamentary majority to begin genuine reform.

If the GNU truly wishes to convince business and the world that South Africa is ready to turn a corner, it must start by cleaning the pipes through which state money flows.

For now, the silence from Treasury is deafening.

— Patrick McLaughlin

Parliamentary Correspondent & Political Analyst
https://parlyreportsa.com