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Treasury Shines Light on Preferential Procurement Regulations

June 2, 2022

National Treasury

The 2017 Preferential Procurement Regulations will remain in place until 15 February 2023 unless new Regulations are promulgated before that date.

In a statement, national treasury confirmed that the Constitutional Court has declared that the “suspension of the declaration of the order of invalidity of the 2017 Regulations is still valid for the remainder of the 12-month period, namely until 15 February 2023”.

Treasury pointed out that the 2017 Regulations in their entirety, therefore, remain valid.

Other developments include that, from 30 May 2022, all exemptions granted to deal with the period of uncertainty following the Court’s judgment of 16 February 2022, lapse (according to the condition in the letters of exemptions); all new quotations must be requested and tenders must be advertised, and dealt with, in accordance with the 2017 Regulations; a quotation requested or a tender advertised before today must be dealt with in terms of the exemption and the internal procurement policy is in place for the duration of the exemption.

Treasury added that public comment on the Draft Preferential Procurement Regulations published on 10 March 2022 is under consideration and final regulations that “accord with the Constitutional Court’s judgment of 16 February 2022” will be drawn up.