Statement by the City’s Mayoral Committee Member for Finance, Councillor Siseko Mbandezi

The City of Cape Town will continue with the advertising of tenders to ensure that residents receive services, supplier-businesses are protected and the local economy is not harmed.

Tenders will continue to be advertised in terms of the existing Supply Chain Management (SCM) Policy, which is aligned with the Preferential Procurement Policy Framework Act (PPPF Act).

This decision has been taken after due consideration of a legal opinion by senior counsel and a full risk trade-off assessment.

On 25 February 2022, the National Treasury had advised all Organs of State to halt the awarding and advertising of new tenders. This follows the Constitutional Court’s confirmation of the Supreme Court of Appeal’s judgment indicating the Finance Minister had acted outside of his powers in 2017 by introducing pre-qualification criteria in order to be eligible to tender under the PPPF Act.

The City is, however, continuing with SCM processes to enable the delivery of services and to avoid further disruptions. This approach is echoed in communication received from the Western Cape Government Treasury. The City has observed that the National Treasury has already published draft Preferential Procurement Regulations 2022 for public comment.

Source: City Of Cape Town