Actions on recommendations

Recommendations that are covered under existing rules, and therefore do not require further action, include noting the recipient of the transferred funds in departments’ financial statements to enable consequence management where funds have not been used for the allocated purpose.

Progress as at November 2023

The recommendations are covered under existing rules, and therefore do not require further action.

Actions on recommendations

The National Anti-Corruption Advisory Council (NACAC) will, in the course of its work to advise on strengthening the country’s anti-corruption institutional arrangements, consider the detailed recommendations of the Commission on the establishment of an ‘Anti-State Capture and Corruption Commission’ and a ‘Public Procurement Anti-Corruption Agency’. Based on the advice of the NACAC and the outcomes of the review of South Africa’s anti-corruption architecture by the Department of Justice, a comprehensive proposal on an effective and integrated anti-corruption institutional framework will be produced for public consultation, finalisation and implementation. To further strengthen the current anti-corruption capabilities, the Investigating Directorate (ID) will be established as a permanent entity within the National Prosecuting Authority (NPA) and ID investigators will be provided with the requisite criminal investigatory powers as contemplated in the Criminal Procedure Act, Act No. 51 of 1977. To address concerns with respect to the independence of the NPA, legislative amendments will be introduced to ensure greater transparency and consultation in the process for selection and appointment of the National Director of Public Prosecutions (NDPP), drawing on the process adopted for the selection of the current NDPP. Work will be undertaken to clarify the Minister's 'final responsibility' over the NPA as set out in section 33 of the NPA Act and settling aspects related to the NPA’s financial and administrative independence.

Progress as at November 2023

The National Anti-Corruption Advisory Council (NACAC) is working with a range of experts on recommendations to the President, to be finalised by March 2024.

The Department of Justice and Constitutional Development (DOJ&CD) has completed its comparative research on the models followed in other countries, and is preparing a proposal on the recommendations for a model for SA’s anti-corruption architecture. Draft legislation is also under consideration. This process will respond to the key recommendations of both the State Capture Commission and the National Anti-Corruption Strategy with regard to the anti-corruption commissions and agencies.

The NPA Amendment Bill was tabled in Parliament in September 2023, marking an important milestone in strengthening anti-corruption capacity. The Bill creates a permanent Investigating Directorate on Corruption within the NPA and grants its investigators powers to investigate offences, search and seizure and effect arrests. The Bill also proposes the appointment of a retired judge to exercise oversight over the investigators.

Legislative amendements are being considered with respect to the appointment process for the National Director of Public Prosecutions (NDPP) under a broader review of the appointment of heads of entities.

The DOJ&CD is developing a framework to enhance coordination with the NPA at both strategic and technical levels, and to clarify the Minister's "final responsibility" over the NPA as set out in section 33 of the NPA Act. The draft document will be finalised by December 2023.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to a Code of Conduct setting out the ethical standards that apply in the procurement of goods and services for the public.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. Section 9 of the Bill requires all officials involved in procurement to comply with the prescribed code of conduct or face sanction. Section 10 prescribes the conduct required of persons involved in public procurement.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to setting standards of transparency for inclusion in every procurement system.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. Among other things, the Bill requires the Public Procurement Office (PPO) to determine which information must be disclosed with regards to procurement. This information could include: - reasons why a decision is made to not follow an open competitive tender process; - all information regarding a bid; - the identity and details of each company which submits a bid; - the date, reasons for and value of an award to a bidder, including the record of the beneficial ownership of that bidder; and - contracts entered into with a supplier and invoices submitted by the supplier. The Bill further requires the PPO to issue instructions providing for measures for the public, civil society and the media to access procurement processes; scrutinise procurement; and monitor high-value or complex procurement.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to protecting Accounting Officers or Accounting Authorities from criminal or civil liability for anything done in good faith unless such person acts negligently.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. Section 54 of the Bill states: "A person who exercises a power or performs a duty in terms of this Act is not liable for any loss or damage suffered or incurred by any person arising from a decision taken or action performed in good faith in the exercise of a power or performance of a duty in terms of this Act"

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to the harmonisation of the legislation applying to public procurement.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill aims to create a single regulatory framework for public procurement and eliminate fragmentation in laws which deal with procurement in the public sector and, among others, provide for— • the establishment of a Public Procurement Office within the National Treasury and its functions; • the functions of provincial treasuries; • the functions of procuring institutions; • measures pertaining to the integrity of the procurement process; • a preferential procurement framework; • general procurement requirements; • enabling regulations on a procurement system including different methods of procurement and different regulations for different types of procurement; • the use of information and communication technology in procurement; • dispute resolution mechanisms; and • the repeal and amendment of certain laws

Actions on recommendations

The centralisation of procurement will be pursued only where it is feasible and where the benefits are likely to outweigh the costs in terms of reduced flexibility and departmental accountability for spending, delivery and outcomes. A return to a fully centralised system is unlikely to improve the integrity and efficacy of procurement. However, it is recognised that extreme decentralisation has also made the procurement system more vulnerable. A multi-pronged approach is required, which builds the state’s capacity in transversal contracts, reduces fragmentation, consolidates legislation, ensures enhanced regulatory and oversight capacity, and enhances transparency.

Progress as at November 2023

The Public Procurement Bill envisages a multi-pronged approach, which builds the state’s capacity in transversal contracts, reduces fragmentation, consolidates legislation, ensures enhanced regulatory and oversight capacity, and enhances transparency.

Actions on recommendations

The implementation of lifestyle audits for members of the National Executive is in process and is being managed by the Office of the Director-General in the Presidency.

Progress as at November 2023

The process has been delayed due to challenges with procurement of service providers.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to institutionalising lifestyle audits for all senior managers and officials involved in supply chain management.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill empowers the Minister of Finance to issue regulations regarding life style audits for procurement officials.

Actions on recommendations

Recommendations that are covered under existing rules, and therefore do not require further action, include ensuring provincial treasuries have consequence management mechanisms in place for recalcitrant a head of department or chief financial officer.

Progress as at November 2023

The recommendations are covered under existing rules, and therefore do not require further action.

Actions on recommendations

This is no longer relevant given changes in the accounting rules.

Progress as at November 2023

This is no longer relevant given changes in the accounting rules.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to ensuring compliance with transformation imperatives.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill requires that National Treasury introduce uniform treasury norms and standards for all procuring institutions, and that these advance advance transformation, beneficiation and industrialisation.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to better guidance and training of public procurement officials.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill aims to create a single regulatory framework for public procurement and eliminate fragmentation in laws which deal with procurement in the public. It has as the first of its objectives to "introduce uniform treasury norms and standards for all procuring institutions to implement their procurement systems".

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to providing appropriate management, contracting, reporting and enforcement guidelines for those who implement projects on behalf of government.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. Section 20 reads as follows: If a procuring institution transfers funds to a person or organisation other than an organ of state to perform a function on behalf of the procuring institution in terms of legislation authorising it, any procurement required to perform the function must be in accordance with this Act.

Actions on recommendations

Recommendations that are covered under existing rules, and therefore do not require further action, include ensuring project deliverables are included in business plans and effectively monitored.

Progress as at November 2023

The recommendations are covered under existing rules, and therefore do not require further action.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to providing appropriate management, contracting, reporting and enforcement guidelines for those who implement projects on behalf of government.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. Section 20 reads as follows: If a procuring institution transfers funds to a person or organisation other than an organ of state to perform a function on behalf of the procuring institution in terms of legislation authorising it, any procurement required to perform the function must be in accordance with this Act.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to providing appropriate management, contracting, reporting and enforcement guidelines for those who implement projects on behalf of government.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. Section 20 reads as follows: If a procuring institution transfers funds to a person or organisation other than an organ of state to perform a function on behalf of the procuring institution in terms of legislation authorising it, any procurement required to perform the function must be in accordance with this Act.

Actions on recommendations

Recommendations that are covered under existing rules, and therefore do not require further action, include standardised guidelines for the appointment of implementing agents.

Progress as at November 2023

The recommendations are covered under existing rules, and therefore do not require further action.

Actions on recommendations

Recommendations that are covered under existing rules, and therefore do not require further action, include the use of implementing agents, the use of transfer payments, re-prioritisation of budgets, oversight responsibilities of officials and structures, ensuring adequate accountability, and the keeping of reliable financial records.

Progress as at November 2023

The recommendations are covered under existing rules, and therefore do not require further action.

Actions on recommendations

Government is considering – through the draft Public Procurement Bill and amendments to the Public Finance Management Act – the recommendation that no service provider may be awarded a tender or may conclude any contract with a public institution unless it has produced proof of relevant qualifications, skills experience or expertise required to perform the work. It is intended that this legislation be sent to Parliament before the end of this financial year.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill provides a list of offences which criminalise, among others, causing "loss of public assets or funds as a result of a wilful act or gross negligence in the implementation of this Act". Furthermore the Bill provides for custodial sentencing for anyone who connives or colludes to commit a corrupt, fraudulent, collusive or coercive or obstructive act related to procurement under this Act.

Actions on recommendations

Government is giving consideration – through the draft Public Procurement Bill and amendments to the Public Finance Management Act – to prohibiting the awarding of a tender unless the responsible official has satisfied themselves that the service provider is qualified. It is intended that this legislation be sent to Parliament before the end of this financial year.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. Section 55 sets provides a list of offences including 55(1)(f) which criminalises causing "loss of public assets or funds as a result of a wilful act or gross negligence in the implementation of this Act."

Actions on recommendations

Measures to prevent the cession of rights by tender contractors unless disclosed in bid documents should make provision for instances where amendments to company ownership, such as mergers and acquisitions, make the cession of rights necessary and legally permissible.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill empowers the Public Procurement Office to issue binding instructions on procurement.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to regulations to provide clear guidance on the processes to be followed when procuring from a sole source. It should be noted that there are certain goods and services that are provided by limited suppliers due to the uniqueness of the product or service they provide. While it is necessary to tighten regulations with respect to sole providers, it is not feasible to completely do away with these types of deviations.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill provides the circumstances under which procurement can be done when procuring from a sole source, or other deviations. It also prescribes the procedures that must be followed.

Actions on recommendations

The Public Procurement Bill is expected to be finalised and submitted to Parliament by March 2023. The Bill will address the Commission’s recommendations with respect to the establishment of a professional body to which all officials who work in the area of public procurement should belong.

Progress as at November 2023

The Public Procurement Bill was introduced in Parliament in June 2023 after its approval by Cabinet. The Bill establishes the Public Procurement Office (PPO) and requires the PPO to : - promote and implement necessary measures to maintain the integrity of procurement; - ensure the professional development and training of officials involved in procurement. In addition, the Bill empowers the Minister to issue regulations regarding competency requirements for officials involved in procurement. These provisions support the professionalisation of the public service.