MEDIA STATEMENT 20-01-2023

by | 20 Jan 2023 | All News, News around the Web

As Executive Mayor I am delighted to announce that during our very first Council meeting for 2023, Council unanimously resolved to approve Item 5/1/23 – Preferential Procurement Regulations and ammendment of the Supply Chain Management Policy of Saldanha Bay Municipality.

On the 16th of February 2022 the Constitutional Court of South Africa handed down judgment in the application for leave to appeal against a judgment and order of the Supreme Court of Appeal (SCA). This concerns the validity of the Preferential Procurement Regulations, 2017 (the 2017 Regulations) made by the Minister on 20 January 2017 in terms of section 5 of the Preferential Procurement Policy Framework Act, 2000.

The SCA held that the Minister of Finance of South Africa promulgation of Regulation 3(b), 4 and 9 of 2017 Regulations was unlawful. Due to what the SCA held to be the interconnectedness of the regulations, the entirety of the 2017 Regulations was declared invalid on the basis that the content of the 2017 Regulation exceeded what the Minister could permissible regulate in terms of section 5 of the Act and section 217 of the Constitution. The declaration of invalidity was suspended for 12 months.  According to section 18(1) of the Superior Courts Act, a SCA judgment and order are suspended when the application for leave to appeal is lodged.

The majority judgment of the Constitutional Court dismissed the appeal against the SCA judgment. The majority judgment was silent on the question of remedy. It did not address itself to the specific issue of the status of the SCA’s order of suspension.  The minority judgement addresses the issue at footnote 28, where it asserts that “the period of suspension expired on 2 November 2021.

To address the uncertainty, the Minister decided to bring an application to the Constitutional Court on an urgent basis to seek confirmation from the Court that the order of invalidity of the 2017 Regulations has been and continues to be suspended. Confirmation is sought by way of declaration, variation and or clarification.  This is to establish whether the 2017 Regulations-remain valid until 15 December 2023, unless repealed sooner, or are no longer valid from 16 February 2022, the date was of the Constitutional Court Judgment.  On the 30th of May 2022 the court handed down judgment.

This judgment necessitated SBM to change our Policy.

Here comes the EXCELLENT NEWS!! Going forward the points system on a tender will favor LOCAL WESKUS COMPANIES when it comes to the “locality of a supplier”!!
Within the boundaries of SBM will be awarded the highest points.
Within the boundaries of Weskus District will be awarded the second highest points.
Within the Western Cape the third highest points.
Outside the Western Cape will be awarded zero extra points!

We have always argued that local is SBM not National!! Now it will be so!! I am delighted and it is a victory for our local suppliers!!

We as a Council welcome and fully support these changes!!

I would like to thank the CFO and his Team for their continued Level of good work and for embracing the #CommunityFirstApproach !

Kind regards
Executive Mayor
Cllr Andre Truter

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