amaBhungane | Why emergency procurement under state of disaster could be a new licence to loot | Business

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The state of disaster regulations confer wide discretion on state institutions to pursue emergency procurement to address the energy crisis. But there is no detail about how these processes will be effective or be subject to sufficient oversight.

When President Cyril Ramaphosa announced the state of disaster on the energy crisis in his SONA speech, he lauded the benefits of the declaration. He explained that it would"enable us to accelerate energy projects and limit regulatory requirements while maintaining rigorous environmental protections, procurement principles and technical standards".

A statement issued by members of the civil society Procurement Reform Working Group – of which amaBhungane is a member – notes:"It appears from the regulations that all state institutions are now freed to pursue emergency procurement in an astonishing variety of open-ended situations.

The goals of the energy crisis regulations are to minimise the impact of load shedding, enable the connection of new generation of electricity and to improve Eskom's plant performance. A variety of ministers are given broad powers to take action to achieve these goals, and procuring goods and services will be a vital component of that action.

Emergency procurement is usually characterised by less reliance on competitive bidding processes and by greater discretion given to procurement officials. However, the trade-off for these relaxations in procurement rules has to be a regime of increased oversight and accountability.A deep dive into the big business story of the week, as well as expert analysis of markets and trends.

The data – tender adverts , suppliers, value of contracts, and implementation – needs to be published on a publicly-accessible portal and at least every week.

 

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Tenders for gorvernment family and friends. We know the drill.

Time for WC to take advantage.

But we always said/knew it would be that so why the surprise?

State of disaster is just another means for MYANC to steal and loot more from us! VoetsekANC AncIsCorrupt

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