Does South Africa’s law, policy and practice, including the Public Procurement Act 28 of 2024, enhance transparency in public procurement at municipal level?

Abstract

Public procurement is big business, and its effectiveness reflects good governance. However, it has been identified as a primary avenue through which taxpayer money is diverted from state institutions in South Africa. In local government, this abuse of the system cripples municipalities' capacity to meet their constitutional obligations. The study contends that there is generally a disproportionate focus on public spending at the national level, while local governments frequently escape adequate scrutiny. This lack of oversight is concerning. Evidence from the Auditor General reveals that billions of Rands are unaccounted for at the local level each year while service delivery deteriorates. As the primary agents of service delivery, municipalities require transparency to enable meaningful public oversight of public funds.