Constitutional Court Declares Public Procurement Act, 2024 Invalid

Posted 18 September 2026 Written by Acts Online
Category Public Procurement

Brought to you by SAnews: The Constitutional Court has delivered a judgment declaring that the Public Procurement Act, 2024 was enacted in a manner inconsistent with the Constitution and is consequently invalid.

The legal challenge to the statute was brought by the Premier of the Western Cape Government and the City of Cape Town cited as applicants against the Speaker of the National Assembly, the Chairperson of the National Council of Provinces, and the Minister of Finance, among others. The ruling sets aside the legislation on the grounds of procedural unconstitutionality in the parliamentary passage of the bill.

The Public Procurement Act, 2024 had been introduced to establish a single, overarching regulatory framework for all public procurement across national, provincial, and local spheres of government, repealing the Preferential Procurement Policy Framework Act, No. 5 of 2000. The invalidation suspends the planned consolidation of state procurement rules under section 217 of the Constitution of the Republic of South Africa, 1996.

Litigation parties and institutional respondents cited in the matter include:

  • The Premier of the Western Cape Government (applicant);
  • The City of Cape Town (co-applicant);
  • The Speaker of the National Assembly;
  • The Chairperson of the National Council of Provinces; and
  • The Minister of Finance.

The Minister of Finance confirmed that National Treasury notes and respects the judgment. Pending further legislative action by Parliament or formal circulars from National Treasury, organs of state remain subject to the existing prescripts of the Public Finance Management Act, No. 1 of 1999 (PFMA), the Local Government: Municipal Finance Management Act, No. 56 of 2003 (MFMA), and the Preferential Procurement Regulations, 2022.

What this means for you, your business, or your clients

  • For yourself: Legal advisors and procurement compliance practitioners must pause transition projects pegged to the invalid 2024 statute and advise on procurement disputes under existing PFMA and MFMA supply chain regulations.
  • For your business: Commercial entities tendering for government contracts must continue aligning bids with organ-specific preferential procurement policies and scorecards issued under the 2022 Preferential Procurement Regulations.
  • For your clients: Bidders and state-owned entities must not alter supply chain management documentation or Broad-Based Black Economic Empowerment (B-BBEE) evaluation criteria to match the invalidated Act, mitigating the risk of tender awards being challenged on legality grounds.

Originally published at https://www.sanews.gov.za/south-africa/godongwana-notes-constitutional-court-judgment-public-procurement-act

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