Existing procurement rules stay in force while Treasury redevelops the procurement bill

Finance Minister Enoch Godongwana told Parliament on 21 October 2026, in the Medium-Term Budget Policy Statement, that the Constitutional Court's judgment on the Public Procurement Act does not create a vacuum in procurement law. The court invalidated the Act because of the consultation process in Parliament, not because of its substance.

The existing framework remains in place: the Public Finance Management Act (PFMA), the Municipal Finance Management Act (MFMA), the Preferential Procurement Policy Framework Act, and the applicable procurement regulations and instructions. The Minister said this ensures continuity and legal certainty. While the Public Procurement Bill is being redeveloped, problems in the current framework will be addressed through changes to regulations and instructions.

Treasury is also publishing proposed amendments to the PFMA and the MFMA for public comment. The PFMA draft clarifies the responsibilities of accounting officers, boards and executive authorities and strengthens Treasury's ability to act against financial misconduct and persistent non-compliance. The MFMA changes focus on funded budgets, revenue management, clearer accountability and earlier intervention in distressed municipalities.

The amended Municipal PPP Regulations have been submitted to Parliament for a 30-day scrutiny period, the final step before implementation. Of the 68 projects in the PPP pipeline, 31 are municipal.

What this means for suppliers

• Keep bidding under the current rules. The PFMA, MFMA, the Preferential Procurement Policy Framework Act and the existing regulations and instructions all still apply.
• Watch for new regulations and Treasury instructions. That is how Treasury says it will fix problems while a new bill is drafted.
• The PFMA and MFMA amendment drafts are open for public comment.