Tough era kicks in at PPADB

MBONGENI MGUNI
Staff Writer | Friday September 7, 2012 00:00

The long-anticipated regulations came into effect on August 15 through the invocation of a section of the PPADB Act, meaning that all businesses that wish to bid for government tenders or otherwise supply government require a PPADB registration certificate.

According to the PPADB's executive director of works, Mosimolodi Lefhoko, only micro-procurement bids of not more than P30 000 are exempted from the requirement. 'Yes, from August 15, registration with PPADB is a mandatory or compliance requirement for all bidders in order to participate in central government tenders,' Lefhoko said in a written response to Business Week enquiries.

'There has not been any request to extend as contractors were given twelve months to register before the certificate became mandatory.' The executive director explained that contractor registration was ongoing at the PPADB and those wishing to register could submit applications as there was no deadline for the registration itself.

'The only difference is that those who do not have PPADB Registration Certificates will be disqualified from tendering,' he said. The board says the registration process is meant to ensure that companies wishing to do business with the government meet the necessary requirements to deliver in the most cost-effective way.

Government is the local economy's single biggest buyer, with nearly two-thirds of the annual budget dedicated to procurement. While government has pumped billions into the economy via procurement, concerns have increasingly been raised about the quality and delivery of projects.

Among various initiatives, the PPADB has enacted rules allowing it to suspend or de-list contractors and affiliated parties found guilty of bribery, taking kickbacks, collusion, fronting, conflict of interest, uncompetitive and unfair dealing, unprofessional conduct and incompetence.  The disciplinary regime is done through the register of contractors.