Preferential procurement in the public sector: The case of Amathole

Abstract

The end of the apartheid era in South Africa ushered in a new institutional environment through changes to legislative frameworks in government depart-ments. A key aspect of the transformation is the economic empowerment of the mainly historically disadvantaged groups in the country through procurement. The thrust of the issue is the assessment of the extent of compliance with Act No. 5 of 2000: Preferential Procurement Policy Framework Act (PPPFA), 2000 at government departments, with particular focus on the Amathole region of the Eastern Cape Province. The assessment was undertaken in a qualitative and quantitative research study conducted among key construction industry stakeholders such as public-sector clients, architects, engineers, and quantity surveyors based within the Amathole region. Selected findings include that there is a perceived low level of awareness of preferential procurement in the public sector as the majority of the institutions investigated have not completely implemented procurement responsibilities as a dedicated function within their organisations. Another significant finding arising from the study is that there are conflicting perceptions among consultants regarding procurement strategies for different types of project.