The Constitution
Section 217(1) of the Constitution states that when Organs of State contract for goods and services they must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective.
Legal Framework
Section 195 of the Constitution requires public administration to be governed by the democratic values and principles enshrined in the Constitution, including:
- The promotion and maintenance of a high standard of professional ethics;
- The promotion of the effective, efficient and economic use of the State’s resources;
- Services must be provided impartially, fairly, equitably and without bias; and
- Public administration must be accountable.
Prevention and Combating of Corrupt Activities Act
- It is illegal for any public officer, subject to subsection (2), to acquire or hold a private interest in any contract.
Treasury Regulation 16A8.4 states:
“If a supply chain management official or other role player, or any close family member, partner or associate of such official or other role player, has any private or business interest in any contract to be awarded, that official or other role player must –
- disclose that interest; and
- withdraw from participating in any manner whatsoever in the process relating to that contract”.
Chapter 6 of the SMS Handbook (2003) states the following with regard to the disclosure of financial interests:
10.1 Chapter 3 of the Regulations prescribes that all senior managers must disclose their financial interests on an annual basis. Financial interests may take the form of shares, directorships or property which have the potential of conflict with official duties. Part D of the Regulations further describes the kinds of interests to be disclosed.