Cape Town Mayor Challenges National Procurement Law
Legal Battle Brews Over Service Delivery Concerns
A legal showdown is unfolding in South Africa as the City of Cape Town contests a new national procurement act, arguing it will hinder efficient service delivery and infringe upon the autonomy of local governments. The challenge, brought by Mayor Geordin Hill-Lewis, targets both the government and President Cyril Ramaphosa.
Constitutional Court Challenge
Hill-Lewis asserts that flaws in the parliamentary adoption of the Public Procurement Act render it unlawful. The legislation, enacted in July 2024, aimed to establish a standardized system for state contracting, ensuring fairness, transparency, and cost-effectiveness—principles enshrined in the constitution.
The Presidency previously stated the act was designed to address past procurement weaknesses that facilitated corruption, including instances of state capture. Prior regulations were described as fragmented and restrictive.
Procedural Concerns Raised
Hill-Lewis alleges that seven out of nine provinces lacked the necessary legal authority to vote on the bill within the National Council of Provinces (NCOP). He further contends that public participation was inadequate, with insufficient timeframes and notice provided by both provinces and the NCOP.
Concerns were also raised regarding inaccurate information presented to the NCOP and National Assembly. The Assembly, according to Hill-Lewis, failed to adequately consult on revisions to chapter 4, neglected to consider all public feedback, and did not adhere to proper bill introduction procedures.
“We believe this [act] should be invalidated due to fatal shortcomings in public participation and parliament’s procedures. Beyond these issues, it is vital that any new consideration of the [act] takes into account the huge red tape burden it will place on local government and the unconstitutional interference it permits in municipalities.”
—Geordin Hill-Lewis, Mayor of Cape Town
South Africa’s municipal infrastructure is already facing significant strain. According to Statistics South Africa, approximately 62.3% of South African households experienced some form of service delivery protest in the 12 months leading up to March 2024, often related to water, electricity, and sanitation (Stats SA).
Impact on Local Services
Hill-Lewis emphasized the potential for the new act to impede the swift response needed to address urgent local issues like water shortages, sanitation problems, and electrical outages. He argues the increased bureaucracy will directly affect the quality and speed of service delivery to residents.
At a local level, we often have to procure fast to respond to urgent water, sanitation, electrical, waste and environmental issues. This [act] impedes the ability to respond swiftly to local needs by introducing more red tape to complicate procurements. This inefficiency will have a direct effect on service delivery to residents.
The outcome of this legal challenge could significantly shape the future of public procurement in South Africa and the balance of power between national and local government.
