Chair, Deputy President, Ministers and Deputy Ministers, and colleagues, as we are all aware, the procurement of goods and services, and the disposal and letting of assets by Parliament, must be done in compliance with section 217 as set out in Chapter 13 of the Constitution of the Republic of South Africa. This has to be read in conjunction with schedule 3 of the Financial Management of Parliament Act, referred to as FMPA in this statement. The Preferential Procurement Policy Framework Act and the Broad-Based Black Economic Empowerment Act must also be considered.
The draft Supply Chain Management Regulations were prescribed by the executive authority and published for public comment in the Government Gazette of 4 February 2013, as required by the Financial Management of Parliament Act. These regulations may only come into effect after approval by Parliament; hence it is presented here today.
The Speaker of the NA and the Chairperson of the NCOP referred the draft Supply Chain Management Regulations in the ATC on 9 May 2013, to the Interim Joint Committee on Scrutiny of Delegated Legislation, as well as the Standing and Select Committees on Finance. The two committees considered comments from internal stakeholders and also considered the report on 22 and 24 October 2013.
I must indicate to the House that the DA decided to walk out of the first meeting, citing party activities. [Interjections.] They were led by the shadow minister, so what can you expect? They missed an opportunity. [Interjections.] In their desperate attempt to hold back our development agenda, the DA came to the second meeting to object to the reports being approved.
I must indicate that notwithstanding their objection, in fulfilling their mandate the two finance committees made the following discovery. In their absence, we established that the regulations provide for the definition of the conflict of interest. It is clearly defined and structured to accommodate all examples of business relationships, including those of the Parliamentary employee and his/her family. I must indicate that we also established that this definition is not a closed list.
In the absence of the DA, we also established that the regulations ensure that the accounting officer is empowered to exercise discretion regarding cancelling a bid when there are unforeseen eventualities.
I must also emphasise that this draft does not repeal the FMPA provision of prohibiting accounting officers from making fruitless and wasteful, unauthorised, or irregular expenditure.
In the absence of the DA, the two committees established that the regulations provide for the framework for appointment of the Bid Adjudication Committee and the functions of the committee.
In addition, the committees scrutinised whether there had been any unauthorised retrospective operations and saw to it that the regulations conformed to the objects of the principal Act.
We are delighted to report to this House that the proposed supply chain regulations comply with the provisions of the FMPA, chapter 6 and schedule 3, and cannot override the FMPA. Instead, the regulations are operational tools to implement the FMPA. Instead of chasing shadows, the two committees have satisfied themselves that the regulations comply with the provisions of the FMPA.
Hence, on behalf of the Standing Committee on Finance I submit the cited report to this House for approval. Ke a leboga Modulasetilo. [Thank you, Chairperson.] [Applause.]
There was no debate.