THE IMPORTANCE OF USING DIFFERENT METHODS OF ANALYSIS IN DEALING WITH THE CHALLENGES OF COLLUSIVE TENDERING AND OTHER FORMS OF CORRUPTION IN THE SOUTH AFRICAN PUBLIC PROCUREMENT SYSTEM
Abstract
This study reviews and examines policy, legislative and institutional frameworks dealing with collusive tendering or bid-rigging as an anti-competitive behaviour and practice in the South African public procurement system. A competitive public procurement system is a constitutional mandate and requirement in South Africa; therefore, the well-functioning government and delivery of services are vital for growth, development and social welfare in any country. The devolution of procurement function assumes that all organs of state have the capability and capacity to detect and prevent anticompetitive behaviour and practices. A postulation is made in this study that public procurement regulations and rules in South Africa are not robust enough on measures to detect and safeguard against bid-rigging and collusive behaviour. Concomitant corruption elements such as the manipulation of the bid specifications, designs, industry and technical standards, and technological choices are also used as tools to undermine competition and aid certain bidders. While competition policy and law are critical in combating the scourge of collusive conduct in the public sector markets, an effective approach involves reforms to the public procurement systems itself. This study advocates for the usage of different methods of analysis in dealing with the challenges of collusive tendering and other forms of corruption in the South African public procurement system. This will require a review of policies, legislation and institutions dealing public procurement and competition.References
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Case law
American Natural Soda Ash Corporation and Another v Competition Commission of South Africa [2005] 3 All SA 1 (SCA)
Competition Commission v Aveng (Africa) Limited t/a Steeledale and others, Reinforcing Mesh Solutions (Pty) Ltd, Vulcania Reinforcing (Pty) Limited, and BRC Mesh Reinforcing (Pty) Limited (CR057Dec09) [2012] (07 May 2012)
Competition Commission v Power Construction (West Cape) (Pty) and Others; In re: Power Construction (West Cape) (Pty) and Another v Competition Commission (CR166Dec14) [2016] ZACT 87 (25 August 2016)
Southern Pipeline Contractors and Another v Competition Commission (105/CAC/Dec10, 106/CAC/Dec10) [2011] ZACAC 6 (1 August 2011)
Legislation, Regulations, and Proclamations
Competition Act 89 of 1998 (South Africa)
Constitution of the Republic of South Africa, 1996
Preferential Procurement Regulations, 2017 (South Africa)
Prevention and Combating of Corrupt Activities Act 12 of 2004 (South Africa)
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