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Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000)

Regulations

Preferential Procurement Regulations, 2017

14. Remedies

 

(1) Upon detecting that a tenderer submitted false information regarding its B-BBEE status level of contributor, local production and content, or any other matter required in terms of these Regulations which will affect or has affected the evaluation of a tender, or where a tenderer has failed to declare any subcontracting arrangements, the organ of state must—
(a) inform the tenderer accordingly;
(b) give the tenderer an opportunity to make representations within 14 days as to why—
(i) the tender submitted should not be disqualified or, if the tender has already been awarded to the tenderer, the contract should not be terminated in whole or in part;
(ii) if the successful tenderer subcontracted a portion of the tender to another person without disclosing it, the tenderer should not be penalised up to 10 percent of the value of the contract; and
(iii) the tenderer should not be restricted by the National Treasury from conducting any business for a period not exceeding 10 years with any organ of state; and
(c) if it concludes, after considering the representations referred to in subregulation (1)(b), that
(i) such false information was submitted by the tenderer—
(aa) disqualify the tenderer or terminate the contract in whole or in part; and
(bb) if applicable, claim damages from the tenderer; or
(ii) the successful tenderer subcontracted a portion of the tender to another person without disclosing, penalise the tenderer up to 10 percent of the value of the contract.

 

(2)

(a) An organ of state must—
(i) inform the National Treasury, in writing, of any actions taken in terms of subregulation (1);
(ii) provide written submissions as to whether the tenderer should be restricted from conducting business with any organ of state; and
(iii) submit written representations from the tenderer as to why that tenderer should not be restricted from conducting business with any organ of state.
(b) The National Treasury may request an organ of state to submit further information pertaining to subregulation (1) within a specified period.

 

(3) The National Treasury must—
(a) after considering the representations of the tenderer and any other relevant information, decide whether to restrict the tenderer from doing business with any organ of state for a period not exceeding 10 years; and
(b) maintain and publish on its official website a list of restricted suppliers.