Eskom’s and other parastatals’ exemption for certain sections of the PPPFA

At round about the exact same time as Pravin posted this notice, I was writing my post on Eskom's illegal behaviour.  My bona fides are still intact.

You can look through the Treasury notice but it exempts schedule 2 (major public entities) and schedule 3 entities from a variety of sections of the PPPFA until the 7th of December, 2012.  There is only one section that is of significance to my post about set-asides, Eskom and the PPPFA.

2. (1)  These regulations apply to organs of state as contemplated in section 1 (iii) of the Act and all public entities listed in schedules 2, 3A, 3B, 3C and 3D to the PFMA and municipal entities.
(2) An organ of state contemplated in sub-regulation (1) must, unless the Minister of Finance has directed otherwise, only apply a preferential procurement system which is in accordance with the Act and these regulations.

The Treasury note (R 1027, 7 December 2011) exempts schedule 2 and 3 entities from sticking to the hard rules of the PPPFA for another year; which includes the application of the 80/20 and 901/10 rules.  What isn't very clear is whether Treasury Practice note SCM2 of 2006 which outlaw set-asides is not applicable to those entities that have been exempt by R 1027.  I think that Eskom is still precluded from practising set-asides because they are still subject to the PPPFA, albeit in less strict a format.  I will concede that the water  here is a bit murky.

 

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