Assessing the impact of the Preferential Procurement Policy Framework Act (PPPFA) on local government: A case study of Midvaal Local Municipality

Abstract

The study is an exploratory research endeavour focused on investigating the challenges faced by municipal supply chain practitioners during the implementation of the Preferential Procurement Policy Framework Act (PPPFA) and its associated regulations. The PPPFA serves as a fundamental pillar for state entities to operationalize their preferential procurement policies, using a system of preferential points. The effective implementation of the PPPFA within municipal supply chains is a matter of paramount concern. However, the potential for misinterpretation or misapplication of the PPPFA poses a significant risk, capable of impeding the intended transformation and perpetuating societal disparities. The study adopted a qualitative approach, underpinned by the interpretivist paradigm, to delve into the subject matter. To this end, data was collected through semi-structured interviews involving a sample of eight (8) participants, who were selected using a non-probability sampling method, specifically employing the purposive sampling technique. The gathered insights were subjected to an inductive thematic analysis, and the findings were subsequently discussed based on the emerging themes. The study ascertained that the PPPFA is fundamentally perceived as a legislative instrument designed to regulate and guide public procurement and tendering procedures, placing a strong emphasis on the principles of fairness, equity, and transparency. The accomplishment of PPPFA implementation hinges not only on stringent regulatory compliance, but also on a myriad of other factors, encompassing aspects like stakeholder engagement, addressing historical imbalances, and the capacity to adapt to evolving procurement processes. Also, the study brought to light emerging challenges that emphasize the potential impact of political interference, policy-related issues, and resistance to the successful execution of the PPPFA. Moreover, in examining the role and impact of PPPFA implementation on the quality-of-service delivery, the study concluded that the execution of the PPPFA exerts a substantial influence on the quality of goods and services provided to the municipality. Concerning the enhancement of the effectiveness and efficiency of PPPFA implementation in the municipality, the study determined that there is a fundamental need for the alignment of the municipality's preferential procurement policy with the objectives outlined in the PPPFA. While the policy may effectively address certain areas, such as locality and Black Economic Empowerment (BEE), it is imperative to ensure that all pertinent objectives, including those related to historically disadvantaged groups, receive adequate attention and consideration