BBC is disappointed that Minister of Finance is abdicating his responsibility regarding procurement regulations

7 November 2022

The Black Business Council (BBC) is disappointed that the Minister of Finance, Mr Enoch Godongwana,

is abdicating his constitutional responsibility regarding the Preferential Procurement Policy Framework Act, 2000 (PPPFA): Preferential Procurement Regulations 2022 published in the Government Gazette of 04 November 2022. In the regulations, the Minister completely removed localisation and Broad-Based Black Empowerment (B-BBEE) requirements and replaced them with what is called specific goals.

"Specific Goals" means specific goals as contemplated in section 2(1)(d) of the PPPFA which may include contracting with persons, or categories of persons, historically disadvantaged by unfair discrimination on the basis of race, gender and disability including the implementation of programmes of the Reconstruction and Development Programme as published in Government Gazette No. 16085 dated 23 November 1994.

This means that the already low 20 or 10% points allocated for economic transformation when evaluating government tenders are done away with.

Section 217 of the Constitution cannot be negated or relegated to a mere provision without an enabling legislation for economic redress.

The BBC is of the view that Minister is passing the buck by leaving everything to the organs of state to determine their own transformation targets with the new procurement regulations as most state organs will choose to do nothing on economic transformation and localisation.

The BBC calls on all progressive South Africans and formations to put all their efforts into the discussions on the Public Procurement Bill currently taking place at Nedlac. The bill, which seeks to repeal the current PPPFA, fails categorically entrench to industrialisation, localisation and the inclusion of the previously and still currently disadvantaged people in the economy through set asides.

The 40% set aside for women that H.E. President Ramaphosa promised, for example, is not in the bill. BBC warns government that the majority of the people can't be perpetual spectators in the economic sphere of their own country and therefore calls the Minister to seriously consider withdrawing the bill in its current form to ensure that set asides are included.

Issued by Black Business Council, 7 November 2022