Black empowerment groups call for change to preferential procurement law

| 0 Comments

 

PROC LAW.jpgLobbying organisations promoting black empowerment are calling for the Preferential Procurement Policy Framework Act (PPPFA) to be repealed because it places too much emphasis on price.


The Progressive Professionals Forum (PPF), which lobbies to address socio-economic disparities and promote broad-based black economic empowerment (B-BBEE), says the law prioritises competitiveness and cost-effectiveness.

 

The PPPFA stipulates that government organisations allocate points when putting contracts out to tender in relation to how functional they are, their price and how they achieve the goals of the Reconstruction Development Programme (RDP) – the government’s socio-economic policy framework aimed at redressing poverty and inequalities in public services.


The ‘preference point system’ states that contracts worth less than R1-million can receive up to 80 points based on price and functionality and 20 points based on RDP goals. Contracts over R1-million will be allocated 90 points for price and functionality and 10 points for RDP goals.


“The PPPFA as it currently stands awards a whopping 80 per cent or 90 per cent of points to the lowest price from among the bidders and a mere 20 per cent or 10 per cent to recognise black empowerment,” said Mzwanele Manyi, president of PPF.


“PPPFA has taken away the reason for companies to embrace transformation because indeed why would monopoly capital be bothered with B-BBEE if they can get up to 90 per cent of points purely on lower price?" said Manyi.


Manyi said that the Act is also the “primary reason for the continued existence of oligopolies”, whose size and scale make it impossible for other companies to compete.


“Big corporates also enjoy 90-day trading terms, unlike the emerging entities that must pay cash with borrowed funds, which also would have come at a high [interest] cost because of the perceived risk of new entities,” he added.


Meanwhile, the Black Business Council has also called for the PPPFA to be ditched because its provisions conflict with the Broad-Based Black Economic Empowerment Act 2003, which is aimed at reversing the effects of Apartheid and distributing wealth among disadvantaged people.


Supply Management
 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Operations Manager

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Our client within the FMCG industry with a ...More

Warehouse and Distribution Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
An exciting opportunity awaits for a Warehouse and ...More

Demand Planner

  • <500 000 Permanent
Get an opportunity to be part of one ...More

Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
An opportunity for a seasoned Procurement Manager, who ...More

Industrial Engineer

  • >500 000 Gauteng Industrial Engineer Permanent Procurement Consultant
An exciting opportunity that offers extensive exposure on ...More

Deputy Director: Procurement

  • >500 000 Contract Procurement Management Procurement Officer / Specialist Western Cape
Department of Economic Development and Tourism:Procurement Specialist, Ref ...More

DEMAND PLANNING MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Projects / Category Management
(Total Cost to Company R750k – R900K) excluding ...More

GLOBAL SUPPLIER PERFORMANCE MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Salary: R 1.3M –R1.5M, dependent on level of ...More

GLOBAL CATEGORY MANAGER

  • >500 000 Contract Gauteng Procurement Consultant Projects / Category Management
Total Cost to Company R1mil – R1.2mil excluding ...More

Project Manager

  • >500 000 Contract Procurement Management Projects / Category Management Western Cape
 Description:A well-known retail organization is looking for an ...More

PROCUREMENT ANALYST

  • >500 000 Analyst Gauteng Permanent Procurement Management
Description:A leading infrastructure development group with strong presence ...More

Commodity Manager: Fuels and Lubes

  • Commodities Gauteng Permanent Projects / Category Management
 Ensuring continuity of supply in line with business ...More

Senior Facilities Manager

  • >500 000 Commodities Gauteng Operations, Planning & Inventory Permanent
(Total Cost to Company R800K – R900K) Johannesburg Our ...More

ENGINEERING STANDARDS MANAGER

  • <500 000 >500 000 Gauteng Industrial Engineer Permanent Procurement Management
(Total Cost to Company R350K – R550K) JOHANNESBURGYou ...More

Supply Chain Analyst

  • <500 000 >500 000 Permanent Procurement Officer / Specialist Supply Chain Western Cape
(Total Cost to Company R350K – R550K)  SOUTHERN ...More

Security Manager

  • <500 000 >500 000 Gauteng Permanent Projects / Category Management Strategic Sourcing
(Total Cost to Company R350K – R550K) JOHANNESBURG This ...More

Demand Planner

  • <500 000 >500 000 Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R450k – R550k, dependent ...More

Procurement Specialist-Randburg

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
(Total Cost to Company R700k – R800k including ...More

Solutions Architect

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
(Total Cost to Company R1.3Mil – R1.1Mil including ...More

MANUFACTURING MANAGER - OLIFANTSFONTEIN

  • >500 000 Gauteng Permanent Projects / Category Management
(Total Cost to Company R850k – R950K including ...More