Draft regulations have the "potential to legalise corruption"

| 0 Comments

 

ReformsCorruption.jpg“The new draft regulations, if they are accepted, will legalise wholesale corruption at an even grander scale than we are currently witnessing,” said Helen Zille, Democratic Alliance (DA) premier of the Western Cape Government.


Speaking on amendments to Preferential Procurement Regulations put forward by government, the premier said that amendments to the procurement law “will cause the collapse of the South African economy”.


The amendments propose changing the weighting applied to tender evaluation: tenders up to R10-million will be evaluated 50% on price and 50% on non-price, including a firm’s broad-based black economic empowerment (B-BBEE) score or other ownership factors.


The weighting on tenders above R10-million will change from 90/10 to 80/20.


According to Zille, what it means is that for certain categories of purchases (tenders under R10-million) we could be paying almost double for goods and services on the basis of the BBBEE points awarded.


“Firms that have the highest rating will get enough ‘bonus’ points to enable them to double the best market price of a firm with no rating, and still get the contract. There is a sliding scale between firms with no BBBEE status and those with ‘full’ status. If they attain only half the BBBEE status, we will pay 50% more.


“This system will cause the collapse of the South African economy. It will not result in broad-based economic inclusion. It will re-enrich those who are already entrenched; it will not lead to economic growth. On the contrary, it will destroy growth and jobs because it creates perverse incentives, rewarding inefficiency and uncompetitive pricing. And as government’s capacity to procure goods and services shrinks, firms will go out of business. People will lose jobs, while the preselected few flourish,” added Zille.


Anthea Jeffrey, head of policy research at the Institute of Race Relations, was quoted saying that the proposed amendments are “contrary to the constitution”.


The DA said the proposed amendments were “a major threat to procurement, already viewed with scepticism by the public”. It is was reported that shadow minister of trade and industry Geordin Hill-Lewis has written to Finance Minister Nhlanhla Nene requesting the withdrawal amendments.


Adapted from a report on SupplyManagement.

 

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

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Salary: R 600 000 - R 650 000 ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
R600 000 - R700 000 per annum Location: ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
R850 000 - R1 000 000 per annumLocation: ...More

Commodity Manager

  • <500 000 Commodities Permanent Procurement Management Western Cape
R700 000 - R850 000 per annum,Location: Western ...More

National Supply Chain Manager

  • <500 000 Across borders Permanent Procurement Management Supply Chain
R750 000 - R1 000 000 per annum,Location: ...More

Industrial Engineer

  • <500 000 >500 000 Industrial Engineer Operations, Planning & Inventory Permanent Western Cape
R450 000- R500 000 CTC per annum,Location: Western ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
Category: Procurement,Salary: R700 000 - R800 000 per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Category: Consulting,Salary: R750 000 - R800 000 CTC ...More

Logistics Manager

  • <500 000 Across borders Logistics & Warehousing Permanent Procurement Management
Category: Logistics,Salary: R900 000 - R1 000 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Area of Specialisation: Planning,Salary: R500 000 - R650 ...More

Industrial Engineer

  • <500 000 Analyst Gauteng Industrial Engineer Permanent
R800 000 - R850 000 CTC per annum.Location: ...More

Security Manager

  • <500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
(Total Cost to Company R350K - R550K).This is ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R650k - R750k) excluding

Commodity Manager Raw Materials

  • <500 000 Commodities Gauteng Permanent Strategic Sourcing
(Total Cost to Company R980k - R800k) excluding ...More

Commodity Manager Logistics

  • <500 000 Commodities Gauteng Logistics & Warehousing Permanent
(Total Cost to Company R1mil - R900k).Industry: Engineering

Procurement Consultant

  • <500 000 Gauteng Permanent Procurement Consultant Procurement Management
(Total Cost To Company 550K - 450K) includes ...More

Commodity Manager MRO &CAPEX

  • <500 000 Commodities Gauteng Permanent Projects / Category Management
(Total Cost To Company 900k - 750k) includes ...More