Speaking to the Black Business Council, which has signaled strong support for Zuma, South Africa’s president said that the Preferential Procurement Policy Framework Act will be changed “to continue the quest for a transformed economy”. More people must be brought into the net to benefit from government contracts, he said.
We've heard this before. Remember how seriously Dud took the doos's obiter remark about set-asides in his 2015 state of the nation (of no fixed) address? I think this is another platitude from the mouth of a moron who no-one likes nor respects (other than Hlaudi of course). As Jackie Cameron wrote
The president’s words will be music to the ears of the tenderpreneur brigade, though not so sweet to the small army of entrepreneurs who aren’t black but play a meaningful role in job creation and economic growth and are already doing their bit for BEE. An amended public procurement bill is set to be released for discussion next month and tabled in Parliament early next year.
I can't see this happening. Zuma lacks the political clout to do it. Perhaps he is prodding Treasury to see what their reaction will be. Perhaps he thinks that the useless and tailcoat-riding BBC will start lobbying to get rid of Pravin because he's not going to agree to this. Thinking about it, this is probably what Zuma is doing. The strategy now is to create huge dissatisfaction with Pravin, specifically amongst those who are not competent enough to provide services to the private sector and have settled for government work that worries neither about quality nor price.
Now he's attempting to placate the completely irrelevant jungle jim, who is threatening to go to court (yeah right) to get the PPPFA scrapped. He's saying the regulations that Treasury published earlier this year are going to be promulgated at the end of this year as an interim measure, and then they are going to change the Act (not repeal it jungle). Here are the words of the thickest human being next to Hlaudi.
In the past five years as part of advancing BBBEE procurement, government amended the Preferential Procurement Policy Framework Act or the PPPFA Regulations to provide for BEE preference points. We thought this would work and would make an impact. However, you pointed out that it does not work. We are now aware of the shortcomings. We agree that the preference points system prescribed in the PPPFA is rigid and is not responsive to government objectives.
Due to the shortcomings, the preferential procurement regulations have failed to substantially re-shape the skewed ownership and control of the South African economy. It is the intention of government to ultimately repeal the PPPFA and its associated regulations and introduce a more flexible preferential procurement framework that is responsive to government objectives.
In this regard, the Preferential Procurement Policy Framework Act will be repealed by the Public Procurement Act. The Public Procurement Bill is now going through the different government stakeholder engagement processes before it is tabled in Parliament. This is targeted for early 2017. I trust that the BBC has made its inputs to the National Treasury.
In the interim, government is to produce regulations that will improve the PPPFA to make them more responsive to the economic transformation imperatives.
One of the main changes contained in the proposed new Preferential Procurement Regulations is the introduction of a compulsory sub-contracting clause.
It will be compulsory to sub-contract a minimum of 30% of the value of the contract for all contracts above 30 million rand, to small and emerging enterprises owned by the women, youth, black people or persons with disability. The intention is to finalise the Preferential Procurement Regulations for approval during October 2016, and for these to be promulgated by 1 November 2016.
Will this actually materialise? Zuma is a lame duck, it won't happen.