So says David Pincus in Sunday's Business Times (Tenders section page 11). The report tells of a Coega tender in the Eastern Cape that was awarded to a BEE compliant consortium. The only problem was that the consortium's bid was R8 million more than another bidder who was deemed not to be empowered enough.
The jilted bidder took Coega to court and work on the contract has been halted. If you want to read on the war of words take a look at http://www.sundaytimes.co.za/Articles/TarkArticle.aspx?ID=2168772. Pincus very significantly asks the question "Do those who call for tenders and insist on BEE compliance regard compliance as more important than value for money? And if that's the case, what is it costing taxpayers?"
The Preferential Procurement Policy Framework Act and its accompanying regulations make it very clear that pricing and quality are still the most important considerations in awarding government tenders. I can understand that government wants to support BEE companies (and their definition of BEE is excruciatingly narrow),but not at the expense of the taxpayer. I'll watch this closely.
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