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Author Topic: Has Treasury been captured by the black business lobby? Article.  (Read 2843 times)

Moonraker

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Has Treasury been captured by the black business lobby? Article.
« on: July 20, 2016, 06:56:42 pm »
Unbelievable - nowhere else, only here. Oh to be one of the priveleged masses.

Has Treasury been captured by the black business lobby?

Extract:-


Draft preferential procurement regulations recently gazetted by the National Treasury suggest that Pravin Gordhan’s department has finally been captured by the black business lobby.

The Treasury has long resisted demands for increased preferential procurement, saying this leads to inflated prices and leaves less revenue available to meet the needs of the poor. But now its regulations (published for comment by 15th July) propose major increases in BEE procurement in various ways.

Under the Preferential Procurement Policy Framework Act of 2 000 (the Act), a 90:10 formula currently applies to tenders worth more R1m.

According to this formula, 90 points are allocated on price and 10 points for BEE status, which means a BEE firm can charge 10% more and still get the contract. Under the current rules, a 80:20 formula applies to contracts below R1m, so allowing BEE firms to charge 20% more and still win the tender.


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gcr

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Re: Has Treasury been captured by the black business lobby? Article.
« Reply #1 on: July 20, 2016, 10:16:57 pm »
One would have thought that the governments experience with the building of RDP houses would have taught them a lesson on dishing out housing projects to BEE companies. Hope this time around the government holds back 20% of contract amount - payment subject to validation that the contract has been completed in terms of scope and quality assurance checks and balances
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jaDEB

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Re: Has Treasury been captured by the black business lobby? Article.
« Reply #2 on: July 21, 2016, 07:41:16 am »
According to this formula, 90 points are allocated on price and 10 points for BEE status, which means a BEE firm can charge 10% more and still get the contract. Under the current rules, a 80:20 formula applies to contracts below R1m, so allowing BEE firms to charge 20% more and still win the tender.

I am more and more in favour of the above, as the Chinese is F%$#ing us up, we are loosing more and more contracts which is getting placed in India / China due to the low prices.

But I do not agree with the statement above, the 10 points does not mean your price can be 10% higher. Some tenders have 70 points for Technical compliance, does that mean my price can be 70% higher, no. WHat piss%s me off, is they ask you for your BEE certificate , and then let you know they placed it in China, why the %$# :wall: did u ask me for my %$# :wall: BEE certificate if it means nothing.
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jaDEB

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