IMF cuts SA growth to 0.7%
in the mix Mfebe declined to comment on the new policy issued by the National Roads Agency (Sanral).
The draft policy stipulates that on capital projects Sanral will only do business with companies that are at least 51 percent black-owned and with a minimum broad based black economic empowerment Level 2 rating while a maximum of 15 tenders a year would be issued to a single company and contractors would be required to make use of Sanral-approved sub-contractors.
Sanral proposes the same provisions for road maintenance projects to ensure the broad-based participation of local companies and communities and ensure that special attention is given to the procurement of road safety material from black suppliers.
The equity ownership level specified in Sanral’s draft policy is not aligned with the agreement reached between the government and seven listed construction companies in terms of the Voluntary Rebuilding Programme (VRP) agreement.
The VRP agreement includes a collective payment by the seven companies of R1.5 billion over 12 years to a socio-economic development trust, and commits to further transformation initiatives, including either becoming “fully transformed” with at least 40 percent of equity in the hands of black South Africans or a commitment to significant mentoring initiatives for up to 3 emerging black-owned enterprises.
Mfebe said Sanral’s draft policy had been referred to Safcec’s contractual affairs transformation committee for a proper response. He said Safcec would apply its mind to the draft. “We would not like to be impulsive about it,” he said.
Mfebe confirmed that Sacfec would be engaging with the chief procurement officer at National Treasury and the new chief executive of Sanral on these issues. “What is very glaring is that there are are various procurement standards in various state institutions, which is cause for concern,” he said.