The Mercury

IMF cuts SA growth to 0.7%

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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.

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 ??  ?? THE INTERNATIO­NAL Monetary Fund (IMF) and World Bank Group are holding their annual meetings in Washington, US. In its latest World Economic Outlook, the IMF cut South Africa’s economic growth forecast for this year from the previous 1 percent to 0.7...
THE INTERNATIO­NAL Monetary Fund (IMF) and World Bank Group are holding their annual meetings in Washington, US. In its latest World Economic Outlook, the IMF cut South Africa’s economic growth forecast for this year from the previous 1 percent to 0.7...

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