New 30% tender compliance

THE PUBLIC Works Department has introduced a policy that compels companies awarded tenders worth more than R30 million to subcontract 30% of the contract value.

Public Works Minister Nathi Nhleko revealed this when responding to a parliamentary question about KwaZuluNatal’s Delangokubona Business Forum, which is accused of using violence to force its way into public and private contractor tenders.

“The department has aligned its policies with the new National Treasury regulations on local beneficiation. In this regard the Department of Public Works has issued a directive signed by the director-general on May 4, 2017,” Nhleko said.

He added that the new policy allowed subcontracting as a condition of tenders above R30m, with bidders required to subcontract a minimum of 30% of the contract value to designated groups where possible.

“All tenders that were to be issued after this directive came into effect are aligned to our new preferential policy.

“This new policy dispensation will enhance the process of settling annual preferential procurement goals, monitoring, evaluation and reporting by all relevant business units of the Department of Public Works.”

Nhleko added that all projects awarded after April 1 would be subjected to compliance to the 30% subcontracting policy.

“This policy will insist that 30% is set aside for local beneficiation and participation. The eThekwini municipality is also working on a policy to address such concerns from the various social groupings or business forums in and around eThekwini.”

Nhleko also denounced what he deemed intimidation tactics used by Delangokubona to demand 30% awarded tenders be handed to them.