When BEE matters bigger than carrier shipping

The place in executive parlance does a ‘round’ to departments asking them to preserve up all (BEE) tenders after 16 February in abeyance, translate as a non-binding ‘advisory’? Billions of rands of tenders are genuinely iced – leading to shortfalls of critically compulsory scientific and firefighting instruments in several provinces – after the Treasury DG, Dondo Mogajane, despatched out the round, which he now legally concedes is non-binding on recipients. The context is the Constitutional Court struck down the Preferential Procurement Coverage Framework Act that allowed organs of order to disqualify bidders from a soft if they had been no longer 100% gloomy owned. Which methodology that from 16 February, it’s aid to the earlier dispensation, i.e. that a bidder’s BEE spot would make up some section of their final soft ranking, fundamentally 10% or 20%. But freezing them and issuing no new tenders? Is the ANC’s fundamental fair carrier shipping or BEE? Time to make up its tips or lose energy. Article republished courtesy of MyBroadband. – Chris Bateman

Treasury bringing South Africa to standstill after BEE loss in courtroom

By Workers Creator

Health facility doctors may well soon be with out an crucial instruments and firefighters with out protective instruments as a result of an ‘advisory’ issued by Nationwide Treasury this week following its Constitutional Court loss over BEE procurement tips.

In mid-February, Sakeliga acknowledged it won a fundamental victory in its campaign towards Sunless Financial Empowerment (BEE) policies. The Constitutional Court dominated that BEE guidelines issued by vulnerable finance minister Pravin Gordhan in 2017 had been invalid and unconstitutional.

These guidelines, issued below the Preferential Procurement Coverage Framework Act, allowed organs of order to disqualify bidders from a soft if they had been no longer 100% gloomy-owned. Previously, all bids submitted consistent with soft specifications may well be regarded as, and the bidder’s BEE spot would make up some section of their final ranking, fundamentally 10% or 20%.

Following the Constitutional Court ruling, Nationwide Treasury director-total Dondo Mogajane issued a round to executive departments pointing out that:

Tenders marketed earlier than 16 February 2022 be finalised when it comes to the Procurement Regulations struck down by the ConCourt.
Tenders marketed on or after 16 February 2022 be held in abeyance.
No new tenders be marketed.

Sakeliga CEO Piet le Roux decried the round as an unlawful instruction.

Nonetheless, on Thursday, Le Roux printed that Mogajane had conceded that the round became once no longer binding consistent with their questions.

Irrespective of Mogajane’s assurance that the round became once merely advisory, municipal governments in Cape Town and Johannesburg acknowledged it had positioned them in a advanced living.

Afrikaans-language newspaper Rapport reported that in Cape Town, tenders to the value of plenty of of hundreds and hundreds are standing mild. Quoting Cape Town mayor Geordin Hill-Lewis, the paper wrote that the metropolitan municipality had hoped to end a soft for an crucial scientific instruments by 22 March. It involves new blood stress displays, blood glucose sensors, stethoscopes, and diversified scientific devices for the metropolis’s clinics.

Another instance of a crucial soft caught in limbo is one for weatherproof jackets and fire-retardant clothing for the metropolis’s firefighters.

Johannesburg spokesperson Nthatisi Modingoane urged Rapport that tenders of R1.3 billion are standing mild in South Africa’s financial hub.

Modingoane warned that Treasury’s embargo would possess a huge affect on carrier shipping, the metropolis’s procurement conception for the 365 days, and their integrated pattern conception aims.

Hill-Lewis and Modingoane also warned that numerous contracts which may well be renewed month-to-month would in a roundabout design prefer to be cancelled if Treasury’s moratorium dragged on.

In the Western Cape, provincial finance minister David Maynier acknowledged Mogajane’s round would straight away end 86 tenders to the value of R1.85 billion deliberate for March 2022.

Maynier acknowledged that he has written to national finance minister Enoch Godongwana to seek recordsdata from that Treasury urgently withdraw the expose. To this level, Mogajane has refused to withdraw the round and as an different wrote to Sakeliga to insist that the expose became once purely an “advisory file”. Sakeliga warned that Nationwide Treasury became once constructing a semblance of lawfulness for the endured application of BEE-essentially essentially based pre-disqualification of tenders.

“This whereas the Constitutional Court now has at closing confirmed the invalidity of the BEE-essentially essentially based pre-disqualification when it comes to the 2017 guidelines of the Minister of Finance,” Sakeliga’s Le Roux acknowledged. “This day’s letter by the Director-Widespread to Sakeliga has eliminated the need for pressing litigation and methodology that executive establishments may well now proceed with procurement, with out reference to Nationwide Treasury’s explore of the judgment in favour of Sakeliga handed down by the Constitutional Court on 16 February.”

Sakeliga acknowledged it is on standby to resort to litigation again ought to mild Nationwide Treasury or diversified executive establishments are trying to sidestep the Constitutional Court’s judgment.

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