14 June 2011 | Lindsay Clark
The South African government has changed the rules
governing how buyers assess black suppliers in order to meet contracting
Purchasers will now have to consider more than
whether or not the supplier has black ownership. Instead vendors will be
measured across a range of criteria, including their own employment and
procurement policies. The ranking on the ensuing scorecard will be taken into
account when vendors bid on government deals. The switch brings public
purchasing into line with the government’s overall policy of broad-based black
economic empowerment (BBBEE).
The application of the rules has also been
extended to buyers working at state-owned enterprises, including energy
supplier Eskom, telecoms provider Telkom and transport operator Transnet.
Critics of the current rating system had argued
that basing public procurement decisions solely on black ownership caused
“fronting”, a scam where a supplier may employ a black figurehead to appeal to
purchasing decision makers.
new Preferential Procurement Regulations
come into force from 7 December 2011 to allow enterprises to be rated on a BBBEE
will also allow time to train all supply chain practitioners on the
implementation of the revised regulations,” the National Treasury
said in a statement.