New Treasury regulation spells the end of compulsory BEE in state procurement

Loading player...
Following a five-year court battle, Sakeliga is welcoming a new Treasury regulation for public procurement that completely omits BEE and local content requirements when tendering to do business with the state. Sakeliga CEO Piet le Roux says it marks the end of "compulsory BEE and local content requirements in state procurement. That's a very harmful arm of the octopus [state] that has now been cut off." In 2017 Sakeliga went to court to challenge regulations put out by then Finance Minister Pravin Gordhan making it possible for state entities to preemptively exclude bidders based on their BEE or local content status. In February this year, the ConCourt ultimately found the minister had no powers to prescribe to entities of the state what their preferential procurement policies should be. That discretion resides with entities themselves. But, while Treasury may no longer mandate, prescriptively, that BEE or local content requirements must be taken into account in a tender, a municipality or SOE could still insist on it - as long as the tender process doesn't fall foul of section 217 (1) of the Constitution. That particular section states: "When an organ of state in the national, provincial or local sphere of government, or any other institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective." Learn more about your ad choices. Visit megaphone.fm/adchoices
8 Nov 2022 7AM English South Africa Investing · Business News

Other recent episodes

BNC#8 Piet Viljoen - Survive first, profit later: Why history beats prediction in investing

Piet dismantles the myth of market prediction, arguing that success comes from judgment, discipline, and respect for history. Drawing on timeless lessons, he reveals why human behaviour drives cycles, why diversification and liquidity matter, and why survival beats brilliance. In a world obsessed with forecasts, this approach focuses on resilience,…
20 Mar 5AM 27 min

BNC#8 truth over hype: Magnus on investing, independence, and winning in a tough economy

Magnus built his career on questioning narratives and pursuing truth - first in journalism, then in financial advice. From navigating market volatility to championing global investing, his journey reflects resilience and independence. In a challenging South African economy, his message is clear: think critically, stay global, and never compromise on…
19 Mar 8AM 23 min