Black-owned car workshops not getting their due from govt tender - industry body

The Money Show interviews HDI AAAF chairperson, Sello Mosai.

Black-owned businesses in the automotive aftermarket sector are not getting their due in terms of the RT46 government fleet management tender, says an industry body.

There's a risk to more than 162 000 jobs due mainly to the management of this tender, warns Sello Mosai. He is chairperson of the HDI (HIstorically Disadvantaged Individuals) Automotive Aftermarket Association Forum or HDI AAAF.

The RT46 Government Tender is administered by big players WesBank, NedFleet, and Fleet Africa, overseeing a five-year contract which commenced on 1 April 2021.

It includes comprehensive vehicle fleet management services necessitated by various government departments, covering essential operations like police cars and ambulances, says Mosai.

He tells Motheo Khoaripe that it's a tender seeking to make sure that state-owned vehicles are on the road to ensure service delivery, and also one to ensure employment is created.

"... to see that transformation in the automotive sector at least gets kickstarted.  For the past 28 years of the existence of this contract having been managed by all these companies, this has not been achieved."

"For 2020/21 the tender has set aside about 90% of the work to be given to the historically disadvantaged, which comprises SSMEs. .. which are basically the biggest employers in the country.... but that 90% was never realised."

Sello Mosai, Chair - HDI Automotive Aftermarket Association Forum

Mosai says the Association has engaged with Wesbank, along with National Treasury and the Department of Transport about this, but not much has been achieved.

It is inviting all affected black-owned businesses to join its fight to ensure that 'at least 80% percent of government or private work is awarded to black-owned SMMEs in line with the population ratio'.

For more detail, listen to the interview audio at the top of the article