ANC rejects DA’s proposed procurement bill seeking to replace B-BBEE

The African National Congress (ANC) has rejected the Democratic Alliance (DA)’s proposed Public Procurement Amendment Bill, which seeks to replace Broad-Based Black Economic Empowerment (B-BBEE).

The DA unveiled the bill at a media briefing on Monday, saying B-BBEE has not worked, only benefited a few connected people, and must be replaced with a new empowerment policy.

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The BEE Act was signed into law in 2003, with the aim of addressing the country’s racial economic inequalities caused by apartheid.

Through the policy, companies are given incentives and preferential treatment, especially for government contracts, if they contribute to the empowerment of historically disadvantaged groups like black, coloured and Indian people.

ANC national spokesperson, Mahlengi Bhengu, said the party would not be supporting its Government of National Unity (GNU) partner on their new bill.

"Any other platform where dialogue must take place, the ANC is always willing to engage. All I can stress, though, is there will not be a day where BEE is scrapped as a legislation. Where there are amendments, I am certain that, like any other piece of legislation, amendments are acceptable as long as they do not deviate from the substance of that legislation."

Meanwhile, the DA’s head of policy, Mathew Cuthbert, said it would be in the interest of all the GNU partners to support its bill.

"There is definitely some realisation, I think even within the ANC itself, that the way in which transformation policy is being implemented in this country over the last 20 years or so has failed to attract the kind of investments into the key sectors we need in order to grow the economy and create jobs."