Question NW1209 to the Minister of Public Enterprises
29 April 2022 - NW1209
Maotwe, Ms OMC to ask the Minister of Public Enterprises
Whether Transnet has taken a decision to issue tenders without preferential criteria such as broad-based black economic empowerment, exempted micro-enterprise and/or qualifying small enterprise and minimum 30% sub-contracting requirements; if not, why not, in each case; if so, what is the (a) reason for this and (b) implication of the decision on transformation?
Reply:
According to the information received from Transnet
a) Pursuant to section 217(2) of the Constitution, the Transnet SOC Ltd (Transnet) Board of Directors has approved an addendum to the company’s Supply Chain Management (SCM) Policy – effective 25 March 2022 - to allow Transnet to include specific provisions for preferential procurement in its procurement processes.
The Board of Directors resolved to continue applying the 80/20 and 90/10 preference point system provided for in section 2(1) of the Preferential Procurement Policy Framework Act 5 of 2000 (PPPFA) – in order to promote preferential procurement in its processes, demonstrating the company’s continued commitment to transformation and empowerment.
The Board has determined monetary thresholds for the application of the 80/20 and 90/10 preference point systems that will continue to provide certainty to bidders and Transnet’s procurement processes until new Preferential Procurement Regulations are promulgated or the Constitutional Court judgment is clarified.
This approach aligns with the Constitutional Court ruling that the policies of organs of state should take charge of driving transformation and preference in procurement to give effect to section 217(2) of the Constitution.
b) Transnet’s transformational objectives will be achieved. Transnet’s amended policies will ensure that the SOC continue to provide certainty to bidders and Transnet’s procurement processes until new Preferential Procurement Regulations are promulgated or the Constitutional Court judgment is clarified.