Question NW1691 to the Minister of Cooperative Governance and Traditional Affairs

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05 June 2023 - NW1691

Profile picture: Chetty, Mr M

Chetty, Mr M to ask the Minister of Cooperative Governance and Traditional Affairs

Whether she will furnish Mr M Chetty with a comprehensive breakdown of the procurement allocation of (a) her department and (b) every entity reporting to her in terms of the percentages allocated to (i) small-, medium- and micro-enterprises, (ii) cooperatives, (iii) township enterprises and (iv) rural enterprises with a view to evaluating the effectiveness of the set-aside policy of the Government in fostering an inclusive and diverse economic landscape (details furnished) in the (aa) 2021-22 financial year and (bb) since 1 April 2023?

Reply:

The departmental of Cooperative Governance did not have a specific procurement any specific procurement goal and specific allocation for small, medium and micro-enterprises, cooperatives, township enterprises and rural enterprises as the process then was aligned to Preferential Procurement Regulations of 2017.

(aa) 2021/22

The Department has however spent R124, 700 030.00 (R124,7.million) on BBBEE scorecard as per Preferential Procurement Regulations of 2017.

In terms of the BBBEE scorecard:

  • 76% was spent on Black People amounting to R110, 076, 246.00
  • 37% was spent on Black Women amounting to R11, 862, 775.00
  • 24% was spent on Youth amounting to R2, 761, 009.00

(bb) 01 April 2023

For the month of April 2023, the department of Cooperative Governance spent R706 601,50 on specific goals as per the Preferential Procurement Regulations of 2022.

In terms of the specific goals:

  • 80% was spent on Black People amounting to R619 689
  • 20% was spent on Black Women amounting to R77 222.50
  • 40% was spent on Youth amounting to R9 690.

The Department is committed towards economic growth of the country by empowering the Small Medium and Macro Enterprises (SMMEs) particularly in rural areas and township. and the department has directed its preference in terms of specific goals to Blacks, Women, Youth and business owned by people living with disabilities as guided by the Preferential Procurement Regulations, 2022.

Our records for period under review (2023/24 FY) reveal that the new score card is in line with the Prefential Procorement Regulations 2022.

End.

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