Question NW1688 to the Minister of Agriculture, Land Reform and Rural Development
19 June 2023 - NW1688
Bagraim, Mr M to ask the Minister of Agriculture, Land Reform and Rural Development
Whether she will furnish Mr M Bagraim 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:
(a),(b)(i),(ii),(iii),(iv)(aa),(bb) Please refer to the table below.
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(i) SMME |
(ii) Cooperative |
(iii) Township Enterprises |
(iv) Rural Enterprises |
|
(a) Department of Agriculture, Land Reform and Rural Development (DALRRD) |
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(aa) 2021/22 Financial Year (FY) |
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0% The Department did not set procurement allocations (targets). |
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(bb) Since 1 April 2023 |
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0%: The 2017 Preferential Procurement Regulations (including Regulation 4: prequalification criteria/ set-aside) were successfully challenged in court and replaced by the Preferential Procurement Regulation 2022 which is currently in force. Effective 16 January 2022 Regulation 4 (Pre-qualification criteria) of the Preferential Procurement Regulations 2017 is no longer applicable. In view of the above, since April 2023 the Department does not apply the pre-qualification criteria/set-aside in line with the 2022 Regulations issued by National Treasury. |
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(i) SMME |
(ii) Cooperative |
(iii) Township Enterprises |
(iv) Rural Enterprises |
|
(b) Deeds Registration Trading Account |
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|
(aa) 2021/22 FY |
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0% The entity did not set procurement allocations (targets). |
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(bb) Since 1 April 2023 |
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|
0%: The 2017 Preferential Procurement Regulations (including Regulation 4: prequalification criteria/ set-aside) were successfully challenged in court and replaced by the Preferential Procurement Regulation 2022 which is currently in force. Effective 16 January 2022 Regulation 4 (Pre-qualification criteria) of the Preferential Procurement Regulations 2017 is no longer applicable. In view of the above, since April 2023 the Department does not apply the pre-qualification criteria/set-aside in line with the 2022 Regulations issued by National Treasury. |
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|
(b) Commission on Restitution of Land Rights |
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|
(aa) 2021/22 FY |
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|
89% |
0% |
1.27% |
76% |
|
(bb) Since 1 April 2023 |
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|
70.69% |
0% |
0% |
1.21% |
|
(b) Office of the Valuer General |
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|
(aa) 2021/22 FY |
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|
84.77% |
0% |
0% |
0% |
|
(bb) Since 1 April 2023 |
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|
16.5% |
0% |
0% |
0% |
|
(b) Ingonyama Trust Board (ITB) |
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(aa) 2021/22 FY |
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0% ITB did not set procurement allocation targets. |
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|
(bb) Since 1 April 2023 |
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|
0%: The 2017 Preferential Procurement Regulations (including Regulation 4: prequalification criteria/ set-aside) were successfully challenged in court and replaced by the Preferential Procurement Regulation 2022 which is currently in force. Effective 16 January 2022 Regulation 4 (Pre-qualification criteria) of the Preferential Procurement Regulations 2017 is no longer applicable. In view of the above, since April 2023 the Department does not apply the pre-qualification criteria/set-aside in line with the 2022 Regulations issued by National Treasury. |
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|
(b) National Agricultural Marketing Council (NAMC) |
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|
(aa) 2021/22 FY |
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|
0% NAMC did not set procurement allocation (targets). |
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|
(bb) Since 1 April 2023 |
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|
0%: The 2017 Preferential Procurement Regulations (including Regulation 4: prequalification criteria/ set-aside) were successfully challenged in court and replaced by the Preferential Procurement Regulation 2022 which is currently in force. Effective 16 January 2022 Regulation 4 (Pre-qualification criteria) of the Preferential Procurement Regulations 2017 is no longer applicable. In view of the above, since April 2023 the Department does not apply the pre-qualification criteria/set-aside in line with the 2022 Regulations issued by National Treasury. |
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(b) Agricultural Research Council (ARC) |
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(aa) 2021/22 FY |
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0%: ARC did not set procurement allocation targets. |
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(bb) Since 1 April 2023 |
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|
0%: The new Preferential Procurement Regulations 2022 that came into effect from 16 January 2023 compels government institutions to evaluate bids based on specific Reconstruction and Development Programme (RDP) objectives. Effective 16 January 2022 Regulation 4 (Pre-qualification criteria) of the Preferential Procurement Regulations 2017 is no longer applicable. |
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(b) Perishable Products Export Control Board (PPECB) |
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(aa) 2021/22 FY |
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|
30% |
0% |
0% |
0% |
|
(bb) Since 1 April 2023 |
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|
20% |
0% |
0% |
0% |
|
(b) Onderstepoort Biological Product (OBP) |
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(aa) 2022/23 FY |
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OBP currently only tracks 2 parameters with respect to procurement and based on the BBBEE Framework, i.e., (i) Black owned companies; and (ii) woman owned companies. OBP only approved the enterprise supplier development policy in Quarter-4 of 2022/2023. For the financial year 2022/2023, 45% Black owned businesses and 15% women owned businesses.” |
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(bb) Since 1 April 2023 |
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0%: Effective 16 January 2022 Regulation 4 (Pre-qualification criteria) of the Preferential Procurement Regulations 2017 is no longer applicable and was replaced by the Preferential Procurement Regulation 2022 which is currently in force. In view of the above, since April 2023 the OBP does not apply the pre-qualification criteria/set-aside in line with the 2022 Regulations issued by National Treasury. |