Question NW365 to the Minister of Energy

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08 April 2016 - NW365

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Energy

With reference to President Jacob G Zuma’s undertaking in his State of the Nation Address delivered on 12 February 2015, that the Government will set aside 30% of appropriate categories of state procurement for purchasing from Small, Medium and Micro-sized Enterprises (SMMEs), co-operatives, as well as township and rural enterprises, what percentage of the total procurement of (a) her department and (b) every entity reporting to her went to (i) SMMEs and (ii) co-operatives from 1 April 2015 up to the latest specified date for which information is available?

Reply:

a)  The Department does support SMMEs, Co-operatives, as well as Township and rural enterprises through their procurement spent.

b) The procurement spent for SOEs was mainly on SMMEs and they are detailed below as follows.

Entity

Report

NNR

15% of R51 million total Expenditure year to date on goods & services

SANEDI

R3,313770.00 being 19% of total cash and accrued operating expenses

CEF

R 3,847,260,039.37 spent on BBEE including SMME (CEF Group does not report specifically on SMMEs and Co-operatives or categories these suppliers separate from the BEE spend.

NECSA

37% of the total procurement spend (R 86 million) was spent on Qualifying Small Enterprises (QSEs= Annual revenue of less than 10 million

25% of the total procurement spend ( R 58 million ) was spent on Exempt Micro Enterprises (EME=Annual revenue of less that R 50 million )

NB: In terms of the BBBEE Act, SMME’s are now referred to as QSEs and EMEs.

NERSA

More than 40% of R60 million (NERSA’s procurement spend for 2015/16) went to service providers with a BBBEE Level 3 and above.

NRWDI

NRWDI is not yet operational; this is not applicable to the Institute.

Source file