BUSINESS MAVERICK: BEE requirements on state tenders are in for a major shake-up in wake of court judgment

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A Supreme Court of Appeal judgment about BEE and preferential procurement has the potential to change how the government and its entities procure goods and services. Government entities cannot disqualify companies that are not majority black-owned without first considering their tender bid, the price and proposition of the tender.

and other Covid-19-related goods – but insisted on BEE requirements. This resulted in incidents of newly established companies with favourable BEE profiles and no track record of sourcing PPE being unlawfully awarded multimillion-rand tenders. Some of these companies were tied to politically connected individuals.

The enacting of amended procurement regulations in January 2017 gave government entities the discretion to disqualify companies that are not 51% black-owned from the tender bidding process. In doing so, government entities would disqualify companies without first considering their bid or even the price and proposition of the tender.

The High Court in Pretoria ruled that the regulations were lawful because they followed a preference point system and didn’t place a large emphasis on race at a tender prequalification stage. But the Supreme Court of Appeal reached a different conclusion.

 

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Thank you AfriBusiness. Sakeliga. Let THAT sink in.

We should blame ANCParliament at how BAD the BBBEE was implemented...

They blame President Ramaphosa....stupid people balendawo

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