Sanral latest: Construction industry defends transformation achievements

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The construction industry's defence of its transformation achievements follows Sanral’s withdrawal of its preferential procurement policy.

Stakeholders say the sector is one of the most transformed in the country. Photo: H&I Construction website

Wolgang Neff, CEO of JSE-listed construction group WBHO, which joined H&I’s application to review and set aside the Sanral policy, stressed that its legal challenge was premised on the principle that where an organ of state allocates preference points to advance the specific goal of advancing transformation and redressing historical disadvantage, it must do so in compliance with the law to ensure that it is fair, equitable, transparent, competitive and cost-effective.

However, he said what somehow seems to be getting lost in translation is that the construction industry is one of the most transformed, if not the most transformed, industry in the country. In the same period, the number of medium contractors with more than 50% black ownership increased to 82%, and for small contractors to 67%.Chemaly is confident this trend will continue to improve provided it takes place in a sustainable manner in line with the Constitution and other legislation to ensure that it happens in a fair, equitable, transparent, competitive and cost-effective manner.

Neff went on to say: “WBHO’s concern with the disputed Sanral policy was its blunt approach towards transformation with its narrow focus on direct black ownership, as evidenced by the arbitrary and disproportionate weightings allocated to 100% direct black ownership vis-à-vis 99% or 69% black ownership.

Neff said WBHO’s commitment to transformation is evidenced by the fact that the company is majority black-owned, has a Level 1 B-BBEE recognition score, and is actively engaged in transforming the construction sector.

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