Public Works' Macpherson says govt may need to reconsider tender policy around BEE companies

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Minister of Public Works Dean Macpherson said that this policy, which stipulates that 30% of large contracts must go to small BEE companies, has been exploited by construction mafias.

JOHANNESBURG - Minister of Public Works Dean Macpherson said that government may need to reconsider its tender policy, which stipulates that 30% of large contracts must go to small Black Economic Empowerment companies.The minister spoke on Tuesday at the launch of Infrastructure South Africa's multi-million rand fund, which is aimed at assisting government entities with project preparation.

The 30% rule comes from the Preferential Procurement Policy Framework Act, which mandates that tenders worth over R50 million must be subcontracted to a company owned by a person from a historically disadvantaged group.

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