Monday 31 October 2011

Davies: New BEE tender rules out soon: Fin24: Economy

Davies: New BEE tender rules out soon: Fin24: Economy:

Johannesburg - New preferential procurement regulations will come into force on December 7, Trade and Industry Minister Rob Davies said on Monday.

Speaking during a debate hosted by I-Net Bridge, Davies said the first round of regulations would include infrastructure such as railways, set-top boxes and Eskom's Medupi power plant.

Companies with broad-based black economic empowerment (B-BBEE) ownership will score extra points when bidding for government procurement contracts.

"The goal is to stimulate local manufacturing production, without necessarily compromising competitiveness," the minister said. "Valued added activity has got to be at the forefront."

ETM economist Russell Lamberti said the implementation of the BEE policy had been "awful to date". "We will probably be having the same discussion five to 10 years down the line if the government does not cut the red tape and allow individuals to decide how to take part in the economy. SA has hugely complex economic policy," Lamberti said.

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