Progress on Draft PPPFA vs BEE Codes – Parliament in January

PPPFA vs BEE Codes.pngNational Treasury has received 148 Comments so far on the proposed draft amendment to the PPPFA that was published in August 2009 for comment from the public and stakeholders. A first presentation on these comments will be made toParliament in early January 2010 , a senior source in National Treasury told Smart Procurement.

The amendment seeks to align government procurement policy (under the Preferential Procurement Framework Act – PPPFA) with the BEE Codes of Good Practice.

The draft amendment was necessitated by the fact that companies tendering for business are being evaluated differently with regard to their Black Economic Empowerment (BEE) credentials depending on whether the buyer is from the private sector (which evaluates according to BEE Codes of Good
Practice) or the public sector (Evaluates according to the stipulations of the PPPFA).

The 148 comments have been posted by various stakeholders including the National Economic Development and Labour Council (Nedlac), organized labour and State Owned Enterprises (SOEs).

Some of the comments include:

“The revised policy must place greater emphasis on local empowerment.”

“It should make provision for set asides (for example: certain spend categories should be set aside for black empowerment)”

“The proposed PPPFA legislation will have far reaching negative consequences for SOEs, and should, therefore exlude SOE’s.”

“National Treasury (NT) is strongly encouraging public participation regarding the draft amendment to the Preferential Procurement Policy Framework Act (PPPFA).”

“It is of the utmost importance that every stakeholder is heard and participates so that the presentation to parliament may be as inclusive and comprehensive as possible,” Treasury commented.

Click here to view the PPPFA draft amendment


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