DA’s social impact bill to scrap B-BBEE act  

The Democratic Alliance (DA) said the current Preferential Procurement Policy Framework Act (PPPFA) and Broad-Based Black Economic Empowerment (B-BBEE) act needs a serious and urgent overhaul if South Africa is to weather its current economic climate.

The party said in the coming weeks it will publish a Notice of Intention to introduce a Private Members Bill and Invitation for Comment’ in the Government Gazette.

It said the Preferential Procurement Policy Framework Amendment Act, or ‘Social Impact Bill’ will amend the PPPFA and scrap the B-BBEE Act, and ultimately enact what both legislations failed to do – address the root causes of inequality of opportunity across South African society.

DA Shadow Minister of Trade, Industry and Competition Dean Macpherson said the legislations need an overhaul because they have been abused.

“For many years, the rich and politically connected have abused the PPPFA to enrich themselves. This was enabled by an ANC government that only focused on cadres and comrades, and paid little mind to founding principles of the Act which was to root out inequality and create a better future for all South Africans.”

Macpherson said the DA’s Bill’s SDG model has a number of benefits over the current B-BBEE model.

“The most important factor for government procurement will remain price and functionality as capability to execute and lowest cost will benefit those reliant on government services the most, and in turn lead to the greatest upliftment of society as a whole, root causes of inequality will be directly addressed without relying on ineffective trickledown redress.”

Macpherson also said the party’s SDG model will provide for 17 different goals, which companies focus on based on what they will have the most sectoral impact on.

“The SDG model is globally recognized, and is increasingly international best practice, whereas existing legislation is highly localised and not internationally accepted.”

The PPPFA which came into effect in 2000 allows black-owned businesses to score additional 10 to 20 percentage points when tenders are evaluated depending on their value which gives effect to the Constitution, which says that government procurement must reflect value for money.

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