AfriForum rejects race requirements in draft regulations on public procurement
AfriForum has submitted comments on the draft regulations for the Public Procurement Act and strongly condemned the racial requirements contained therein. The regulations include, among other things, thresholds for the volume of tenders to be set aside for suppliers belonging to specific categories of persons – such as black people, black women, black people with disabilities, military veterans, and so forth. AfriForum’s comments point out that these requirements conflict with the principles set out in Section 217 of the Constitution. Section 217 stipulates, inter alia, that the awarding of any contract with an organ of state must take place through a system that is fair, equitable, transparent, competitive, and cost-effective.
Section 60 of the draft regulations even requires that bidders for a contract with a state organ must be able to prove that 40% of their own procurement spending went to black-owned enterprises. AfriForum believes that such requirements will disqualify numerous competent and competitive enterprises. The organisation’s comments point out that public procurement is not an end in itself. Ultimately, every procurement decision determines whether roads are repaired, electricity networks are maintained, clean drinking water is supplied, refuse is removed, and infrastructure is preserved. The requirements in these draft regulations will actually hinder the delivery of goods and services.
According to Louis Boshoff, a spokesperson for AfriForum, racial requirements for public procurement are not merely a moral injustice; they will ultimately lead to inefficient spending. “Ordinary citizens will ultimately pay the price and bear the consequences of substandard service delivery.” AfriForum’s comments also highlight the fact that public procurement is one of the primary mechanisms through which corruption has occurred in South Africa’s recent history.
Although AfriForum acknowledges parts of the regulations that encourage sensible practices, the organisation insists that the clauses containing racial requirements be scrapped or amended. “The Treasury has provided no empirical evidence explaining how exclusionary practices will improve procurement outcomes; therefore, these requirements must be rejected,” Boshoff concludes.
