Today our guest is Black business council ceo Kganki Matabane

  • Transnet and Eskom have asked National Treasury for permission to be exempted from the Preferential Public Procurement Framework Act, arguing that the policy affects efficient procurement in their operations.
  • Among other things, they say it causes delays and instability in prices.
  • The Preferential procurement is also known as affirmative procurement and comprises participation programmes aimed at the engagement of Small Medium Micro Enterprises owned by previously disadvantaged persons in all types of contracts.
  • The entities were briefing Parliament's Portfolio Committee on Public Enterprises last week, saying that to contain costs and procure efficiently, the state-owned entities have often had to deviate from procurement guidelines.
  • The Public Finance Management Act does also allow entities to apply to the Office of the Chief Procurement Officer at National Treasury for permission to deviate from these guidelines on a case-by-case basis.