DA wants BBBEE scrapped, says companies should be judged on contribution to society
The Democratic Alliance (DA) believes companies, who want to do business with the government, should be scored based on sustainable development goals and not on the racial make-up of its shareholding.
The DA has long opposed race-based legislation to address the inequalities facing the country.
The party accused the African National Congress (ANC) of using race-based legislation to benefit a few, while most economically marginalised people continue to live in poverty.
The DA has now fine-tuned its stance on race-based policies.
It will present a private member's bill to amend the Preferential Procurement Policy Framework Act (PPPFA) and the Broad-Based Black Economic Empowerment (BBBEE) Act.
The DA said its amendments to the act, termed the social impact bill, would enable broader socio-economic redress.
The proposal does not focus on race or BBBEE status when scoring for government tenders is adjudicated.
Currently, bidders receive extra points on the scorecard, based on the BBBEE level.
The DA said companies should be incentivised for its contribution to social development goals.
How businesses had contributed to education, job creation and lessening socio-economic inequality should be used for government procurement processes.
The DA's head of policy, Gwen Ngwenya, said a focus on sustainable development goals was not only an internationally recognised procurement measure, but it would ensure that economic redress was achieved.
"Since the creation of the PPPFA, it has not seen the advancement of those disadvantaged. Our proposal intends to keep an element of preference in the allocation of contracts, but we want to ensure the impact is truly broad-based.
"By replacing BBBEE with recognising companies' private contributions to sustainable development goals, the PPPFA will enable addressing underlying causes of inequality. And benefits will go to those who need them. Black people would ultimately benefit," Ngwenya said.
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