Changes to BBBEE Criteria for Public-Entity Tenders
As published in the Government Gazette on 8 June this year, various changes have been made to the factors organs of state must consider when procuring goods. The changes formed part of the updated regulations of the Preferential Procurement Policy Framework Act No 5 of 2000. In their briefing note on the regulations, National Treasury has indicated that the revised regulations will also apply to public entities that were previously exempted from the old regulations.
One of the main amendments is that organs of state must consider the Broad Based Black Economic Empowerment (“BBBEE”) of any entity that submits a tender. As a result, tenders can no longer be awarded based on just one or two elements of BBBEE such as ownership or management control; the overall BBBEE scorecard must be considered.
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