PODCAST | The Story: Unpacking BEE regulations with Carol Paton

play article
Subscribers can listen to this article
Finance Minister Enoch Godongwana briefed journalists on Tuesday about the Preferential Procurement Regulations.
Finance Minister Enoch Godongwana briefed journalists on Tuesday about the Preferential Procurement Regulations.
  • The new regulations govern the rules for procurement for all state-owned entities and companies.
  • Finance Minister Enoch Godongwana has denied they are a setback for transformation.
  • The new regulations were brought about by a Constitutional Court judgment earlier this year.

On Tuesday, Finance Minister Enoch Godongwana briefed journalists on the Preferential Procurement Regulations. 

The new regulations have come under fire from some quarters, but the minister has denied they are a setback for transformation.

This week on The Story, we unpack the regulations with News24 Business writer at large, Carol Paton. 

A Constitutional Court judgment brought about the new regulations in February that struck down the existing regulations. 

Paton said: "The reason they were struck down was because the minister didn't have the power to make them, so they were too far-reaching in terms of what the act would allow."

READ | Carol Paton: Why Godongwana's gamble on damp squib public service strike is a safe one

She added black-empowered companies "get extra points" when doing business with the state and that "all tenders are scored on a point system". 

"It's still very advantageous to be black empowered, and in fact, government departments and state-owned enterprises are still allowed to add their own empowerment criteria."

Paton said the new regulations were "not a major game-changer".

She added there had been confusion around the new regulations as "there was no explanation at the time [National] Treasury did this; they just gazetted the regulations and didn't explain". 

"Once you get to grips with what it means, there isn't actually a policy change."

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Voting Booth
A Section 89 panel headed by former chief justice Sandile Ngcobo found President Cyril Ramaphosa has an impeachable case to answer on the Phala Phala scandal.
Please select an option Oops! Something went wrong, please try again later.
Ramaphosa should do the honourable thing and immediately resign.
22% - 2394 votes
Ramaphosa should follow due process and submit himself to an impeachment hearing.
30% - 3238 votes
Ramaphosa should fight the findings in court and keep his job at all costs
48% - 5213 votes
Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Aus dollar
Rand - Yen
Brent Crude
Top 40
All Share
Resource 10
Industrial 25
Financial 15
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.