PODCAST | The Story: Unpacking BEE regulations with Carol Paton

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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."


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