We Will Fight Public Procurement Regulations Based on BEE

Statement by Dr Mark Burke MP – DA Spokesperson on Finance:

The DA will fight vehemently against the draft public procurement regulations. Already two flagship DA governments, the Western Cape Province and City of Cape Town, are challenging the underlying law that gave rise to the latest draft regulations, and now the DA will oppose the draft regulations with the same fervor.

The DA calls on South Africans to also oppose these new draft regulations, by lodging opposition in writing.

Government’s purse is strained. Corruption masquerading as BEE is rampant. What we need are laws and regulations that address our problems, not ones that exacerbate poverty and inequality. When you do business with South Africa incorporated, you should be asked to do so at a discount, not at a crony premium.

When public procurement does not focus primarily on value for money, poor South Africans suffer the most. The state is delivering fewer services, employing fewer nurses and teachers, and procuring fewer goods than it could be.

Doubling down on prequalification criteria in the draft regulations will only make this problem worse, by reducing competition for tenders and opening the door to arbitrary exclusion of otherwise competitive bids. The costs of this policy are paid by South Africans who rely on the state. The benefits are captured by politically connected elites.

The new regulations are a continuation and strengthening of the same broken policies. The regulations with their onerous BEE and local content requirements will make everything from toilet paper to tunnels more expensive without reducing inequality or meaningfully supporting local manufacturing.

The DA has been consistent in our opposition to the Public Procurement Act – including court action. South Africa deserves regulations that will benefit everyday South Africans, not elites.