ANC leaders say DA’s alternative public procurement bill should open talks for review of BEE

BY SISANDA MBOLEKWA AND LIZEKA TANDWA

The DA’s new economic inclusion for all bill has opened a discussion among the ANC’s elite on whether the party should review the mechanics of the Broad-Based Black Economic Empowerment (BBBEE) policy.

Three high-ranking ANC leaders who spoke to Sunday Times said that while redress was non-negotiable, a review of the BBBEE policy in its current format must be conducted.

“We must always allow discussion over the instruments of redress as long as the principle of redress remains. We must allow disagreements to take place. Yes, we can say that BEE has not achieved what it wanted to achieve,” a high-ranking ANC member said.

Another ANC insider said that BEE had not translated into jobs and that government procurement must be reviewed.

While some within the ANC believe that this opens up a window to review the impact of its policies, some believe that the DA’s bill could spell more trouble for the already fractured government of national unity, with some senior caucus members accusing the DA of wanting to reverse transformation.

Some ANC caucus members say the party should review its decision to have the DA stay in the GNU, claiming that the coalition will further harm it when it contests the local government elections.

The ANC caucus had previously called for the DA to be removed from the GNU, ambushing its secretary-general, Fikile Mbalula, during a meeting earlier this year following the VAT impasse.

Without its majority in parliament, the ANC will have to depend on the MK Party and the EFF to thwart the DA’s plans to scrap the BBBEE policy. President Cyril Ramaphosa has already dismissed the bill, saying the BBBEE policy applies without dilution.

“I have not yet seen their proposals. Currently, we have a BEE policy that is rooted and underpinned by our constitution, so if anyone wants an amendment to the BEE Act, they must table their proposals and they must be taken for discussion in parliament. At the moment, BEE policies, legislation and regulation apply, without any dilution whatsoever.”

Another ANC leader, however, said the proposal by the DA, which could pave the way for the BEE laws to be relaxed in favour of equity equivalents, should have been considered by the national executive committee.

While the DA’s hopes of having the bill passed in parliament are slim to none, insiders in the party say that the bill is another step towards scrapping policies which have enabled corruption and state capture.

The bill seeks to amend the Public Procurement Amendment Act of 2024, to repeal all race-based preferential procurement provisions and replace them with an empowerment system that targets poverty as the proxy for disadvantage instead of race.

The DA said the bill removes provisions for set-asides, prequalification criteria, subcontracting conditions and local content designations, replacing these measures with an outcomes-driven system centred on inclusive development and value-for-money procurement.

“Furthermore, the transitional measures in the bill include the winding down of the BEE Commission over 12 months and the systematic removal of references to BEE across legislation. To give effect to this change, the bill empowers the minister of trade, industry and competition to develop a simplified preference points system based on a supplier’s demonstrated contributions to inclusive development and social impact.”

If the DA was very serious about breaking inequality, then it would push policies that look at ownership patterns of land, they would be telling us about coming up with alternatives instead of simply opposing expropriation of land.

—  Mcebisi Ndletyana, political analyst

Political analyst Mcebisi Ndletyana dismissed the DA’s proposed bill as a credible alternative. Instead, he accused the party of constructing a “bogeyman” to bolster their long-standing arguments against the racially transformative legislation.

“They are pushing an old argument that they have been pushing since their inception, which is opposition to racially based transformation.”

Despite conceding that the argument against BEE in practice holds some water, he still believes the DA’s approach is misled.

“There is a difference between the principle of BEE and the way it has been operationalised. The problem has been always at the point of implementation where there is corruption as we all know in South Africa.

“So the problem remains — that of an unequal economy at best along racial lines and the fact that there is that inequality is not a product of an accident. This was a result of deliberate policies of the previous government to favour and privilege white folks. Those white folks continue to use those advantages.”

Ndletyana said if the DA intentionally wanted to remove systemic inequality, they would take aim at the land question and not oppose it as the party’s stance against progressive bills such as land expropriation.

“If the DA was very serious about breaking inequality, then it would push policies that look at ownership patterns of land, they would be telling us about coming up with alternatives instead of simply opposing expropriation of land.

“The argument that BEE perpetuates poverty is a false narrative. Poverty and inequality are affected by many things. When you talk of business and business opportunities, you are most likely going to have people who are business oriented. These are not grants that go to everybody on the basis of need, but these are bills that cater for people who aspire to go into business and have the skills, expertise or even capital to do so.”

The analyst said despite a possible interest to venture into business with the state, the skill set and capital are uneven compared with those of white people, therefore affirming the need for transformative legislation like BBBEE.

“In this country, we have a policy to deracialise the economy. The point is to throw a rope behind the wall to lift up those who have been left behind, and it is clear in this country that those are by and large black people. It’s just a bogeyman, a scare tactic, to make people believe that BEE is a wrong policy when it is not.”

DA spokesperson Willie Aucamp said the party was firmly committed to redress, arguing that it holds it to be a foundational principle. He said the DA recognises the injustices of the past and are actively working to create a more inclusive economy for all.

“⁠The assertion that the bill will alienate middle-class black voters is conjecture. Publicly available polling demonstrates that there is a shift in attitudes among voters of different races towards BEE, considering how it has been used as a tool to plunder public funds, benefit the politically connected elite and ultimately compromise service delivery. The DA remains committed to connecting with voters of all racial, gender and socioeconomic backgrounds.

“⁠The DA may be in coalition with the ANC, but that doesn’t mean we need to agree with them all of the time. We are a distinct party with our own policies and we will continue to advocate for changing policies that we think are harmful to South Africans and the economy. The ANC needs to realise that it no longer holds a majority and therefore, they need to consider the views of their largest coalition partner.