Govt to tackle 'tenderpreneurs'

On Thursday the Minister of Trade & Industry, Dr Rob Davies, said that the IPAP contained a significant number of important questions regarding state procurement which are expected to benefit local industries and black economic empowerment (BEE).

Last year treasury's draft regulations on state procurement were sharply criticised by local manufacturers, empowerment players and politicians, because they did not give government bodies sufficient incentives to help the domestic economy.

The regulations are being reviewed at present.

At a media conference after the first meeting of the Broad-Based Black Economic Empowerment Advisory Council, Davies said it would make policy recommendations to fine-tune BEE legislation, as well as to broaden and intensify black participation in the economy.

Obstacles that need tackling include the phenomenon of sham companies, "tenderpreneurs", where black companies win state tenders at a premium and then simply outsource them to white companies, as well as that of empowered companies that import products at the expense of local jobs, said Davies.

- Sake24.com

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