Set-asides boost transformation in Public Works sector

Friday, August 18, 2017

Historically marginalised women, youth and people with disabilities are benefitting from the mandatory 30% sub-contracting stipulated for all tenders above R30 million.

To date, over R94.2 million has been awarded to this group in the current financial year, Public Works Minister Nkosinathi Nhleko announced on Friday.

“This is in line with the new Preferential Procurement Policy Framework Act (PPPFA) on set-asides that we are implementing to promote socio-economic transformation, small enterprises, cooperatives, rural and township enterprises, as well as local industrial development,” Minister Nhleko said at a media briefing in Pretoria. 

The briefing, which was held at the Ronnie Mamoepa Media Centre at the GCIS headquarters, was a platform for the Minister to give an update on his department’s five-pillar policy on transformation of the construction and property sectors. 

To mitigate risks of underperformance, sub-contractors are required to have the relevant accreditation and be registered with industry bodies. 

“They must possess capabilities to deliver the sub-contracted work, meet the requirements in terms of the stipulated designated groups and be geographically located at the place where the project will be delivered. 

“A Property Empowerment Policy has also been developed to address the skewed patterns of ownership and break the inequitable access to property opportunities, actively direct the advancement of majority black-owned, managed and controlled entities, and create an enabling environment and support for black-owned property enterprises,” the Minister said. 

The policy follows the Property Sector Charter, launched in partnership with the Property Sector Council in June 2017, to deepen the meaningful participation of the previously disadvantaged in the mainstream of the South African economy, while at the same time contributing to an equitable society. 

“It will also contribute towards government achieving its strategic goals of Black Economic Empowerment and alignment of transformation initiatives towards the realisation of the property sector codes,” Minister Nhleko said. 

In addition to hosting a transformation indaba together with the Council for the Built Environment on 29 August 2017, the Minster is putting in place a Transformation Coordinating Committee composed of industry players and government representatives to develop a policy document to address the developmental challenges in the construction industry. –

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