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Black Economic Empowerment - A Change For The Better
Black Economic Empowerment - A Change For The Better
2012/03/05 5:57 PM
URL: http://www.engineeringnews.co.za Policy, Law, Economics and Politics Deepening Democracy through Access to Information
POLITY
2012/03/05 5:57 PM
These are some of the negative effects that are present in tender distribution. Given the corruption that takes place when dealing with tenders, businesses have been given the opportunity to rectify their scorecards to comply with the PPPFAs new BEE regulations in terms of tenders being awarded. Levenstein notes that, from the beginning of December, all State-owned businesses will begin using the new BEE scorecard for all tender awards. Meanwhile, he notes that the new Act will require significant dedication to transformation. Teething problems are expected during this process, which will need to be taken into account. One of the problems businesses may struggle with is the fact that they will have a limited period to get their scorecards in order, explains Levenstein. Another challenge that the industry will need to face is the training requirement for officials. Officials will require advanced knowledge of BBBEE principles to be able to correctly implement the new requirements. Besides this, many businesses do not know that their scorecards should be re-evaluated. These businesses may lose the opportunity to tender because they cant issue a scorecard, says Levenstein.
He believes that more should be done to inform people about businesses that have been operating with fraudulent scorecards. This will help to raise awareness for consumers and will serve as a warning to anyone attempting to defraud the system. This could decrease the occurrence of fraud allegations, as well as create awareness of the fact that a scorecard is an important part of the South African tender business, concludes Levenstein.
http://www.polity.org.za/print-version/bee-a-change-for-the-better-2011-09-02
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