B-BBEE CLARIFCATION ON PROCUREMENT
A lot of rumors is circulating concerning the abolishment of B-BBEE, following the release of the government gazette 47452 on 4 November 2022. This document is an amendment to the Preferential Procurement Policy Framework Act. While we are definitely going to see some changes, the finance minister has made it clear that the focus is on Government and SOE Procurement, relating to how proposals will be evaluated.
“There is no basis to say we are doing away with BEE.” - Enoch Godongwana (Finance Minister)
The new gazette of 4 November arose from a Constitutional Court judgement in February 2022 requiring the PPPFA to align with the Constitution. The changes are as follows: B-BBEE scoring calculation and criteria will be removed as a predetermined mean of calculating the 10 (of 100 points on the 90/10 criteria) or the 20 (of 100 points on the 80/20 criteria). The revised legislation now refers to two very important concepts:
That the “10 or 20” be determined based on (transformation) goals
In 2023 further clarity will be published
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