"Participation Builds Unity"
"MADE IN AFRICA - FOR AFRICA"
"Participation Builds Unity"
"MADE IN AFRICA - FOR AFRICA"
PRESENTS
Finance Minister (South Africa) Trevor Manuel
calls for new discourse on empowerment
ENGINEERING NEWS
05 OCTOBER 2005
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Manuel calls for new discourse on empowerment
Finance Minister Trevor Manuel yesterday criticised the narrow focus on black economic-empowerment (BEE) equity transactions and called for a new discourse on the issue of economic transformation.
Speaking at the Star-Safmarine business breakfast in Johannesburg, Manuel said that deal making alone would 'sell the country short' and that equity transactions that were not founded on value addition would come unstuck.
I don't think we have been able to change all the laws of economics in South Africa yet. Basic production of surplus, of value addition, has not been removed. So this idea that people can simply amass wealth by just having been at the right place, but without having added any surplus, can't be sustainable, Manuel argued.
He said South Africans needed to re-engage in a discourse to find a rational basis for economic growth and equity.
(This discourse) is not about finger pointing, but about the rationality of how you grow economies. Clearly, what we had in the past - an economy focused and controlled by the white minority - is not sustainable. But I think we must establish a stronger national basis for going forward and we mustn't be afraid to talk about these issues. Merely being in the right place at the right time is, I submit, not a rational basis for proceeding, Manuel stated.
He also pointed to an overhaul of government's approach to preferential procurement as well as greater alignment at all levels of government on how contracts are let.
Firstly, government was hoping to unify the scorecard model, with the objective of having a solution that was easily understood and that could be administered by all business types, large or small. The objective was to ensure value for money as well as greater equity, while creating certainty on the administration of preferential procurement.
Government was also interrogating its supply-chain management, with the intention of laying the basis not only for open enquiry, but also a more centralised compliance mechanism.
Thirdly, there were moves towards aligning national government policy with the actual contractual experience at local and provincial government, where the bulk of State procurement took place.
Manuel pointed to a Government Gazette issued in May, which dealt with local government procurement.
He said the document set out a far more rigorous framework, which prevented public representatives, public officials and first-degree relatives, at all levels of government, from tendering for any contract. The system was to be phased in from this month at the larger councils through to July next year at the smaller municipalities. It would also disallow any public representative from sitting on a tender board.
This is a groundbreaking change to the rules . . . and I think people need to engage with it. Because unless we create the partnerships that make the difference, we fail democracy. Laws on paper are one thing, but they won't be implemented unless we have a more active society, Manuel concluded.
Author: Terence Creamer
Portfolio: Deputy Editor
E-mail: newsdesk@engineeringnews.co.za
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