Not even 10% of the R150 bn procurement budget set aside for black business will be used

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By Tshepo Kgadima

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WITH ten months to go before the end of this financial year, it is becoming more likely that not even 10% of the R150 billion, which constitutes 30% of the R500 billion State procurement budget set aside for black businesses, will be achieved.

Major reform of the Preferential Procurement Policy Framework Act (PPPFA) which came into effect in April this year, was held as a tool in driving radical economic transformation. Then at an Economic Sectors, Employment and Infrastructure Development cluster briefing held in Capetown, Minister of Small Business Development, Lindiwe Zulu, said the new PPPFA regulations could potentially make available R150 billion a year in opportunities for small businesses and cooperatives.

Finance Minister Malusi Gigaba in his first speech in the portfolio also reiterated government’s commitment to using state procurement as a means of promoting black-owned, women-owned and youth-owned enterprises and SMMEs.

Sadly, National Treasury has not taken any measures to compel the oligopolistic cartel of banks to provide structured financing facilities on this R150 billion procurement set aside.

Instead, National Treasury elected to push for the signing into law of the draconian and unconstitutional FICA Act which has now resulted in banks freezing and closing bank accounts of black companies that do business with the State, without any due process whatsoever.

This past Thursday I became aware of the latest victim of FICA Act, a black women owned company whose bank account was frozen by Standard Bank without a court order. The account was unfrozen late in the evening whilst we were on the way to court for an urgent interdict.

This is the sad  state of affairs black people now find themselves in; trespassers in their own country of birth!

The growing discontent and feeling of helplessness among the black majority who are victims of the imperialist, white monopoly capital persecution and a government that is seemingly approving of this tragic oppression will lead to self help (total anarchy). Peace and freedom loving people of this land must not be pushed too far!!

4 Comments on "Not even 10% of the R150 bn procurement budget set aside for black business will be used"

  1. Jannie van der Merwe | June 6, 2017 at 11:53 am | Reply

    It is a very sad. I cannot contemplate the growing anger i feel inside of me reading these and other stories. Our government is scoring own goals all the time. When will these things change. Why must we always check with white capital to appease them before we implement stuff that is to the benefit of black people in this country. We all must be very very angry seeing these things happening. Every day that pass is an opportunity lost to bring a better life to our people. It is disheartening.

  2. Puleng Lekgoathi | June 7, 2017 at 7:41 am | Reply

    It is very sad indeed, unfortunately treasury is anti Economic Transformation and pushing a neoliberal Agenda that excludes blacks from competing fairly in the very same space other spheres of Government are creating. Some one must smell the coffee and rectify this before its too late.

  3. Moses Shabangu | June 7, 2017 at 9:56 pm | Reply

    Hi but the government can’t be told of a few individuals unles the government is powerless or skewed. As I speak I have applied as a South African disabled man, my company is all over in South Africa’s government database and nobody bothers or cares about us. Since 2013 we update our documents every year. It costs me a lot of money and I’m not working. I have B-BBEE plus CIBD for building. Because there’s nobody who cares for us. Those with deep pockets, the whites do as they please.

    • Pinky Khoabane | June 9, 2017 at 11:55 pm | Reply

      Dear Moses

      THanks so much for joining UnCensored. Im extremely touched by your story. Perhaps you can give us details of your company and maybe someone here can see how they can assist you.

      Kindest regards

      PK

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