By Tshepo Kgadima
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!!