PROCUREMENT IS NEEDED TO IMPLEMENT BEE CODES

Thursday has become "Compliance Issues" day - and what a way to start the day? Trying to fathom the whole concept of BEE codes and compliance. Some of the requirements are really confusing, which of course opens up everything to 'perception and interpretation' or perhaps I should say mis-interpretation, often deliberate mis-interpretation, especially if you want to 'bend' the whole concept into your favour.

Someone out there needs to develope a very simplistic type of chart or something similar that explains the whole BEE code and how you get to it in the most simplistic manner.

Come on people, there's an opportunity right there for someone!

Procurement is needed to implement BEE codes
Sandile Ngcobo

22 January 2007 at 06h00

Trade and Industry minister Mandisi Mpahlwa released the final set of Codes of Good Practice on BEE in December and promised these would be gazetted in January. I have no doubt in my mind that industry players will be hard at work this year to ensure that their charters are aligned with these codes.

Every business - from major corporates to small businesses have to comply with these codes. The gazetting of codes would provide a legal status and framework from which empowerment could be implemented and measured. It will further spur deal-making and end excuses for not effecting transformation in the economy.

My take is that for these codes to succeed, the role that professional bodies and procurement departments should be playing in implementing these codes is to uplift the economy in a sustainable manner and spreading the so called "cake" to the previously marginalised.

EmpowermentWomen are a special interest group in empowerment, especially in light of a recent Arthur Goldstuck report that BEE has failed women. I have observed over the years that companies; especially big private companies like to play "devil's advocate". You will find a good policy statement hanging in their posh offices claiming what they believe and represent as far as BEE is concerned. But at the crux of the matter is that it sometimes differs when it comes to how they implement those "posh" policy statements.

They tend to hide behind excuses such as will the BEE company have adequate resources for the job; experience and background in this industry; health and safety requirements and all other non technical requirements as their excuses for not awarding work to the BEE supplier or contractor.

One will ask why I am so concerned about the role of procurement in these codes. The codes measure seven key elements. These are: ownership; management control; employment equity; skills development; preferential procurement; enterprise development and socio-economic development.

Procurement occupies 20% of the codes. The procurement code or element measures the extent that enterprises buy goods and services from BEE complaint suppliers as well as black owned entities. This includes key principles but not limited to; setting specific targets for procurement from Micro and Qualifying Small Enterprises, and setting specific targets for procurement from black owned and black women's enterprises.

In my mind only procurement and contracting managers will ensure that we achieve this. If they don't develop contracting and procurement strategies, which include supplier development initiatives and strategies for empowering small and medium enterprises; and put proper structures for opportunities for SMME's, we will fail to achieve what these codes attempt to accomplish in a sustainable way.

I am of the view that our procurement professionalism is needed now to drive the implementation of these codes and grow the economy in a sustainable way.Different professional bodies should now join together and find out how they can contribute instead of a "wait and see" approach. These bodies should seek to form strategic relationships with different stakeholders who are keen and interested in this important change.