1 April 2017 is fast approaching, and companies who tender need to be aware of the complications and changes surrounding the PPPFA.
Also, we will be faced with a situation where we suspect tender bodies to compare a BEE Certificate issued under the 2007 Codes of Good Practice legislation to that of the 2013 Amended Codes of Good Practice. The Department of Trade and Industry have confirmed through workshops, that they have notified the applicable tender bodies of the changes in the BEE legislation. The main change would be that we do not believe that a certificate issued under the old legislation can be compared to a certificate under the new legislation. We are seeing that most companies have dropped by at least 2 levels under the new legislation, to their rating under the old legislation. This is due to the increase in targets and the requirement to meet additional element criteria.
I would suggest that entities applying for tenders, notify the tender body, through the application, and state that they will be submitting a BEE certificate under the new legislation, and should thus be evaluated accordingly.
A gazette called Preferential Procurement Regulations 2017 was published on 20 January 2017, and comes into force for all state entities on 1st April 2017. The document is attached. The change in regulation is crucial to understand.
Download PPPFA_Amendments_Act 20 January 2017 here
For any further information, please feel free to contact Moore Stephens Cape Town BEE Services at 021 525 8600 email@example.com