Set asides boosts transformation of construction & property sectors - Minister Nhleko
Historically marginalised women, youth and people with disabilities are benefitting from a mandatory 30% sub-contracting subjected to all tenders above R30 million with over R94,2 million already awarded in the current financial year, Public Works Minister Nkosinathi Nhleko announced on Friday.
“This is in line with the new Preferential Procurement Policy Framework Act (PPPFA) on Set-Asides that we are implementing to promote socio-economic transformation, small enterprises, cooperatives, rural and township enterprises as well as local industrial development,” declared Nhleko at the media briefing on his five pillar policy and transformation of construction and property sectors held at the Ronnie Mamoepa Media Centre in Pretoria.
Nhleko emphasised that in order to mitigate risks of underperformance, sub-contractors are required to possess relevant accreditation where applicable, be registered with relevant bodies.
“They must possess capabilities to deliver the sub-contracted work, meet the requirements in terms of the stipulated designated groups and be geographically located at the place where the project will be delivered,” he stressed.
A Property Empowerment Policy has also been developed to address the skewed patterns of ownership and break the inequitable access to property opportunities, actively direct the advancement majority black-owned, managed and controlled entities and create an enabling environment and support for black-owned property enterprises, he said.
The policy follows the Property Sector Charter launched in partnership with the Property Sector Council in June 2017 to deepen meaningful participation of the previously disadvantaged in the main stream of the South African economy while at the same time contributing to an equitable society.
“It will also contribute towards government achieving its strategic goals of Black Economic Empowerment and alignment of transformation initiatives towards the realisation of the property sector codes,”
In addition to hosting a transformation indaba together with the Council for the Built Environment on 29 August 2017, the Minster is putting in place a Transformation Coordinating Committee composed of industry players as well as government representatives to develop a policy document to address developmental challenges of the construction industry.
Enquiries:
Lesiba Kgwele
Cell: 082 803 5133
E-mail: Lesiba.Kgwele@dpw.gov.
