In a ruling this week, the Supreme Court of Appeal declared that the preferential procurement regulations of 2017 were invalid and set them aside.
KwaZulu-Natal Premier Sihle Zikalala. Picture: @sziks/Twitter
DURBAN – The KwaZulu-Natal executive council, led by Premier Sihle Zikalala, has called for the procurement legislative framework to be reviewed following a Supreme Court ruling on broad-based black economic empowerment (BBB-EE).
In a ruling this week, the Supreme Court of Appeal declared that the preferential procurement regulations of 2017 were invalid and set them aside.
The ruling prevents government from applying pre-disqualification criteria – such as BBB-EE in public procurement.
The Supreme Court has ruled that former Finance Minister Pravin Gordhan acted outside his powers by promulgating the preferential procurement regulations in 2017.
However, the KwaZulu-Natal executive council is not happy with the court’s decision saying it weakens government’s agenda of radical economic transformation.
Spokesperson Lennox Mabaso said: “The judgement is creating an element of doubt on the BBB-EE and also its application. Hence it is saying engage local government on the matter and where possible advance and support an effort to challenge the judgement.”
At the same time, the Black Business Council has urged National Treasury to appeal the ruling in the Constitutional Court.
