Western Cape Government: Parliamentary discussion

Beverley Schäfer MPP

DA Western Cape Spokesperson for Economic Development, Tourism & Agriculture

(Subject for discussion:The Western Cape Government’s prioritisation of “tenderpreneurship” over service delivery and restoring people’s human dignity.)

The Honourable Paulsen is coming to this house to debate tenderpreneurship, a word and action tried and tested so much, both by his own leader and that of the ANC, that it now has its own official Wikipedia page!

Does the honourable member come here today, wanting to perfect it? Taking full ownership of it?

I am not sure that the honourable Member quite understands the word, otherwise he would not be using it. Because Speaker, tenderpreneurship is described as “someone politically well-connected who has got rich through a government tendering system”.

That definition does not refer to where the DA governs. Because Madame Speaker, where the DA governs, tenders are only awarded to enhance service delivery, and ultimately restore the dignity of people! For no other reason!

I want to take this opportunity Madame speaker, to educate the Honourable Paulsen and the ANC on good governance, transparent processes and accountable supply chain management in DA governed municipalities such as the City of Cape Town.

Because, more than any other entity Madame Speaker, it is at the level of municipalities where the heart of delivery takes place! Fundamentally, it is within local government that we change the lives of people and give them the dignity they deserve!

Speaker we don’t give out tenders to pals like the ANC do! DA run municipalities such as City of Cape Town ensures that there is sound, sustainable and accountable supply chain management process. The awarding of tenders are underpinned by a legal framework known as the Preferential Procurement Framework Act. It’s that simple Speaker. We ask for good services to be delivered at good prices!

But Madame Speaker let’s not throw stones here. Let’s rather focus on the facts!

  1. When the DA led coalition took over control of the City of Cape Town, it scrapped the BEE procurement rules and implemented a 10% weighting on historically disadvantaged individuals for tenders up to R500 000 and 20% on tenders above that –once again restoring the dignity of our people.
  2. Yet Speaker, when the ANC governed Cape Town before 2006 it stipulated that all companies had to be 30% black-owned so it could advance the interest of bidders with political connections. Setting the tone to creating tenderpreneurs.
  3. What did the DA do instead? We opened up the bid adjudication committee to the public, actively managed a supplier’s database and advertised all requests for quotations over R2000 on the city’s website.

AND Speaker what was the outcome of this process?

The latest city’s Supply Chain Management report for the year ending June 2014, shows that more than 86% of the city’s 196 339 purchase orders, were placed with BBBEE-compliant vendors – not tenderpreneurs, equating to more than R10,77 billion rand! Madame Speaker, once again, providing opportunity, redressing the past and restoring the dignity of people.

It is Broad-based black economic empowerment tenders which bring dignity to the lives of all our people, and not only an elite few.

According to the report, a total of 3 563 tender submissions were received during the 2013/14 financial year. From the 99 appeals lodged against the award of tenders, only two successful appeals were upheld by the Appeals Authority.

Yes, the City continues to deal with suppliers who abuse the system through fraud, corruption, fronting, or failure to deliver adequately on contracts. But as at June 2014, there were 71 suppliers on the City’s blacklist, who may not do business with them again. Yes, things sometimes do go wrong but we certainly do our due diligence!

So the facts remain. The City of Cape Town does not engage in tenderpreneurship, but rather delivers on a sound process of supply chain management in line with the strategic objective of a well-run City.

And Madame Speaker, the audit results show just that! When comparing the SA’s municipalities for the 2012/13 financial year, the City of Cape Town was named the ONLY metro in South Africa to achieve a clean audit!

Once again the DA has fulfilled a commitment to building a well-run city, delivering services and restoring the dignity of all our people.

I thank you.