Sports

Godongwana admits government’s failure to deliver black economic transformation – SABC News

Finance Minister Enoch Godongwana has admitted that the government failed in Black Economic Transformation due to corruption and the way Black Economic Empowerment (BEE) policies were implemented.

Godongwana spoke at the Black Business Council’s annual summit in Johannesburg on Friday.

The minister has blamed increasing corruption in procurement as one of BEE’s biggest challenges. He also told delegates that his department would look into late payment issues to small businesses doing business with the government.

Godongwana has also called on the BBC to look into and comment on the new BEE policy via NEDLAC, which is set to be changed soon. He has blamed corruption for the failure of Black Economic Transformation so far.

New BEE and public procurement law

Godongwana encourages the BBC to engage in the process and discussions on the new BEE and Public Procurement Act. “There has been an attack on black economic empowerment, and in 2009 to now we’ve dropped the ball. We dropped the ball, but our own people in that room didn’t help us either. Corruption in purchasing has become a huge problem. And thus an interesting tool for those who are against BEE and anyone who now equates BEE with corruption.”

Godongwana says the government must help small businesses and build the economy within a sustainable macroeconomic framework. He tells delegates that debt service costs are undermining spending on important socio-economic projects.

“A nurse says to me, Mister Minister, this section is new. It’s supposed to be an oncology department, but we can’t commit because we need 150 nurses. We can’t hire nurses because it’s frozen. It can’t be true. We have 34 police departments that don’t have night shifts. It can’t be true. We need to change the composition of that spending to address these real issues and make sure there’s a limit to the growth of that trillion of those debt servicing costs because they’re wearing that spending down.”

The public procurement law and the BEE law are expected to be tabled in parliament before the end of this year. It will provide transparency on government procurement of goods and services from businesses.

Godongwana urges organized corporations, especially black corporations, to make suggestions and recommendations before submitting them.

VIDEO: Empowering Black Business Dominates Day One of BBC Summit:

Godongwana admits government’s failure to deliver black economic transformation – SABC News

Source link Godongwana admits government’s failure to deliver black economic transformation – SABC News

Back to top button