Black Economic Empowerment Essay

HOW THE SOUTH AFRICAN CONSTITUTION OF 1996, THE EMPLOYEMENT EQUITY ACT OF 1998 AND THE PREFERENTIAL PROCUREMENT ACT OF 2000 SUPPORT THE BROAD-BASED BLACK ECONOMIC EMPOWERMENT ACT, NO 56 OF 2003 SUPPORT, AS AMENDED

1. INTRODUCTION

The Broad-Based Black Economic Empowerment Act, No 53 of 2003, as amended, was adopted by the South African government to serve as a cornerstone for Black Economic Empowerment (BEE). The goal of the BEE is readdressing historical injustice and to empower all of those previously disadvantaged with the goal to advance economic development and transformation and to improve South Africa’s black empowerment policies.
According to the B-BEE legislative and strategic framework, BEE has three components namely direct form of empowerment (ownership and management control), indirect form of empowerment (preferential procurement, enterprise development and socio-economic development) and human resource development which consists of employment equity and skills development.

PREFERENTIAL PROCUREMENT POLICY FRAMEWORK ACT (PPPFA) OF 2000

As a result of the aforementioned Section 217 of the South African Constitution the Preferential Procurement Policy Framework Act was implemented to serves as a framework for the implementation of a procurement policy. The Procurement Policy can be used as an instrument for social development by providing business opportunities for disadvantaged individuals and communities and targeting and promoting access to small, medium and micro enterprises (SMMEs). By creating these opportunities we will add wealth to our country and increase social well-being.

3.1 Five Pillars of Procurements
According to the General Procurement Guidelines issued by the Government of the Republic of South Africa, to ensure proper and successful procurement it is important to apply the five pillars of Procurements namely:

 Value of Money
 Open and Effective Competition
 Ethics and Fair Dealings
 Accountability and Reporting
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