NAPE will assist its clients to ensure that the BBBEE strategy as envisaged in the BBBEE Act and the proposed DTI strategy document is implemented in a manner which will be to benefit to all South Africans.

However, there are aspects of the proposed strategy as presented in the DTI strategy document tabled in Nedlac in March 2003 which require clarification and elaboration.

Some interesting concerns over undermining essential national objectives
There is considerable concern that, through misunderstanding or otherwise, one essential national objective (Black Economic Empowerment) could seriously undermine another equally essential national objective, (namely, job creation and job retention.)

Currently, due to a lack of clarity and finality in the construction and application of the scorecard in the government procurement process, especially in manufacturing and construction sectors, a great reliance on ownership as the sole criteria for awarding contracts is being experienced. Fronting has become widespread and, as a result, many domestic manufacturers and construction concerns are severely prejudiced in the tendering adjudication process.

In order to ensure that job creation and retention is not jeopardised in the tendering process, the BBBEE scorecard and local content should carry equal weighting when consideration is given to the awarding of preference points by government and parastatal tender adjudicators

For example, if the preference weighting for black empowerment and local content were equal, a BEE company that might be intending to import most or even all inputs for fulfilling a government contract might score very highly through its BEE scorecard, but would score low or even no preference points in respect of local content. Conversely, a local manufacturer could score highly on local content, but having a poor BEE scorecard, might receive few or no points in respect of empowerment. Those companies with both favourable scorecards as well as a high degree of local content would then score the highest in the awarding of preference points, thus promoting both essential national objectives.

Methods for the certification and verification of scorecards is essential
The method by which government intends to ensure that the scorecards of enterprises are, in the first instance, verified and certified as acceptable in terms of target levels and in establishing a baseline for future periodic measurement of progress by enterprises in their target implementation process is of vital importance.

The need to finalise the strategy at the earliest opportunity
The DTI's initial BBBEE strategy document has been under consideration for more than a year. During this time, the lack of clarity in respect of the implementation of the strategy, the scorecard system and criteria for the awarding of preferences in government tendering has resulted in questionable practices by some government departments, particularly at local levels.