KZN Premier ‘worried’ about apex court ruling to halt all tenders

The KwaZulu-Natal government said it was concerned over the National Treasury’s decision to suspend tenders following the recent Constitutional Court judgment which declared the 2017 Preferential Procurement Regulations invalid.

Two weeks ago, the Concourt ruled in favour of lobby group AfriForum, which had challenged the policy. Premier Sihle Zikalala told the media on Sunday that his government was concerned at the “paralysis” and “backlog in the supply chain” the ruling would create. The policy for the tender process gave first preference to blacks, women, people living with disability and former freedom fighters.

“On behalf of the provincial government, we wish to state that we are concerned with the paralysis and backlog in the supply chain that this would create. It is our view that this decision amounts to a possible liquidation of the government. The provincial government, therefore, supports every effort by the national government to speedily resolve this matter,” said Zikalala.

He said the KZN government would be engaging with the national government in this regard, because it had always been the government’s view “that transformation of the economy through legal instruments such as the Preferential Procurement Regulations was a pre-condition for the creation of an inclusive economy that will serve the interests of all South Africans”.

The premier had called on the media to give an update on the new developments since the delivery of his State of the Province Address (Sopa) last month. Zikalala said his government’s main focus for this year would be working better and faster to prioritise economic recovery, creating jobs, improving access to water and sanitation, fighting crime, building safer communities, building the capacity of the state, social protection and human development.

He also said the government would host a growth coalition summit on the South Coast next week, saying this activity was set to bring together more than 100 company chief executives. The premier said his government’s target was to address the dismal unemployment rate since before the Covid-19 pandemic.

The premier said the green shoots of the economic recovery were beginning to surface, and since the beginning of the year Capita BPO had invested R120 million, which was expected to create about 500 jobs, while Coastal Blythedale Resort’s R800m investment would create 2 000 jobs. Nqanawe Holding, which manufactures tractors, has also invested R800m which was set to create about 200 jobs at the RBIDZ site, the premier said.

Zikalala said the Cabinet took a decision to submit key strategic projects to African Export-Import Bank (Afrexim) and asked it to fund agricultural projects, which included the Red Meat Hub (cattle abattoir, pig, goat, sheep abattoir, deboning facility, distribution centre); Grain Handling Hub (white, yellow maize, beans, soybean); Fresh Produce Hub (bulk vegetable distribution, vegetable processing and banana handling), the Dairy Hub, which incorporated raw milk tanks, a UHT facility, a distribution centre, an amasi factory and a yoghurt factory.