SAA flying into legal headwind over procurement policy
According to a legal opinion the airline's procurement policy — that favours military veterans, rural women and previously disadvantaged youth — exposes it to legal action
SAA's procurement policy, which sets aside 30% for small businesses, is illegal and will expose the airline to legal action by suppliers, including Bidair Services, according to a legal opinion obtained by the national carrier.
The policy, which favours small, medium and micro enterprises owned by military veterans, rural women and previously disadvantaged youth, was introduced in 2015 after a board resolution taken on August 26 that year.
At the time, SAA invoked President Jacob Zuma’s 2015 state of the nation address when it introduced the controversial stipulation that set it on a collision course with the Treasury and the Department of Trade and Industry.
SAA spokesman Tlali Tlali on Tuesday confirmed the airline had obtained the legal opinion.
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