SAA’s procurement policy illegal, say lawyers
The national carrier has been warned it could face legal action by suppliers, and advised to withdraw any tender involving its procurement policy
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, which 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.Tlali said: "The opinion is privileged advice for the benefit of the board. We are not in a position to comment on it. "It [the legal opinion] was not meant for the consumption of external parties." The Treasury and the Department of Tra...
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