If a contract is awarded on the basis of colour, this inevitably leads to wasteful expenditure
19 April 2022 - 17:47
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President Cyril Ramaphosa says there must be no wasteful expenditure in employing relief funds for the KwaZulu-Natal floods. He is right, but he faces a circle that cannot be squared.
BEE regulations legalise wasteful expenditure. If a contract is awarded not on the basis of cost or effectiveness but on the basis of colour, this inevitably leads to waste.
We can debate whether this is beneficial in the larger scheme of things, but please Mr President, don’t be hypocritical. Your own laws entrench waste.
Willem Cronje, Cape Town
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: BEE laws entrench waste
If a contract is awarded on the basis of colour, this inevitably leads to wasteful expenditure
President Cyril Ramaphosa says there must be no wasteful expenditure in employing relief funds for the KwaZulu-Natal floods. He is right, but he faces a circle that cannot be squared.
BEE regulations legalise wasteful expenditure. If a contract is awarded not on the basis of cost or effectiveness but on the basis of colour, this inevitably leads to waste.
We can debate whether this is beneficial in the larger scheme of things, but please Mr President, don’t be hypocritical. Your own laws entrench waste.
Willem Cronje, Cape Town
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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