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Black Economic Empowerment (BEE) initiatives of the National Department of Public Works are on track and gaining speed. The Department has established a new unit that tracks progress, emphasis and impact of these initiatives on black business.

"The Department of Public Works has piloted the affirmable procurement system in the government naturally, because of the amount of products and services we procure in maintaining the R120 billion state property" said Tami Sokutu, Director-General of the Department of Public Works addressing members of the Implementation Plan Forum in Sandton, Johannesburg.

The Department is pulling out all stops in integrating policies and initiatives to develop an integrated BEE strategy and implementation of guidelines. This financial year alone, R775 million has been spent to accelerate BEE through targeted procurement programmes.

Currently, the Department has invited tenders for the Strategic Asset Management partner to come and assist the Department with the asset management function. Details of this tender and the related function will be discussed at the information session to be held on Tuesday, 3 July 20001.

R600 million has been allocated by the Department to pilot strategic project initiatives. The purpose of this programme is to fast track graduation of black contractors from sub contractor to prime contractor level, managing projects more than R5 million.

Together with these projects, there are huge opportunities offered by the Department of Public Works in repair and maintenance, property disposal and leasehold. Over the next 3 years, R1.1 billion has been budgeted for repair and maintenance of state properties. Leasehold tender procedures are being reviewed to address targeted procurement in the procurement of private leases. This will include a policy that enforces prospective tenderers to make use of Affirmable Business Enterprises property brokerage firms

"The Asset Procurement and Operation Systems (APOPS) is a direct response to the government's fiscal transformation in reducing the deficit and foreign borrowing by leveraging funds from open markets," said Sokutu.

Through this scheme the government entered into concession contracts where the private sector design, build, maintain and operate the maximum-security prisons in Bloemfontein and Louis Trichardt. From these projects R66 and R32 million has to date been paid to Affirmable Business Enterprises respectively.

"The Minister and Department of Public Works remain committed to the objectives of BEE. We are committed to accelerating BEE in support of government's socio-economic objective," concluded Sokutu.

Contact: Kgotso Tau on 082 833 9595/ 012 337 2454

Issued by: Department of Public Works, 29 June 2001