BEE regulation could wreak high procurement costs

July 28, 2015

The newly drafted black economic empowerment (BEE) regulations intend on awarding tender contracts on the weight evaluation of 50 per cent price of goods or services and 50 per cent satisfactory representation of BEE.

Previously the weightings were 90/10 or 80/20. According to the Institute of Race Relation (IRR) these regulations could lead to inflated prices from BEE "tenderpreneurs" and compromise the affordability of the poor only to benefit the elite.

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