Finance Minister Enoch Hadongwana acknowledged that the government had failed to transform the black economy due to corruption and the nature of the implementation of Black Economic Empowerment Policy (BEE).

Godongwana spoke Friday at the annual summit of the Black Business Council in Johannesburg.

The minister called the growth of corruption in procurement one of the biggest problems facing BEE. He also told delegates that his department would deal with overdue payments to small businesses doing business with the government.

Hodongwana also called on the BBC to participate in and comment on the new BEE policy, which is planned to be amended soon, through NEDLAC. He blamed corruption for the failures facing black economic transformation to date.

Gadongwan says critics will continue to attack BEE policies as long as corruption remains. He says corruption and crime are undermining the economy.

New bees and a public procurement bill

Hodongwana is urging the BBC to take part in the process and discussions of a new bill on the inhome and public procurement. “There was an attack on the empowerment of blacks, and in 2009 to this day we have thrown the ball. We threw the ball, but our own people in this space did not help us. Corruption in procurement has become a huge problem. And so give an interesting tool to those who oppose BEE, and everyone now equates BEE to corruption.

Gadongwan says the government needs to help small businesses and build the economy within a sustainable macroeconomic framework. He tells delegates that the cost of debt service is eroding the cost of important socio-economic projects.

“The nurse tells me: you know, Minister, that this section is new. It’s supposed to be an oncology department, but we can’t make a commitment because we need 150 nurses. We can’t hire nurses because it’s freezing. That may not be right. We have 34 police stations where there is no night shift. That may not be right. We need to change the composition of these costs to address these real issues and make sure there is a limit to the growth of this trillion in debt service costs because it is taking out these costs. ”

A bill on public procurement and PPPs is expected to be introduced in parliament this year. This will ensure transparency in the procurement of goods and services from businesses by the government.

Hodongwana encourages organized enterprises, especially black enterprises, to provide materials and recommendations before they are presented.

VIDEO: The first day of the BBC summit is dominated by the empowerment of black business:

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