Small business can't afford 'to pay the bribe price': Zulu

13 August 2015 - 17:11 By RDM News Wire

Corruption in procurement was killing small businesses as their bids were overlooked by procurement officials as these enterprises could not afford “to pay the bribe price”‚ Small Business Development Minister Lindiwe Zulu said at the Procurement Indaba held in Durban. “One of the key things we must address if we want to build thriving and sustainable businesses is to confront the issue of procurement corruption head-on.“Having said that‚ however‚ we must caution against painting the public service as inherently corrupt. Indeed there are a few bad apples‚ but the vast majority of our public servants are people of integrity.”When some small suppliers did get opportunities it was largely on condition they pay a bribe. “This is unsustainable for small businesses because‚ in essence‚ they are made to pay tax twice - an official tax to SARS and plastic bag tax.”Small businesses had been historically shut out as a result of bureaucratic and costly procurement practices which favoured large suppliers. By failing to create a level playing field‚ smaller suppliers were excluded from procurement opportunities.She said that government‚ the private sector and other relevant stakeholders carried a responsibility to stimulate and support the growth and sustainability of the co-operative and small business sector.“Together‚ we must address lack of business opportunities in both the public and private sectors. We must proceed from the premise that supporting small businesses and co-operatives is not a philanthropic gesture on the part of either government or big business. In fact‚ it is in our collective interest to help grow and sustain small businesses.”The growth and sustainability of big business‚ she said‚ depended on a strong small business sector‚ both as consumers and suppliers. An inclusive economy that benefited all was also a guarantee for the social stability that was required for business to flourish.“With‚ at least 42% of South Africa’s national budget spent on the acquisition of goods and services‚ South Africa cannot afford to squander the opportunity this investment affords to support economic recovery‚ and to ensure that all SMMEs (small‚ medium and micro-sized enterprises) benefit in the growing of the country’s economy”‚ she said.The Department of Small Business Development had identified procurement opportunities for co-operatives and small enterprises that should be unlocked throughout government spheres.All economic-cluster departments (both national‚ provincial and local)‚ government agencies and state-owned enterprises would negotiate and sign transversal agreements with the department to ensure SMMEs had access to these opportunities‚ she said.Zulu encouraged local municipalities to ensure that their procurement strategies explicitly recognised the significant benefits of procuring from local small businesses when tendering for goods and services without compromising their legal stipulations and quality of the products and services procured.“Public sector procurement at provincial and local government should have local economic development strategies that take into account the needs of the existing local economy and inform procurement strategy based on a comprehensive analysis of spend”...

There’s never been a more important time to support independent media.

From World War 1 to present-day cosmopolitan South Africa and beyond, the Sunday Times has been a pillar in covering the stories that matter to you.

For just R80 you can become a premium member (digital access) and support a publication that has played an important political and social role in South Africa for over a century of Sundays. You can cancel anytime.

Already subscribed? Sign in below.



Questions or problems? Email helpdesk@timeslive.co.za or call 0860 52 52 00.