Durban - The ANC in eThekwini has lashed out at critics for “fear mongering” over economic transformation plans introduced by eThekwini mayor and regional party chairperson, Zandile Gumede.
ANC regional secretary, Bheki Ntuli, said economic transformation policies implemented in eThekwini Municipality were aligned with national ones.
He was responding to economist Bonke Dumisa, who warned the municipality could be dragged to court if it failed to properly implement “politically convenient decisions” – a reference to Gumede’s economic transformation plans.
“For an economist to take a swipe at the proactive move...by chairperson Gumede is very concerning and disappointing,” Ntuli said.
The debate on economic transformation had to be in the context of uplifting the poor, which was the “very idea behind the policy”.
“The eThekwini Municipality and mayor Gumede must be hailed for taking this bold step in the right direction, not hindered by fearmongering, uncertainty and pessimism.”
Ntuli explained that “radical economic transformation” was a national undertaking, announced by the president in his State of the Nation address in 2015, last year and again this year.
The new plan places strict criteria on those bidding for tenders above R30-million.
It includes an obligation on them to empower smaller contractors and ensure local communities benefit from the project.
The measures are also in line with new amendments to the Preferential Procurement regulations, which come into effect from April 1.
The regulations will allow all levels of government and parastatals the freedom to choose to apply pre-qualifying criteria to advance certain designated groups when awarding tenders.
Critics, including Dumisa and the Building Construction and Allied Workers’ Union, have raised concern over possible influence over the selection of subcontractors.
Others, like the South African Women in Construction and the Durban Chamber of Commerce and Industry, have welcomed the plans, saying they would encourage bigger companies to share their spoils with smaller firms.