City's Procurement Policy Brought Back in Line with National Laws

This reverses the requirement introduced by former Mayor Nomaindia Mfeketo on 17 June 2004 that any companies wishing to bid for city tenders must have a 30% black ownership component to be eligible.

This decision comes after a directive from the National Treasury stating that all exclusionary measures of this kind must 'be reviewed and corrected'.

The Treasury has stated that according to the Office of the Chief State Law Advisor "any bid condition that will exclude certain categories of potential bidders from bidding for contracts is unconstitutional".

The City also sought an independent legal opinion on the matter which subsequently confirmed that Alderman Mfeketo's change to the procurement policy was ultra vires for this reason.

The change back to a points credit system only for black ownership will ensure that the City can continue to promote empowerment of previously disadvantaged individuals without excluding any bidders on the basis of race.

Issued by:
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City of Cape Town
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Robert MacDonald
Mayoral Spokesperson
City of Cape Town
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