86% of Cape Town's vendors BBBEE compliant - Ian Neilson

Deputy mayor says city issued a total of 196 339 purchase orders in the financial year ending June 2014

City's latest vendor statistics show commitment to transformation, empowerment

The City of Cape Town's Supply Chain Management report for the year ending June 2014 shows that more than 86% of our purchase orders were placed with BBBEE-compliant vendors. We are making great strides as an opportunity city, dedicated to bringing redress through empowerment. Read more below:

As an administration that is committed to providing opportunities for our residents, the City of Cape Town issued a total of 196 339 purchase orders in the financial year ending June 2014, i.e. about 1 000 purchase orders per working day, to vendors who were compliant with the Broad-Based Black Economic Empowerment (BBBEE) legislation. 

This equates to more than R10,77 billion or 87% of our total purchase orders issued for this period.

‘Broad-based black economic empowerment, which is to the benefit of the masses and not only an elite few, is a vital tool that must aid us in transforming our local and national economy. As an opportunity city, we will continue to place a strong focus on transformation through including local suppliers who are BBBEE-compliant and also through emphasis on the inclusion of local content in our supply chain,' said the City's Executive Deputy Mayor, Alderman Ian Neilson.

The number of BBBEE service providers who conducted business with the City over the same period numbered 2 856. This equates to 72% of the overall number of service providers used.

Furthermore, a total of 3 563 tender submissions were received during the 2013/14 financial year. From the 99 appeals lodged against the award of tenders, only two successful appeals were upheld by the Appeals Authority.

‘The statistics indicate once more that there remains a high degree of accuracy in the City's general Supply Chain Management output, in line with our commitment to being a well-run city. It also demonstrates that there is a realistic level of public satisfaction with the City's tender processes,' said Alderman Neilson.

In this past financial year, 24 279 Requests for Quotes were advertised on the City's website and 114 742 responses were received to our advertised Requests for Quotations. The City produced 227 828 total purchase orders.

The City also continues to deal with suppliers who abuse the City's Supply Chain Management Policy through fraud, corruption, fronting, or failure to deliver adequately on contracts. As at June 2014, there were 71 suppliers on the City's list of restricted suppliers who may not do business with the City.

Statement issued by Alderman Ian Neilson, Executive Deputy Mayor of the City of Cape Town, July 21 2014

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