Business report

June 15 2011 at 06:02am

By Slindile Khanyile

Listed drug firms will soon benefit if they are empowered when bidding for state tenders.

This is because health-care procurement has been aligned to all the elements of broad-based black economic empowerment (BEE) following the publication of regulations of the Preferential Procurement Policy Framework Act by the National Treasury last week.

Previously, these companies’ empowerment credentials did not matter because procurement was linked only to equity, which is one element of the BEE scorecard.

While these public firms have empowerment shareholders, the government did not consider these as it was felt that shareholding changed hands regularly on the stock exchange.

But the regulations that are expected to come into effect by December say the points scored by a tenderer in respect of BEE contribution must be added to the points scored for price.

Bidding firms will have to submit their broad-based BEE status level verification certificate or a certified copy thereof, substantiating their rating, except for those that are exempted. In the event that two or more tenders have scored equal total points, the successful tender must be the one scoring the highest number of preference pointsRead more.