Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Sector CodesLegal Sector Code, 202434. Preferential procurement and supplier & enterprise development scorecard |
| 34.1. | As a general principle, section 217(1) of the Constitution provides that: |
“When an organ of state in the national, provincial or local sphere of government, or any other institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective.”
| 34.2. | In addition, section 217(2) of the Constitution provides that: |
"sub-section (1) does not prevent the organs of state or institutions referred to in that subsection from implementing a procurement policy providing for:
| 34.2.1. | categories of preference in the allocation of contracts; and |
| 34.2.2. | the protection or advancement of persons, or categories or person, disadvantaged by unfair discrimination”. |
| 34.3. | Skewed procurement from both public and private sector which prejudices black legal practitioners has been a major problem for black practitioners. |
| 34.4. | Having regard to the content of paragraphs 34.1 and 34.2 above, the LSC must provide for a transparent measurement or mechanism that provides for an enabling environment for the state and all its arms including, but not limited to, state-owned enterprises as well as private sector entities, where applicable, to procure legal services from black legal practitioners, in line with the provisions of section 217 (2) of the Constitution. |
| 34.5. | In this LSC, due to the nature of the legal profession and the objectives of the LSC, there are 2 (two) categories within the enterprise and supplier development element – preferential procurement and enterprise development. This statement therefore seeks to specify the measurement for preferential procurement and enterprise development programmes that will benefit all black qualifying legal practitioners in the legal profession. In the Specialised Scorecard, however, there are 2 (two) categories being preferential procurement and supplier development. |
| 34.6. | In addition, this LSC: |
| 34.6.1. | defines the principles applicable when calculating B-BBEE procurement spend, and supplier and enterprise development spend; and |
| 34.6.2. | indicates the formulae for calculating the individual criteria specified in the preferential procurement and supplier development scorecard. |
| 34.7. | The table below represents the criteria for deriving a score for preferential procurement, supplier development and enterprise development and/or programmes for all designated and qualifying legal practitioners. |
