Gregory Mofokeng, secretary of the Black Business Council in the Built Environment (BBCBE), shook up the 2012 Public Private Infrastructure Forum with his presentation on the lack of black-owned companies in construction and the unfair treatment thereof.
The BBCBE is especially concerned with the grading system of the Construction Industry Development Board (cidb). Only 6% of grade 9 companies are black-owned and most tenders will be awarded to this group. The BBCBE believes that infrastructure projects are ‘packaged’ to benefit those companies on the cidb grade 7 to 9 system. “If the cidb grading system is addressed, black businesses can get a share of the R844 billion infrastructure pie as proposed by national government,” said Mofokeng. “We must risk being unpopular by speaking out even though the powers that be don’t like to hear it. Procurement and BEE processes, among government and parastatals, have to be properly checked.” The Presidential Infrastructure Coordinating Commission (PICC) has identified projects in South Africa valued at R3.2 trillion, of which R844 billion has been approved and budgeted until 2014. The bulk of this spend will be aimed at the construction and/or rehabilitation of dams, roads, ports and harbours, education (schools and universities) and hospitals, as well as rural development. According to the BBCBE, it has been three years and three ministers later and yet regulations to improve the lives of black contractors have still not been implemented. The organisation strongly feels that black contractors are being neglected. “We need black-owned engineering firms to challenge the established white ones,” Mofokeng reiterated. “Billions were spent on the 2010 World Cup stadiums but only one 100% black-owned company was involved in this development – that of the Loftus Stadium upgrade.”Mofokeng further states that joint ventures with white-owned companies and black-owned companies should proceed with caution, whilst the Department of Public Works should reclaim its mandate and get “its house in order”.
“Black business however is ready to partner with government to ensure the successful implementation of infrastructure development and address the issues of previously disadvantaged industry participants,” he concluded.Infrastructure News editor
Gregory Mofokeng, secretary of the Black Business Council in the Built Environment
