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Polity
Published: 13 Sep 2003
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| Public Works looking into empowerment credit system | |
| Fed up with the practice of "fronting", the Department of Public
Works announced the creation of an "empowerment credit system" to
guard against such practices. Public Works Minister Stella Sigcau said at a parliamentary media briefing that the department gave preference to previously disadvantaged people but this practice was abused by companies that practised fronting. "The good intentions of the department have in some cases been abused through practices such as fronting, which are costly to government". She said the credit system would monitor actual performance of contractors and consultants on contracts. "Credits will be given to contractors and consultants based on actual performance rather than on promises that were traditionally made when tendering". Companies could earn credits for black economic empowerment, empowerment of women, youth and disabled, community development, social responsibility programme, learnership and bursary principles. These credits can then be used to help secure a contract and more credits can be earned through future performance. Deputy Director General Lydia Bidi said this system would make it easier for the department to verify whether a company did indeed meet all the necessary requirements. Sigcau also said that the department was hoping to create over one-million jobs in the next five years through the extended public works programme (EPWP). The EPWP was unveiled early in the year and seven per cent, or R321-million, of her department's 2003-04 budget of R4,47-billion was earmarked for the programme. She said they hoped to create 650 000 jobs in projects dealing with infrastructure and another 145,000 jobs in the environmental sector. Labour intensive employment for the social and economic sectors would make up the targeted one million jobs. The main aim of the EPWP was to create jobs and alleviate poverty, invest in social infrastructure and provide extensive training. The projects would develop and support small business by circulating resources within communities, and help create capacity for maintenance. – Sapa. |
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