ANC slams DA’s plan to scrap BEE as ‘rollback of 300 years of struggle’

The African National Congress (ANC) has hit back at co-governing partner the Democratic Alliance’s (DA’s) proposal to replace Broad-Based Black Economic Empowerment (BB-BEE).

In a statement on 11 November, the ANC called it an attempt by the second largest party “to undermine the gains of our struggle, an attempt aimed at rolling back over 300 years of subjugation of our people.”

Yet, the Deputy President said that they are open to a review, with possible ‘tweaks’ to address the shortcomings.

The DA is one of the country’s most vocal critics against BEE, which has been in place since the early 2000s, arguing that it has become a conduit for state-sponsored corruption, theft, and fraud, ulitmately failing to reform the economy.

The DA’s proposed Economic Inclusion for All Bill aims to do away with BEE legislation and, in its place, institute a new public procurement system.

“BEE is nothing but state-sponsored fraud and corruption. It’s making people poorer, and we have evidence of that,” said the DA’s Ivan Meyer. 

The bill is an amendment to the Public Procurement Amendment Act of 2024, to repeal race-based preferential procurement provisions and replace them with a needs-based empowerment system that is not race-based. 

The new proposed system is based on three components for procurement: value for money, economic inclusion and disqualification criteria for those who are implicated in fraud and corruption. 

Meyer added that the policy and the goal of promoting an inclusive economy cannot just be abolished; it needs to be replaced.

However, the ANC, the largest party in the country with 159/400 seats in the National Assembly, accused the DA of wanting to “undermine the gains of our struggle.”

Calling it “an attempt aimed at rolling back over 300 years of subjugation of our people,” the ANC claimed that the party has “pain when they witness the development and transformation of black people.”

“We will not relent until the legacy of colonialism and apartheid is erased in the economy, employment and social dynamic.”

“We will not capitulate, but the dignity of our people remains the centre of our daily prosecution of our struggle,” added the ANC.

‘Open to tweaks’ – Paul Mashatile

Deputy President Paul Mashatile says there’s no need to scrap existing BEE laws, arguing that a review and amendments can address weaknesses.

Responding to the DA’s proposal for non-race-based procurement legislation in Parliament, Mashatile said government reforms under Operation Vulindlela were already aimed at driving growth and job creation.

He added that the Department of Trade was reviewing BEE policy to make it more inclusive: “To the extent that there may be weaknesses, let’s correct that… There’s no need to ditch the legislation.”

Mashatile said all parties in the Government of National Unity were encouraged to support the review, adding: “You don’t have to throw away the legislation — you review it, amend it, make it better.”

The DA welcomed the comments that they would be open to tweaks.

DA Deputy Chief Whip Baxolile Nodada said in a subsequent statement that BEE has been “captured by political insiders” and failed to create broad economic opportunity.

He reiterated the DA’s call to replace BEE with its proposed Economic Inclusion for All Bill, which introduces a procurement scorecard based on individual means and needs to ensure fair access and value for money.

“The DA’s alternative is the only plan before Parliament to truly lift millions out of poverty,” Nodada said.