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THE consultative committee of Paarl's Central Business District (CBD) is in the process of finding Black Economic Empowerment (BEE) partners for the urban renewal project.
The committee will drive the process that will see the core CBD transformed into a new and vibrant shopping and recreational area.
The committee was formed in April and is a partnership between a group of property owners and the Drakenstein town council.
The members have agreed on procedures to follow to ensure that the BEE component is given the maximum possible exposure to potential subscribers in Drakenstein.
They have to ensure that its selection of BEE partners is done in accordance with the regulations established by National Treasury.
According to these all municipalities must adopt a Code of Good Practice with regard to Broad Based Black Economic Empowerment (BBBEE) when they jointly undertake projects with the private sector.
The main purpose of BBBEE is to ensure that historically disadvantaged groups are included in every aspect of the project so that the benefits extend to a wide range of people and not just a few select individuals or businesses.
The BEE partners will acquire their shares in a company that will be formed by the property owners.
It is the company that will ultimately take charge of this phase of Paarl's urban renewal, after all the major legal and technical tasks have been successfully completed.
That is not where BEE stops, though. The company is also bound by the legislation on PPP's to set targets for involving BEE partners at the management and operations level of the project.
The search for BEE partners will therefore include companies that can supply a range of goods and services during and after the construction phase of the project.
Council's representatives on the committee are of the view that there is enormous scope for Drakenstein companies to play a role in this important project, especially if they have adopted BEE practices.
The process of finding BEE partners
The finding of BEE partners is technically the task of the property owners, but council's representatives on the committee will have input into the process.
The committee feels it is important that the final decision is seen as having been made in the best interest of the project and the development objectives of Drakenstein's IDP, specifically job creation and economic development.
The procedures developed by the Committee are therefore aimed at facilitating the process of selecting BEE partners and finding an effective method of satisfying Council's criteria as well as Treasury's regulations.
In summary, the procedures for selecting BEE partners will be as follows:
* Identify potential partners in a number of sectors in Drakenstein through research and notices on radio and in the press. The sectors should represent the diverse groups of Paarl and Drakenstein.
* The property owners meet with the prospective BEE partners to discuss the offer to acquire equity and to participate in the management and operations side of the project.
* On the basis of the information obtained on companies, consortiums and individuals an evaluation sheet will be prepared and each assigned a score of rank.
* The property owners present their findings and shortlist to the consultative committee with a brief report on the reasons why they are nominating particular companies and individuals for partnership.
* The consultative committee discusses the nominations and, through consensus and negotiation, reaches a decision about the final selection of the partners.
* The property owners will present a formal offer to those partners who have been selected and discuss financing arrangements with them in the case of acquiring equity and their role in the case of management and operational positions.
* Once all the necessary legal provisions are compiled with, the names of the partners are announced in the local and provincial media.
Criteria to guide property owners
The Council's representatives on the Committee have also proposed that a set of criteria be adopted to guide the property owners in the selection process.
The criteria should be applied to all prospective partners to develop a preference scale from most favoured to least favoured candidates for BEE.
Among the criteria that will be used for selection are:
* That they be drawn from the widest possible spectrum of society in Paarl and Drakenstein. This means the established business community (including large, medium and small enterprises), traders' organisations, trade unions, transport operators, farm worker associations, non-governmental organisations, religious institutions, civic associations, youth groups, bodies representing the disabled, sport bodies, women's organizations and community trusts;
* That the companies or individuals selected have a track record of involvement in social /economic upliftment of the local community;
* That they have a history of participation in local activities
* That they demonstrate their capability to add value to the project through either knowledge of local issues, the local economy, skill, expertise, social networks or the manufacture of products;
* That they are familiar with the development plans of DM including its IDP;
* That they have no criminal record and are free of any charges of bribery and corruption. An exception here would be those persons who, prior to 1994, were convicted of political offences;
* That they have not been prohibited from doing business with the public sector presently or in the recent past;
* That they agree to appear before Council or the general public to answer any questions about their business affairs or their personal backgrounds;
* In the case of established or formal business or non-profit organisations, that they are able to provide proof of good standing with respect to their tax status with SARS.
The procurement manager's office in Drakenstein will support the committee in its effort to verify the information provided by the prospective partners (companies and individuals).
As far as it is feasible, the scorecard developed in the Code of Good Practice for PPP's will be used in conjunction with the criteria to assess the BEE levels of engagement in the projects that are proposed by the property owners.
Interested persons and companies should contact the Municipal Manager at 807-4500. |