The following speech was delivered by City of Cape Town Executive Mayor, Patricia de Lille, at a briefing session on the community-based vendors standard operating procedure held at the Subcouncil 11 chambers in Gugulethu today, 11 May 2016
Mayoral Committee Members; Subcouncil 11 Chairperson, Councillor Mzuvukile Nikelo; councillors; Director: Supply Chain Management, Basil Chinasamy; Subcouncil 11 Manager, Kayise Nombakuse; City of Cape Town staff; community vendors; ladies and gentlemen.
Good morning, goeiedag, molweni, as-salaam alaikum, shalom.
Our Supply Chain Management Policy states that: ‘The Director: Supply Chain Management may request quotations directly from community-based vendors in a specific area or from a specific community for the procurement of goods and services for amounts less than R30 000 (including construction works)’.When goods and services are sourced from service providers outside of the ward or subcouncil, this creates an uneven spread in the creation of and access to economic opportunities in the city for these enterprises.
We learnt that financial strain is placed on community-based suppliers to comply with mandatory legislative requirements.
We wanted to afford the smaller companies/individuals an opportunity to provide services.
In order to address this, the City has drafted a standard operating procedure (SOP), providing a step by step guide on how small businesses can access such opportunities.
It includes what they need to do to ensure that they are compliant with the City’s Supply Chain Management Policy.
The standard operating procedure has been circulated for comment among subcouncils and ward committees, and last week it was signed off by the Speaker.
We are very excited about this initiative because we know that it is direct investment into our communities.
Each contract represents meals on the family table, school fees being paid, and travel money for those in the family.
By investing in communities in this manner, we hope to help address some of the social ills that are linked to poverty and unemployment.
The SOP will also require contractors to make use of local labour through our Expanded Public Works Programme database.
The identified services that the City will require from the contractors will include, but not be limited to:
- cleaning and waste removal
- laundry and hygiene
- general maintenance
Subcouncil managers will invite local vendors to submit their applications within and register on the City of Cape Town’s database, and those who are already on the database will be maintained as well.
Should they be awarded a contract in their ward or subcouncil, they will be required to employ local labour from the Expanded Public Works Programme database in the sub council.
The subcouncil will have an oversight role, along with the various line departments who are using the service providers.
The vision here is to level the playing field, but also to get to a position where the person running a cleaning or construction project in a neighbourhood is someone from that area.
It helps build a sense of pride in your community and your surroundings when you have a direct hand in uplifting the area, whether it be a cleaning or small construction job.
More importantly, it brings a greater sense of financial security which in turn unlocks other opportunities for the contractor.
Job creation is one of our single biggest challenges and redress is one of main priorities.
For this financial year, the number of B-BBEE service providers who have conducted business with the City so far is 2 796. This equates to 84,2% of the overall number of service providers used.
A total of 177 660 purchase orders were issued to B-BBEE vendors, which equates to 93,75% of the total and the spend is R11,7 billion, which is equivalent to 92,3% of our total expenditure for the period.
This underscores our commitment to ensuring that we use all levers within government at our disposal to create opportunities which will redress the wrongs of the past.
If we are afforded opportunity to govern in the new term, we will continue to investing in an environment for job creation through initiatives such as this to ensure freedom, fairness and opportunities for all residents.