Supplied
KwaZulu-Natal Transport MEC Willies Mchunu. File photo: Supplied
Durban – Marginalised black contractors would realise their economic potential only if the government gave them priority when awarding contracts, Transport MEC Willies Mchunu said on Thursday.
He said that without government support, the Vukuzakhe Emerging Contractors Association, which is an association of black contractors in KwaZulu-Natal, would never be economically empowered.
Mchunu made these comments after signing a memorandum of understanding, which promised more government contracts to Vukuzakhe, in Durban.
The memorandum came on the heels of the South African Federation of Civic Engineering Contractors withdrawal of legal action against the department. The federation had asked the Pietermaritzburg High Court to stop the department awarding all its road maintenance and construction contracts to Vukuzakhe.
Mchunu said the court battle was withdrawn after the federation was made to understand the need for black empowerment.
“We told the federation that the constitution empowers the department to come up with policies that correct the imbalances of the past,” he said.
He said by favouring Vukuzakhe, the department had not left other contractors out of its business deals.
Vukuzakhe has 35 000 contractors, of which 21 are grade 6 and qualified to work on projects up to the value of R13-million.
Vukuzakhe was established in 2003 as a group of 32 companies by the transport MEC of the time, S’bu Ndebele.
In 2010 it was registered as a section 21 entity.
“We are also proud to indicate that we have three contractors that have attained grade 7 and are now eligible to handle work up to R40m. These are contractors who have grown into solid companies that can stand on their own in a highly competitive market,” Mchunu said.
He said Vukuzakhe members would receive training and business opportunities from the department.
“This (the memorandum of understanding) is the first step with many miles to go. We are still very far from saying black people have the economy in their hands,” he said.
Vukuzakhe chairman Fred Mfeka said: “We cannot run with established contractors when we are still babies. The big guys are already experienced. There should be a point where emerging contractors are given opportunities to develop themselves.”
The federation’s chief executive, Webster Msibi, said the federation had dropped the court action after it had reached some agreements with the department which, he said, would be revealed in due course. – The Mercury
