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Cape Town – Corruption in procurement is killing small businesses, Small Business Development Minister Lindiwe Zulu said on Thursday at the Procurement Indaba in Durban.
“One of the key things we must address if we want to build thriving and sustainable businesses is to confront the issue of procurement corruption head-on.”
She said big companies have for a long time managed to crowd out small businesses in the procurement process through their financial muscle, cash reserves and economies of scale.
Now, when some small suppliers get opportunities, it is largely on condition that they have to pay a bribe, said Zulu.
“This is unsustainable for small businesses because, in essence, they are made to pay tax twice – an official tax to Sars (the South African Revenue Service) and plastic bag tax.”
She encouraged local municipalities to ensure that their tender strategies explicitly recognise the significant benefits of procuring from local small businesses. – Fin24