SOLIDARITY CHALLENGES NEW BEE PROCUREMENT REGULATIONS AHEAD OF MAY COURT CASE
- BEE NEWS
- Apr 23
- 2 min read
Lisa Beyers | 22 April 2026
Civil rights organisation Solidarity has confirmed it will proceed with its Constitutional Court challenge against South Africa’s Public Procurement Act, with the case scheduled for 18 and 19 May this year.
The development comes as National Treasury published new regulations under the Act, which Solidarity argues will significantly increase costs for taxpayers and undermine service delivery.
According to the regulations, state institutions must reserve 30% of all procurement for black-owned enterprises. Additionally, any business seeking state contracts must demonstrate that at least 40% of its own procurement comes from suppliers with predominantly black ownership.
Unlike previous procurement rules, non-compliance with these Black Economic Empowerment requirements now constitutes grounds for automatic exclusion from all state contracts.
Anton van der Bijl, deputy chief executive of Solidarity, questioned the timing of the regulations. “The audacity of doing this shortly before a ruling on whether the Act is fair or not is quite astonishing. These regulations will significantly increase procurement costs by narrowing the pool of suppliers available to the state,” Van der Bijl said.
He added that suppliers complying with BEE requirements would face virtually no limit on prices they could charge for goods and services, with taxpayers ultimately bearing the cost.
Theuns du Buisson, economic researcher at the Solidarity Research Institute, explained that preferential procurement prevents the state from purchasing directly from the most affordable suppliers, creating a system where middlemen profit without adding value.
“When prices are artificially inflated by adding intermediaries as additional links in the chain, this mandate is undermined. The result is that ordinary South Africans pay more for poorer service delivery,” Du Buisson said.
He cited National Treasury estimates indicating that up to 40% of public procurement is lost to fraud, inflated pricing and intermediary structures. Du Buisson described the legislation as one of the most racially discriminatory pieces introduced since 1994, claiming it effectively disqualifies white businesspeople.
Solidarity argues the case centres on constitutional principles of fairness, efficiency and accountability, with direct implications for taxes, service delivery and quality of life for all South Africans.
The Constitutional Court’s ruling in May will determine whether the Public Procurement Act and its regulations comply with the constitution.
‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’.