The informal business sector support programme (IBSSP), initiated by the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (DEDEAT), working with the Eastern Cape Development Corporation (ECDC) during the 2021/22 financial year, has been suspended due to a High Court ruling.
The programme was intended to support the strata within the informal enterprise community, which is generally less supported.
The programme, which was expected to provide much needed equipment to successful applicants, at a cost of up to R30 000, was planned to be implemented during the financial year ending March 31, 2022.
During the procurement process for the acquisition of tools and equipment, requested by the successful applicants, a notice was issued by the National Treasury, applying a moratorium on all public sector procurement with a rand value of R30 000 and more.
This moratorium was necessitated by the outcome of a High Court case ruling, which declared the broad-based black economic empowerment (BBBEE) regulations related to preferential procurement, applicable in the public sector, as invalid.
Faced by this ruling, the National Treasury suspended all affected procurement, with effect from February 16, 2022, until a ruling on further court proceedings regarding the validity of BBBEE and preferential procurement policy regulations is issued.
The Informal Business Sector Support Programme roll-out was unfortunately affected by this moratorium as bulk procurement from various service providers amounts to more than R30 000.
It is the intention of both DEDEAT and the ECDC to resume this programme as soon as the moratorium is lifted.
The department and the ECDC have extended an apology to all the successful applicants of this programme whose requests have now been delayed.
Due communication shall be issued as soon as the moratorium is lifted.
