31 March: COVID-19 Communique: Business for SA

Dear Colleagues

As promised, herewith links to documentation relating to a joint initiative of business organisations in the country, known as Business for SA, set up as a collective response by Business Organisations,  to the impact of the COVID19 pandemic. Business for SA works closely with Government and many of the Workstream leads are active in the National Command Centre with Government.

http://www.cesa.co.za/uploads/Business_for_SA_slides_Additional__29Mar2020.pptx

http://www.cesa.co.za/uploads/Business_for_SA_COVID-19_Steerco_29032020_V1.pptx

http://www.cesa.co.za/uploads/Correspondence_on_procurement_dates_due_to_National_Lockdown.pdf

CESA is a member of BUSA, who are one of the organisations actively involved in the Business for SA initiative and as we get more information we will be relaying these on developments that emanate from this National initiative to members and simultaneously making these available on our website for broader sharing with our Industry Partners.

The above slides (entitled ‘Business for SA…..’) show the structure and the issues that will be monitored through the Project Management Office (PMO) which has been established and run by companies offering their services on a pro bono basis. Member companies who have  spare capacity that they would like to volunteer on a full-time basis are encouraged to do so.  In addition, you are also invited to raise issues that may have an impact on the Macroeconomic Workstream, which is already factoring in the effects of the downgrade post the corona virus lockdown and the fact that the Minister of Finance has already announced plans to approach the IMF for assistance, according to the Sunday Times 29 March 2020. One such example, which CESA will be sharing, is the financial impact of construction site stoppages for the lockdown period and liabilities that will have to be resolved with Public Sector clients that may arise from standing time claims. We already have information on the UIF process which will be shared in the next edition of this series of Communiques and will be getting more on the processes relating to the Solidarity Fund mentioned in these slides which will too be included in subsequent Communiques.

What you should be aware of is that the PMO are conducting all forms of scenario analyses, which assist in providing Government with more insights on the issues arising from the effects of the Covid-19 pandemic. It has become apparent that there is a great likelihood of the lockdown being extended to last up to two months, in addition, our GDP growth is likely to be significantly lower than projected and unemployment is likely to rise by another 4 million people as a result of the dual economic impact of both the Covid-19 lockdown and the recent downgrade by Moody’s.

It is our intention to secure discussions with key National Departments and SOE’s to determine the measures they will be taking to ensure that current awarded projects continue and that payments are processed timeously. Furthermore, we will investigate whether there is any possibility of awarding any projects where tender processes have been completed, as is the case with many SANRAL projects, so that successful companies can commence work during the current lockdown conditions, notwithstanding a directive which has recently been issued by National Treasury to all Public Sector Entities, that all tender processes be suspended for the lockdown period until further notice. (See Attached as “Correspondence on Procurement Dates due to National Lockdown”)

Kind Regards

Christopher (Chris) Campbell Pr. Eng.

Chief Executive Officer