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by Kei'Yona Jordon
South Carolina Gov. Henry McMaster and German Ambassador Jens Hanefeld signed a Joint Declaration of Intent Thursday to create a formal economic partnership between South Carolina and Germany.
Gov. Henry McMaster’s executive order restricting state agencies from awarding business contracts based on race is prompting a debate over fairness, opportunity and the future of minority-owned businesses in South Carolina.
Under previous law, agencies were required to give a portion of their budgets to minority-owned businesses. The South Carolina Department of Transportation, for example, had to award at least 5% of certain contracts to minority-owned businesses, while other agencies were required to spend 10% of controllable budgets through minority firms. The executive order restricts all race-based mandates and quotas, at least for now.
PREVIOUS STORY|Minority business leaders express concerns over new SC executive order on state contracts
Democrats and minority-owned business owners expressed disappointment, while Republican lawmakers vowed to draft bills in the next session to support the order.
Rep. Hamilton Grant, a Democrat from Richland County, said minority businesses are already being overlooked.
“Minority businesses are already being overlooked,” Grant said. “I think what this does is helps them get over the guilt trip of not doing business with minorities faster when you don't have the data in place that allows you to track who you do business with, what kind of people get contracts with.”
Grant said the issue hits close to home.
“I know based off of our family business, how hard it is to get contracts on any level,” he said. “And so this isn't just saying, hey, give us a contract because we're a Black business, or we're a white women owned business, or we're Hispanic owned business. It is, hey, give us a fair shot, a fair look to see that we can do the work as well.”
Republican strategist Dave Wilson said the move reflects a “trickle down affect of what's going on with the Trump administration.” He also said he believes the executive order is tied to federal funding.
“Is it the fact that you don't want someone of a different race having an opportunity? No, but there are dollars that are tied back to policies that are going on in the states,” Wilson said. “It's what Washington does way too often, where they'll say, we'll take the money, but you can have the money if you implement these ideas.”
In a press release from the governor’s office, Republican lawmakers including Senate President Thomas Alexander and House Speaker Murrell Smith said they will introduce legislation to support the executive order when session begins. Grant said Democrats will also be bringing forth legislation.
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Governor McMaster's order sparks debate on minority business opportunities in SC – WACH
