Tag Archive | B-BBEE legislation

Equity quotas court ruling affects BEE legislation

Employment equity quotas as numbers only struck down….

On equity quotas, the Employment Equity Act, as anchor legislation, and thus the recently approved Employment Equity Amendment Bill, has come under query as a result of a recent case heard in the Supreme Court which has found the Act is in default where numerical formulas only are applied to racial quotas in order to comply with regulations.

In fact numerical quotas are illegal, said the Court. In dealing with case before it, the Court found that this had been applied, the appellant failing to achieve an appointment based the fact that racial quota targets had been applied in terms of black empowerment legislation.  The defendant was the minister of police.

The court further found the Act in contradiction of itself by being unfair if it regulated itself to achieve employment equity with just numbers, as distinct from “preferential treatment and numerical goals” being applied, as has been applied in government circles elsewhere.

A whole host of applications applied by many government departments would therefore seem to be in contravention of the Act, since many departments rigidly use number quotas to achieve equity targets across a wide range of the public service.

Posted in BEE, Cabinet,Presidential, Facebook and Twitter, Justice, constitutional, Labour, LinkedIn, Public utilities, Security,police,defence, Special Recent Posts, Trade & Industry0 Comments

Government dissatisfied with oil industry BEE progress

A veiled threat was made to the oil industry by the department of energy (DOE) by deputy director general, Tseliso Maqubela, who recently said in Parliament it was important for companies to comply with BEE laws and that one of the implications of the failure to do so “will be to curtail the capacity of those who violate the law (by limiting) their capacity to import products.”

He told reporters at a press conference held to announce the findings of the audit into the oil industry’s performance in terms of the Liquid Fuels Charter that the “results are extremely disappointing given the timelines” and he said that his department was going to create a unit that will specifically deal with compliance in terms of the Liquid Fuels Charter.

“We will ensure that there is compliance on a daily basis, not only with the charter, but with all the other requirements of the law”, he said.

Energy Minister Dipuo Peters said on the same platform that government was not to be held to ransom by companies in the fuel sector that do not comply.   “This is emotional, political, as well as economical blackmail,” she told the media.   The law was being ignored, she complained, and she added that DOE “needed to make sure that all comply with and respect the laws of this country.”

The minister reminded the media that the charter was drawn up in 2000 and called for 25 percent black ownership across the value chain within 10 years but according to the audit “the average effective narrow-based black shareholding is 18.91 percent”.

She continued, “Out of this 18.91 percent, representation for black women stands at a meager 6.72 percent, while only one oil company, Total South Africa, has fully complied with the obligation for ownership by black shareholders.”

Two years ago, minister Peters said, DOE had called for amendments to the Liquid Fuels Charter and the Petroleum Products Act to give black players in the retail fuel industry access to the fuel infrastructure.     What was evident then was that the representation of women in all strategic areas listed in the charter was of great concern, when compared to the expectations of equity norms.

The audit had confirmed this fact and what was needed was for industry players to work together to correct that which was wrong, she said.

The energy department would study the findings and contact different role players to plan the way forward and address problems. The audit findings had been presented to Cabinet, she told reporters, and that matters would be referred to the economic cluster for further review.

SAPA reports that the SA Petroleum Industry Association has said it would speak to the department after an opportunity to review the findings.

Posted in BEE, Cabinet,Presidential, Finance, economic, Fuel,oil,renewables, Mining, beneficiation, Public utilities, Trade & Industry, Transport, Uncategorized0 Comments


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