Tag Archive | BBBEE

DTI publishes property industry BBBEE Code regulations

By gazette, Trade and Industry Minister Rob Davies has regulated for black empowerment in the property sector; the department of trade and industry (DTI) having published the Property Sector Code in terms of the Broad-Based Black Economic Empowerment (BBBEE) Act aimed at economic transformation and “meaningful participation of black people, including women, the youth and people with disabilities”.

Minister Davies said in an accompanying statement as the gazette was published that the purpose was to “promote property development and investment in under-resourced areas, which enhances basic infrastructure, encourages investment and supports micro and small enterprises”.

Having much in common with DTI’s generic BBBEE code, the Property Sector Code introduces an eighth element of the scorecard called “economic development”, which the minister said has two measurement categories. “The first one is the commitment by the entities that deal in property development to invest at least 10% of their yearly property development investments in under-resourced areas. This is a transformational infrastructure commitment with the purpose of stimulating investment in those areas, reducing service inequalities and to create economic opportunities in those areas,” the minister said.

The second was the measurement of commitment by entities in the property sector to dispose of 35% of their assets to black-owned enterprises that had a BBBEE status of level 1 to level 3 in terms of the regulations, minister Davies said, meaning, as his statement added, that such “ were given the opportunity to own and trade in assets”.

Also, a difference is apparent in that the threshold for exemption from compliance for estate agents had been reduced to R2.5m of yearly turnover and not R5m as laid down in the standard BBBEE code.

Posted in BEE, Finance, economic, Land,Agriculture, Trade & Industry0 Comments

Davies to re-introduce his ailing BEE

Following the gazetting of a draft Broad-Based Black Economic Empowerment Amendment Bill in December 2011 for comment (60 days), trade and industry minister, Rob Davies, has recently indicated his view that the planned  amendments to BBBEE legislation would “seek to strengthen access to procurement opportunities and to assist with black enterprise development.”

He also indicated in his statement that fronting was a practice that had to be eliminated and penalties for non-compliance as far as regulations were concerned would be introduced in the legislation, which included jail sentences. How this would relate to the Liquid Fuels Charter is not clear. . In terms of the draft BBBEE Act Amendment Bill, the cabinet statement set out the proposed amendments, some of which included amendments including the penalties mentioned for non-compliance in terms of enterprise development, or lack of it, fronting and procurement elements not complied with in terms of the BBBEE scorecard.

Definitions of what is termed as fronting are given in order that legislation may apply and the appropriate regulations enforced. On this issue, much was passed on by minister of energy, Dipuo Peters from the energy conference in November 2011.   Minister Davies said that more emphasis was to be placed on enterprise development and procurement within key sectors, in terms of both the IPAP and new growth path plans. Incentives were to be created for broad based black ownership and the use of such tools as employee share ownership, co-operatives and community ownership.

Relevance to the Employment Equity Act was an important factor, Minister Davies said, as was aligning skills requirements to current and new skills development strategies involved in the new growth path and elsewhere. Targets for this, for procurement matters and enterprise development had to be “adjusted” accordingly, he said.

Meanwhile, Minister Dipuo Peters also welcomed the BBBEE legislation as contributing towards the objectives of the liquid fuels charter. Challenges facing her department were irregular monitoring of compliance, pockets of poor performance within the value chain and lack of financially sound BEE deals, she said late last year.

She also added that her department was looking at ways to strengthen liquid fuels strategic stocks to cover any emergencies that might arise.

She advised the media in November the compliance report on the liquid fuels charter had been submitted to the cabinet for approval. At the time, she expressed her view that current shareholding was not spread uniformly across the value chain and total assets spread in line with demographics, noting that whilst technical issues such as access to storage facilities was a significant problem. In general, she complained that the participation of women, procurement and enterprise development lagged behind targets.

She also added that her department was looking at ways to strengthen liquid fuels strategic stocks to cover any emergencies that might arise. Her recent comments on the new BBBEE legislation were made in the light of Minister Davies announcement.

Reference to both BBBEE legislation and the Liquid Fuels Charter is expected to come up in President Zuma’s address to the nation.

Posted in Cabinet,Presidential, Education, Electricity, Energy, Finance, economic, Fuel,oil,renewables, Health, Justice, constitutional, Labour, Land,Agriculture, Mining, beneficiation, Public utilities, Security,police,defence, Trade & Industry, Transport0 Comments


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