The Broad-Based Black Economic Empowerment (B-BBEE) Commission will host a webinar session on 29 September 2020 at 10h00 with practitioners that are involved in advising, negotiating or drafting of governing documents for B-BBEE ownership deals and structures for alignment with the B-BBEE Act. Panellists will share their experiences and keys compliance and governance issues emerging. The session aims to improve compliance and curb fronting practices.
The session will have Lutendo Sigogo, Council Member (Legal Practice Council), Lindiwe Madonsela, Acting Executive Manager Compliance (B-BBEE Commission), Erika Holmes, Attorney (Shepstone & Wylie Attorneys) and Amber Kardamilakis, Director (Norton Rose Fulbright South Africa as panellists, with Dr Maria Ria Nonyana-Mokabane, Chief Director of Legislative Drafting (Department of Trade, Industry and Competition) as facilitator.
The B-BBEE Commission has since 2017 received a total of 499 major B-BBEE transactions and has registered 350, with 144 rejected for failing to comply with the basic registration requirements. These are ownership transactions with the transaction value of R25 million and above, which parties are required to report to the B-BBEE Commission within 15 days of conclusion for registration. Of the 350 registered, 322 have been individually assessed and in the process of alignment. 83 transactions have been referred for investigation as the parties have failed to remedy the concerns raised by the B-BBEE Commission.
Ownership is a priority element together with skills development and enterprise and supplier development under the B-BBEE Codes of Good Practice. With only 29% overall black ownership reported for the 2019 calendar year and JSE only having 3.3% entities that are 100% black owned, government and the private sector should work together to improve performance on B-BBEE compliance. It is important that B-BBEE ownership deals concluded are fully compliant and free of misrepresentation, undue restrictions or fronting practices as they aim to improve the ownership status of black people in South Africa.
This webinar session therefore provides the platform to share experiences of the B-BBEE Commission and practitioners to highlight the requirements, emerging issues, best practices and challenges in achieving alignment towards achieving a change in the patterns of ownership.
The B-BBEE Commission provides free advice to all entities, both in the public and private sector, on the implementation of the B-BBEE Act and this webinar forms part of its compliance strategy to educate, advocate and raise awareness on the B-BBEE Act. All interested practitioners in the B-BBEE space are welcome to in the discussion at no cost to hear from other practitioners and the B-BBEE Commission on this matter.
The B-BBEE Commission was established in terms of section 13B of the B-BBEE Act 53 of 2003 as amended by Act No 46 of 2013 with powers effective from 6 June 2016. The
B-BBEE Commission’s mandate, amongst others, is to supervise and encourage adherence to the B-BBEE Act in the interest of the public, conduct reactive and proactive investigations and promote good governance and accountability by creating an effective and efficient environment for the promotion and implementation of the objectives of broad-based black economic empowerment.
Source: Government of South Africa