http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Dec 02, 2005

Business given full year to adjust to new codes

Back
Africa|Measurement|Resources|Africa|South Africa|Mining|Jeffrey Ndumo|Kevin Lester|Measurement
Africa|Measurement|Resources|Africa||Mining||
africa-company|measurement-company|resources|africa|south-africa|mining|jeffrey-ndumo|kevin-lester|measurement
© Reuse this South African companies will have 12 months to adjust their black economic-empowerment (BEE) plans and reporting to comply with the new BEE codes of good practice (COGP), from the date of their gazetting, says Department of Trade and Industry BEE director Jeffrey Ndumo.

“We have allotted the transition period to allow companies to move from the previous narrow-based regime to the broad-based empower- ment approach as set out in the codes,” he explains.

The first phase of the codes was released last month, following a period of public comment.

The second phase is due to be published for comment during the first half of December, and the two will be gazetted simultaneously, probably in April or May in 2007.

The first phase of the COPG comprises a framework for the measurement of broad-based BEE, the approval, accreditation and regulation of BEE verification agencies, and issues surrounding the measurement of black ownership and management control, as well as an empowerment scorecard.

The second phase will include the remaining five codes on employment equity: skills development, preferential procurement, enterprise develop- ment and the ‘residual element’, as well as statements on multinational groups operating in South Africa, warehousing, Section 21 companies and organs of State.

It will also include a code on fronting and a statement on small, medium-sized and microenterprises (SMEs).

The three key themes of the codes released last month are: the emphasis on substance over form, the broad-based scorecard and the new BEE recognition tiers and anticipated ‘multiplier effect’, Ndumo said.

The BEE scorecard allots points through which a company is measured on several facets of empowerment, including ownership, top management, procurement, and employment equity.

The codes introduce the concept of eight ‘recognition levels’, based on points received on the scorecard.

However, Ndumo added that, if a company is more than 50% black-owned, it is immediately bumped up one level.

Going forward, the DTI will also focus on identifying possible circumventions of the codes, he said, which will be used in drawing up the code on fronting.

On the question of industry-specific empowerment charters, many of which have already been drawn up, Ndumo confirmed that these would not be recognised by government and will have no legal status.

The respective sectors can opt to have their charters gazetted as ‘sector codes’ but Cliffe Dekker director and DTI legal adviser Kevin Lester cautions that they will have to be in line with the codes if this is to happen.

“There will have to be a substantial alignment with the COGP, and no deviations in key themes and definitions of terms will be allowed,” he said.

“Government organs and state-owned enterprises will only recognise the codes in procurement decisions,” he continued.

A notable exception to the rule is the mining sector, which is governed by the Mining and Petroleum Resources Development Act, and its associated mining charter.

Lester said that the legislation would have to be amended if the mining charter was to be brought in line with the COGP, and that discussions are under way on the issue.

However, he does not expect to see any changes to the mining charter for at least five years.
Edited by: Liezel Hill
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
More
 
 
Latest News
Updated 1 hour 4 minutes ago The Cape Town International Convention Centre (CTICC) has outperformed its targets over the past financial year and contributed R3.1-billion to the gross domestic product in the 2013/14 financial year. CTICC CEO Julie-May Ellingson said the convention centre had been...
Public Enterprises Minister Lynne Brown
Updated 1 hour 43 minutes ago Public Enterprises Minister Lynne Brown has released details of the remuneration of the chairpersons and nonexecutive directors of the various State-owned company boards falling under her Ministry. The remuneration figures, which are attached, are based on figures...
Updated 1 hour 59 minutes ago Installed wind power capacity could swell by 530% to 2,000 gigawatts (GW) by 2030, supplying up to 19% of global electricity, a report from a trade association and Greenpeace said on Tuesday. It said installed wind energy capacity totalled 318 GW at the end of last...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks