Trade and Industry Minister Dr Rob Davies
Photo by: Duane Daws
The amendments to the Broad-Based Black Economic Empowerment (BBBEE) Act have been sent to President Jacob Zuma for assent after the National Assembly adopted the amendment Bill this week, the Department of Trade and Industry said.
The Bill, which was gazetted in October, aimed to deal with the shortcomings that became apparent during the implementation of the initial legislation.
The BBBEE Amendment Bill of 2012, which was expected to be promulgated in mid-2014, aimed to fast-track and better guide South Africa in its transformation ambitions, while plotting the better alignment of the regulations with equal-opportunity growth in South Africa.
Trade and Industry Minister Dr Rob Davies said the amendment Bill would allow for the monitoring and evaluation of the implementation of BBBEE legislation, with a proposed BBBEE Commission ensuring that empowerment activities and related or interlinked regulations in South Africa were aligned.
The commission would play a critical role in overseeing, supervising and promoting adherence with the BBBEE Act and Codes of Good Practice.
The Bill would also promote integrated reporting on the impact of BBBEE in the country and ensure organs of State, public entities, sector councils and listed public companies provide BBBEE information to the commission.
The Bill, which planned to eliminate fronting, proposed that those who did not adhere to the revised regulations be fined the equivalent of 10% of that enterprise’s yearly turnover and/or imprisonment of up to ten years, besides others, depending on the infraction.