Advertise with

Cabinet to discuss draft BEE bill soon
Cabinet to discuss draft BEE bill soon

Cabinet to discuss draft BEE bill soon


IOL Business - Sep 8th 2011, 10:16

The Cabinet is expected to start deliberations on a draft empowerment bill next week, aimed at overhauling transformation in the manufacturing, retail and agricultural sectors.  

The bill proposes amendments to the black economic empowerment (BEE) legislation such as the criminalisation of fronting, and speeding up transformation in the three targeted sectors.

It also seeks to move beyond mere ownership and look at ways in which black people will play a meaningful role in procurement and production processes.

The director-general of the Department of Trade and Industry, Lionel October, said black people had been involved in the running of factories at a floor manager level and understood production processes.

“There was a conflict of legislation which saw industries in the retail, agricultural and manufacturing (sectors) avoid empowerment. We will shift empowerment to production and move BEE from the margins to the mainstream. The policy was not strong on retail and manufacturing,” he said.

The bill seeks to put a greater emphasis on using skilled black workers, and helping them start their own businesses.

The flaws in the Broad-based BEE Act resulted in companies avoiding implementing BEE measures. The draft bill aimed to reverse that and would ensure that BEE was not just about government contracts and licences, he explained.

October said the department had engaged with the BEE advisory council and a process was completed which saw the draft being finalised with some changes to the bill.

After approval from the cabinet the bill would be released to the public for comment.

The act was criticised this week by President Jacob Zuma and Economic Development Minister Ebrahim Patel. They said it needed to be re-thought as it was not bringing new entrants into business and it offered limited benefits.

At the Black Business Summit on Tuesday, Zuma said BEE should ensure participation of women and disabled people as well as making provision for black South Africans to start their own industrial firms.

Patel said the policy was a breeding ground for corrupt fronting and added that the government would promote stronger forms of ownership.

The new draft would criminalise fronting, October said.

The government had identified a number of problems with the Broad-based BEE Act, which was introduced seven years ago. It over-emphasised ownership and neglected procurement and enterprise development, October said.  

Read more about: services | supplier news | jobs

Related News

Global unemployment at lowest level in almost 40 years
10/12/2018 - 09:32
While global unemployment has fallen to its lowest level in almost 40 years, SA is among four countries with an unemployment rate higher than that immediately preceding the 2007/08 global financial crisis.

Customer engagement through gamification
17/08/2018 - 13:55
Gamification provides insurers with an ideal platform to enhance customer engagement. With apps like MEGA MEDS, that turns medicine management into a fun experience, and the likes of the Discovery Insure Driving Challenge, that rewards customers who are good drivers, there is significant potential for insurers and others to take a different approach to dealing with stakeholders.

New Checkers in Plettenberg Bay creates 160 new jobs in local community
27/03/2018 - 15:02
Checkers Plettenberg Bay Mall is one of 20 new look Checkers supermarkets in South Africa at the moment.

SodaStream SA calls for bottling companies to reveal water sources and plans in Cape Town
12/02/2018 - 14:58
SodaStream South Africa joins call to action urging Coca-Cola to develop a plan to ensure Cape Town residents have access to water. This follows a petition released last night by Avaaz, a global web movement that brings people-powered politics to decision-making everywhere.

Solutions to save the SA economy
25/07/2017 - 11:55
Low economic growth, recorded since 2011, is dragging down the employment rate which is negatively impacting the youth the most, a survey revealed.