Accelerating the Work of the B-BBEE Commission is   of Imperative Priority – Acting Commissioner Ntuli






The Acting Commissioner of the   Broad-Based Black Economic Empowerment (B-BBEE) Commission, Ms Zodwa Ntuli says   that an effective Commission is important for the pace of transformation of   our economy to be accelerated to achieve the objectives of the B-BBEE Act. Ms   Ntuli was speaking at a business engagement session that took place in   Johannesburg where she engaged critical stakeholders with the aim of   obtaining views and expectations that will be incorporated in the final   process of the establishment of the B-BBEE Commission.
  Ntuli highlighted the need for critical players to contribute in shaping the   strategy and the work of the B-BBEE Commission and be able to measure its   performance regularly against the legislative objectives. 
  She said that the B-BBEE Act has clearly defined what the Commission should   be focusing on based on gaps that existed since the implementation of B-BBEE   in 2003.
  “Our review has revealed that the monitoring of transformation was not   conducted diligently. We therefore must ensure that the Commission closes   this gap. B-BBEE cannot continue to be applied in pockets, haphazardly and   when people feel like it. We must be able to constantly measure the economic   value of BEE transactions and verify whether they are measurable against the   National Development Plan imperative of reducing poverty, unemployment and   inequality. With this Act as revised now we will be able to zoom in on   company reports and interrogate spending patterns to determine whether they   are advancing transformation in real and sustainable terms,” said Ntuli.    
  Ntuli also identified fronting practices as a key constraint to   transformation that the Commission will also be focussing on.
  “Fronting as a practice started off on a small scale and continued unabated   to the point that it became sort of a norm. Fronting has now become so   complex and sophisticated, and made part and parcel of many BEE deals as if   it is a legitimate practice. The Commission will focus on eradicating this   practice, but more importantly it will focus on putting measures in place to   prevent such practice going forward. B-BBEE deals, including those broad-based   empowerment schemes will be scrutinized regularly, and monitored to detect   this fraudulent practice. Fronting undermines transformation and is   unacceptable,” added Ntuli. 
  Ntuli added that there was also misalignment of government legislation to the   B-BBEE legislation. 
  “The B-BBEE Act creates a ‘Trumping Provision’ for BBBEE Act to prevail where   there are instances of conflict created by misalignment of legislation. The   ‘Trumping Provision’ simply means that if there is a piece of legislation   that is not consistent with the B-BBEE legislation, then the BEE legislation   will trump the conflicting legislation. The B-BBEE Commission will ensure   this is enforced and will monitor how the B-BBEE Act is applied by all   government departments and entities,” cautioned Ntuli.
  Ntuli said that the Commission would work with government entities and other   players to identify those companies that misrepresent their B-BBEE status and   manipulate the application of the codes to defraud government, and ensure   that they are publicized, prosecuted and ultimately excluded from doing   business with any government component. Such culprits should not be allowed   to continue to unjustly benefit from government procurement.
  In conclusion, Ntuli emphasized that to achieve an inclusive economy requires   all participants in the economy to play their part. The Commission intends to   work with all critical stakeholders, including the industry players, state   owned enterprises and practitioners in this space to speed up the pace of   transformation. Success is going to come in all working together towards this   goal, and in this process we aim to assist state owned entities to set   significantly high targets for transformation in their policies, and apply   them transparently within the parameters of B-BBEE Act. State owned entities   are a key driver of this transformation agenda.
  Sidwell Medupe-Departmental Spokesperson
  Tel: (012) 394 1650
  Mobile: 079 492 1774
  Issued by: The Department of Trade and Industry
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