BEE Commission calls for tightening of legislation

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The Broad-Based-BEE Commission has called for the tightening of legislation and more powers to deal with companies that undermine measures to empower the previously disadvantaged. The Broad-Based BEE Commissioner Tshediso Matona briefed the media on the Commission’s work over the past 20 years.

The Triple BEE legislation aims to redress the socio-economic imbalances created by apartheid and ensure economic opportunities for the previously marginalised races. The Broad-Based Black Economic Empowerment Commission has revealed that 30 years into democracy and 20 years since the legislation was passed, inequality, black poverty and economic exclusion continue to persist.

The Commission says it has encountered concerted efforts from some sections of society to frustrate the process of transformation and delegitimize its work on redress. It’s also observed rampant violation of the BEE rules by some companies that are still found to misrepresent their transformation standing.

“We are picking up around our complaints that fronting is still very much prevalent, it’s quite complex that you may not pick it up, to date we’ve received 1273 complaints on fronting. 84 pertain to fronting, generally related to ownership and enterprise and supply development like your mining sector, transport, construction as well as engineering, they turn to have year in year out high numbers of fronting cases but that can also make you think of the economic opportunities that take place within those spheres,” says Lindiwe Madonsela, Senior Manager, Compliance: B-BBEE Commission.

The commission also gave a status of transformation in the country and trends on their 2022 Triple BEE Report that reflects some gains and challenges.

“We’ve had 260 total reports, including JSE with 155 entities, overall black ownership is at 33. 9 %, 29.5 % with overall black women ownership sitting at 14. 2 % it was at 12. 4 % in 2021. The report also tells us there were no 100 % black-owned entities from JSE entities that reported. It also shows us that the overall black management control was at 58. 4 % in 2022, this was at 51 %, 2021,” adds Madonsela.

The Triple BEE Commissioner has slammed what he has described as efforts to frustrate their work and undermine transformation by certain groups within society.

“There has recently emerged a group of civil society groups that represent white rightwing interests that have made it their business with a plan to attack transformation legislation starting with the attack on preferential procurement. Solidarity, AfriForum and race relations, they attack and scare the National Treasury and end up confusing the market so we’ve been doing damage control,” says Tshediso Matona, Triple BEE Commissioner.

He has also lamented the slow pace of law enforcement for those found to be in perpetual violation of the Triple BEE legislation. He says efforts are now under way to strengthen legislation to ensure prosecution.

“There are some cases that are so gross, some transgressions and violations of the law that are so gross that I wish I can literally go handcuff the culprits, but I don’t have those, the legislation doesn’t give me the powers. We refer them to the police and the NPA but as it turns out, our matters pile up,” Matona added.

The Commission has also raised issues with fraudulent BEE Compliance certificates making the rounds, which it cautions businesses and practitioners from embarking on such, with efforts under way to root out the criminal elements.

The Commission is calling on businesses to play by the triple bee rules in championing economic redress and transformation and to speak up on the need for compliance assistance. The Commission continues to push for more powers from Parliament to prosecute those in violation as a drive to balance incentives and penalties.