MEDIA
STATEMENT ON THE CONSTRUCTION SECTOR CHARTER COUNCIL BASELINE REPORT
By
BRIAN Kajengo
The
Minister of Trade and Industry, Dr Rob Davies has noted the first baseline
report for the construction sector that was released by Construction Sector
Charter Council (CSCC). The report focuses on progress made on the
implementation of a Sector Code and is a requirement in terms of the Broad
Based Black Economic Empowerment (B-BBEE) policy.
The
Minister commend the sector and recognises that this is the first baseline
report for the construction sector and the sector can build on this to improve
areas where there are still gaps.
“The
report shows that there is little participation of black people as owners in
large companies. In 2011 over 393 construction Measured Entities has shown less
than 10% black ownership. Most of the large entities are hovering around 10
percent ownership level which is lower than the 25 percent ownership target.
This means that black people in the sector are not participating as owners in
the large construction entities”, said Minister Davies.
Davies
highlighted that the other key concern about the report is the fact that there
is a decreasing trend in the use of Preferential Procurement and Skills
Development especially amongst the Qualifying Small Enterprises (QSEs).
“If
you look at the scoring between 2009-2013, there has been a decline on
companies scoring on these elements especially amongst the QSEs. This is
worrying especially for skills as the survival of the sector depends on the
capacity building. If you do not have the people who are skilled means the
sector is basically in trouble and will not be able to grow. Both elements are
priority in terms of the Amended Codes”, he emphasised.
According
to Minister Davies, the baseline report shall inform the process of alignment
of the Construction Sector Code to the Amended Codes of Good Practice which is
scheduled to be finalised before the end of April 2015. Areas where the sector
is not performing should be given more emphasis to build an integrated and
prosperous construction sector.
Entities
and associations in the construction sector are encouraged to support CSCC by
ensuring that on an annual basis they submit their B-BBEE compliance reports.
In addition for accurate and complete reporting the submissions to CSCC should include
information over and above that which appears on a B-BBEE certificate. This
will assist in measuring progress with regard to transformation not only in
terms of B-BBEE levels but rather a comprehensive overview across all pillars,
both quantitatively and qualitatively.
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