BROAD BASED BLACK ECONOMIC EMPOWERMENT AMENDMENT RELEASED

The Department of Trade and Industry (the dti) hereby announces the release of the Broad-Based Black Economic Empowerment Amendment Act No. 46 of 2013.

The Broad-Based Black Economic Empowerment Amendment Act, 2013 (Act No. 46 of 2013) was assented by the President of the Republic of South Africa, and published for general information in Government Gazette No. 37271 (Notice No. 55) of 27 January 2014. The gazetted Proclamation notice for the commencement of the B-BBEE Amendment Act No. 46 of 2013 has now released in the government gazette. The commencement of the Amendment Act starts from the date of gazette and now enforced as Law.

The Minister of Trade and Industry, Dr Rob Davies says the operation of the Act is necessary in order to enable the department to perform some of the functions embedded in the Act. He says that it is also imperative for the development of subordinate legislation, and to ensure the effective implementation of the Codes of Good Practice.

Minister Davies added that the intention of the Amendment Act is to strengthen the effective and consistent implementation and reporting across the economy as well as to put in place mechanisms to deal with non-compliance. According to him this embedded in the key objectives of the Amendment Act which seeks to achieve the following:-

•            Align the Act with other legislation impacting on B-BBEE and with the Codes of Good Practice;

•            Establish the B-BBEE Commission to create an institutional environment for monitoring and evaluating B-BBEE;

•            Deal with non-compliance and circumvention by inter alia introducing offences and penalties;

•            Provide for the regulation of the verification industry;  and

•            To give effect to government policy aimed at reducing inequality, defeating poverty and creating employment.

Minister Davies further said that some of the Key material amendments in the Act refer to the following:

Aligning the Act and the Codes which comprises of an Interpretation clause extended to include a trumping provision that stipulates that the BBBEE amendment Act will trump any law that was in force prior to the commencement date of this Act and is in conflict to any aspect dealt with in this Act and the Minister’s power to issue codes of good practice has been clarified.

The Establishment of the B-BBEE Commission which will be created as a entity within the administration of the dti, headed by a Commissioner appointed by the Minister. The Commission will be responsible for overseeing, supervising and promoting adherence to the Act as well as the Monitoring and Evaluation of B-BBEE.

Offences, Penalties and Prohibitions this paragraph makes specific reference to fronting practices and misrepresentation of the B-BBEE status of an enterprise. It sets clear penalties which includes a minimum penalty of 10 years imprisonment (and / or a fine), or if the offender is not a natural person, a fine of 10% of its annual turnover.

Minister Rob Davies highlighted that with the gazetting of the proclamation notice, these key material amendments will come into immediate effect.