Prese sentat ntation on to the AQRat Rate B- BB BBEE EE Forum um 21 July 2016 Du Durban
Presenters senters Ms. . Zodwa wa Nt Ntuli Acting ng Co Commi missi ssion oner er Ms. . Lindiwe we Madonsela nsela De Deputy ty Di Director ctor
Vision sion An inclusive lusive indus dustrialise trialised d econom onomy y that is globa bally ly compet ompetitiv itive 3
Mission sion To facil ilita itate te the accel celerat erated ed pro roductiv ductive implemen lementat ation ion of the Act 4
Value lues An inclusive lusive eco conom nomy y is our r first st consi nside deration ration Open en access cess and d availabi ailabili lity ty to all eco conom nomic ic citizens zens Impartial artiality ity Cons nsis istency ency Acco coun untabil ability ity for all decis cisions ions and d actions ions taken en by us Zero ro tolera eranc nce e to corrup rruption ion 5
Purpo rpose se To share re inform ormati ation on on the B-BBEE EE Act t and the Re Regula lations tions wi with the AQ AQRate Rate B-BB BBEE EE Forum um
Backgroun kground Sect ction on 9(2) of of the Constit nstitut ution ion: Equal uality ity • B-BBEE Amendment Act 46 of 2013 adopted and came into effect • on 24 24 Octob ober er 2014 14 Codes of Good Practice came into effect on 1 May 2015 15 • Acting Commissioner appointed effective 1 August ust 2015 15 • Trumping provision section 3(2) effective on 24 24 October ober 2015 15 • B-BBEE Commission operations commenced 1 April ril 2016 16 • Regulations came into effect on 6 June une 2016 16 •
Broa oad-Bas Based ed Bla lack k Econ onom omic ic Emp mpow owerment erment Vi Viab able eco econo nomic mic em empo powerment erment of al all bla lack ck peo eople le, in particular wo women men, • worke orkers, rs, you youth, th, pe peopl ple wi with th disa isabil iliti ities es and peop people li living ving in in rural rural are areas, as, through diverse but integrated socio-economic strategies that include: Incre reasin sing number of of black people le that manage, own and control Faci Facili litatin tating management and ownership by communitie communities , wo workers, rkers, coopera erati tives ves & other collective enterprises Human resource and skills lls develop opme ment nt Achieving equi uitab table le re repre prese sent ntati ation on in all occupational workforce levels and categories Preferential procuremen urement from black owned or managed Investme estment nt in enterprises that are black owned or managed 8
In Institutional titutional Framework mework Complian iance ce monito itori ring Verif ific icat ation ion IRBA and SANAS NAS B-BBE BEE E Prof ofes essional ional Commis ission ion Regulat ulator B-BBE BEE E Secto ctor Codes Advis isory ry Sector or Counc ncils ls Oversig sight Counc ncil Magis istrat rate e B-BBEE BEE Act Minis ister er Court rts Regulat latio ions s , Codes s and approva rovals ls Prose secu cutio tion/P /Penalties lties
Manda ndate te in te terms ms of f th the Act Sect ction on 13 13F outli line nes the follow owing ing func nctions ions – Oversee, supervise and promote adher herenc ence in the public interest – Strengthen col collabo labora ration tion betwee between publ public ic and and pr priv ivate sector sector to promote and safeguard the objectives of the Act – Receive complaints and/or inves investi tigate gate complaint omplaints in terms of this Act – Promote ad advoca vocacy cy, ac acces cess to to oppo opportuni rtunities ties and educ education ational al programmes and initiatives
…Mandate in terms of the Act – Maintain a re regis gister ter of major B-BBEE transactions (above threshold) – Receive and analyse prescribed report eports on on compli omplian ance ce – Promote go good od corpo corpora rate te go governa vernance nce and ac accountabi countabili lity ty by creating an effective and efficient environment – Increase kn knowled wledge ge and public public aw awarenes reness through educating, guiding, declaratory orders, and researching This informs the strategy, plan and required resources for the B-BBEE Commission
Progr ogramm ammes es • The work of the B-BBEE Commission is organised according to the following programmes: – Compliance – Investigations and Enforcement – Research, Analysis and Reporting – Relationship building/Stakeholder Relations – Administration
Services vices Of Offe fered red • Stakeholders can engage the B-BBEE Commission on the following: – Lodging a Complaint – Requesting an Advisory Opinion – Requesting for Written Clarification – Requesting a Presentation, Workshop or Information Session – Referral for Alternative Dispute Resolution – General Telephone Enquiries 13
Monitoring, nitoring, Eva valuation luation and d Reporting porting Sector tor Codes , including reporting to sector councils (s9) • – Minister to submit Sector Charter Report to the Commission within 30 days of receipt Reportin rting g Duties ies : Part 2 of the Regulations • – Organs of state and public entities reporting in annual reports (13G) – Listed entities and SETAs reporting to the B-BBEE Commission (13G) B-BBEE BEE verifica rificatio tion n professi fession onals ls who becomes aware of the commission • or attempt to commit an offence [13O (2)] Registratio stration n of major B-BBEE transactions (13F) above threshold • – Process set out in Part 5 of the Regulations – Minister to issue the threshold 14
Minister’s Powers & Transparency Clarifying ifying the Minister’s Powers rs in in respect pect of of Codes and and Regulations ations S9 – power to issue guidelines, approve or repeal sector codes • S10 – clarifies status of codes (generic and sector codes) • S14 – power regarding regulations, guidelines, practice notes • Transpare nsparent nt process ess for organs of of state/pu te/publi lic entiti ities es to to set higher crite teria ria S9 (6) – permission to excee ceed the qualification criteria for procurement and • other economic activities: Part 6 of of the Regulations ations S10 (2) – allows for exe exemption ption from complying with the codes or de devia iation tion • from the codes – on objectively verifiable facts or circumstances: Part art 7 of of Regulatio ations 15
Prohi ohibitions bitions and d Penal nalties ties Intro roducing ducing proh ohibi ibitions, ions, offences nces and and penalt nalties ies Lodging dging complaint omplaints in in acc ccorda ordance nce with Part rt 4 of of the Regulat gulations ions • 13N normal offences about co conf nfidential idential information information and obs obstru tructing cting • the administrat ministration ion 13O prohibits fronting fronting, misr misrep eprese resenta ntation tion of status, providing fals false • in inform format ation ion to verification agents, verification agent fai ailing ling to to rep report ort contravention Penaltie Penal ties – natural person can be a fine or up to 10 years • imprisonment – up to 10% annual turnover for juristic person – Magis gistrate trate Cour urt has jurisdiction 16
…Prohibitions and Penalties • Ca Cance ncella lati tion on of of cont contra ract ct or award in terms of 13A on account of false information • Excl Exclusion usion from doing business with the state (13P) for up to 10 years – could be limited to the directors, members or shareholders • Registered on tender tender de defaul faulters ters regi register ster of National Treasury 17
…Matters as at 30 June 2016 60 57 50 40 30 24 23 18 20 14 10 10 10 10 10 4 3 3 2 2 2 2 2 2 1 1 1 1 1 1 0 Septembe October Novembe Decembe January February March April May June Total r r r Number of complaints per month 1 1 1 3 3 14 10 24 57 Clarifications received per month 2 1 1 2 2 10 18 Advisory opinions finalised per month 2 2 4 Complaints meetings held per month 2 1 10 10 23
…Matters as at 30 June 2016 Complaints Per Type 57 60 43 50 40 30 20 6 4 10 2 1 1 0 Fronting B-BBEE Contracts Codes Credit Misleading Total Certificates Adverts
…Matters as at 30 June 2016 Complaints Per Sector 60 57 50 40 30 20 16 15 10 5 4 4 3 2 1 1 1 1 1 1 1 1 0
…Matters as at 30 June 2016
Conclusio nclusion B-BBEE must be part of the compan ompany y strategy rategy and plans • Need to shift from tick k box x exerc ercise ise to real implementation • B-BBEE must help achieve equali uality, ty, cre reate ate jobs bs and redu duce ce pove verty ty • Focus on qual ality ity, , impact act and sus ustainabili ainability ty of B-BBEE initiatives • Remove move obs bstacl acles es to transformation, including addressing the lack • of financial support and market access for black businesses Both priv rivat ate e and public lic sec ector or must implement this Act consistently • 22
Thank you
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