BB BBEE EE Forum um 21 July 2016 Du Durban Presenters senters - - PowerPoint PPT Presentation

Prese sentat ntation

• n 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

• ner

er Ms. . Lindiwe we Madonsela nsela De Deputy ty Di Director ctor

Vision sion

An inclusive lusive indus dustrialise trialised d econom

• nomy

y that is globa bally ly compet

• mpetitiv

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

• rmati

ation

• n 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

• n 9(2) of
• f the Constit

nstitut ution ion: Equal uality ity

• B-BBEE Amendment Act 46 of 2013 adopted and came into effect
• n 24

24 Octob

• ber

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

• ber 2015

15

• B-BBEE Commission operations commenced 1 April

ril 2016 16

• Regulations came into effect on 6 June

une 2016 16

Broa

• ad-Bas

Based ed Bla lack k Econ

• nom
• mic

ic Emp mpow

• werment

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

• rkers,

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

• f 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

• pme

ment nt

• Achieving equi

uitab table le re repre prese sent ntati ation

• n 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

B-BBEE BEE Act

Minis ister er B-BBE BEE E Advis isory ry Counc ncil B-BBE BEE E Commis ission ion Verif ific icat ation ion Prof

• fes

essional ional Regulat ulator Sector

• r Counc

ncils ls Magis istrat rate e Court rts

IRBA and SANAS NAS Prose secu cutio tion/P /Penalties lties Secto ctor Codes Oversig sight Regulat latio ions s , Codes s and approva rovals ls Complian iance ce monito itori ring

Manda ndate te in te terms ms of f th the Act

• Sect

ction

• n 13

13F outli line nes the follow

• wing

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

• mplaints in terms of this

Act – Promote ad advoca vocacy cy, ac acces cess to to oppo

• pportuni

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

• n compli
• mplian

ance ce – Promote go good

• d 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

• gramm

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

• nals

ls who becomes aware of the commission

• r 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

• f 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

• f 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

• ther economic activities: Part 6 of
• f 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

• f

Regulatio ations

15

Prohi

• hibitions

bitions and d Penal nalties ties

Intro roducing ducing proh

• hibi

ibitions, ions, offences nces and and penalt nalties ies

• Lodging

dging complaint

• mplaints in

in acc ccorda

• rdance

nce with Part rt 4 of

• f the Regulat

gulations ions

• 13N normal offences about co

conf nfidential idential information information and obs

• bstru

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

• rt

contravention

• Penal

Penaltie 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

• n of
• f 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

• r shareholders
• Registered on tender

tender de defaul faulters ters regi register ster of National Treasury

17

Septembe r October Novembe r Decembe r January February March April May June Total 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 1 1 1 3 3 14 10 24 57 2 1 1 2 2 10 18 2 2 4 2 1 10 10 23 10 20 30 40 50 60

…Matters as at 30 June 2016

10 20 30 40 50 60 Fronting B-BBEE Certificates Contracts Codes Credit Misleading Adverts Total 43 6 4 2 1 1 57

Complaints Per Type

…Matters as at 30 June 2016

1 3 1 15 2 5 4 4 1 1 1 1 16 1 1 57 10 20 30 40 50 60

Complaints Per Sector

…Matters as at 30 June 2016

…Matters as at 30 June 2016

Conclusio nclusion

• B-BBEE must be part of the compan
• mpany

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

• f financial support and market access for black businesses
• Both priv

rivat ate e and public lic sec ector

• r must implement this Act consistently

22

Thank you