Two key issues in the B-BBEE Act 53 of June 2016

Posted by Transcend
Wednesday, 6 July 2016  |  Comments

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There are two important requirements companies need to note which are imbedded in the narrative giving the BEE commission the powers to oversee BEE implementation into the future.

1) Reporting on compliance: all public companies listed on the Johannesburg Stock Exchange must convey to the Commission as agreed, a report on their compliance with broad-based black economic empowerment. as well status of compliance in regards to the following elements:

  • ownership where is applicable
  • management control
  • skills development
  • enterprise and supplier development
  • socio-economic development and
  • any other sector specific element

This report must be submitted to the Commission within 3 months of the end of financial year.

Any misrepresentation of data submitted in the report required shall be dealt with in terms of the Act.

The Commission may conduct a site visit to verify the accuracy of the data submitted in the report, in terms of section 13J (1) of the Act in respect of any non-compliance with the requirements of section 13G of the Act.

Note the Commission may publish reports submitted to it in terms of the Act in a way that deems appropriate including, making a combined summary and publication on its website. When submitting info to the Commission a person may claim that all or part of that data is confidential. Any claim intended in must be supported by a written declaration explaining why the information is confidential.

The Commission may release limited data to, or permit access to it by only the following people:

  • the person who provided that information to the Commission;
  • the person to whom the confidential information belongs; and
  • any other person, with the written consent of the person to whom the information belongs.

2) Registration of a transaction: An Organisation that enters into a significant broad-based black economic empowerment contract that is above the threshold firm by the Minister by notice in the Gazette shall, within fifteen (15) days of concluding the contract, submit the transaction to the Commission for registration in the prescribed (FORM B-BBEE 18 to comply with section 13F(1)(f) of the Act.)

Upon receipt of the registration of a significant broad-based black economic empowerment contract, the Commission must:

  • Straightaway recognise receipt of the registration in writing to the
  • party who submitted the transaction for registration; and
  • within in ten days the party that submitted the transaction for registration will receive the certificate only if the requests for registration set out in FORM B-BBEE 19 have been met.
  • The Commission might evaluate the transaction to determine adherence to the Act, and advise the party that submitted the transaction for registration in writing of any concerns about the Transaction this can happen within 90 days.
  • The organisation issued with the written advice is expected to sub regulate within a reasonable period after receiving the advice from the Commission, failing to do so the Commission may begin an investigation in terms of section 13F(1)(d) of the Act.
  • The requirement to submit the transaction for 1 registration in regards of these regulations does not create the requirement to get approval from theCommission before the transaction can be applied.
  • The parties to a significant broad-based black economic empowerment transaction must take steps to seek suitable advice before finalising the transaction, registration does not substitute such prior advice before the transaction is concluded.
  • The Commission may, subject to valid confidentiality claim, use the information submitted for the registration of the significant of broad-based black economic empowerment transaction in producing a report.

If you require assistance in complying with any of these two areas, our expert consultants are on-hand to offer assistance. email brian@transcend.co.za

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