Enterprise Development and Supplier Development & Non-Profit Organisations and Non-Profit Companies
Do not get caught by marketing emails. We will assist all our clients and their suppliers in the dilemma of whether Trusts are legal.
A few developments have been brought to our attention in the past few weeks, but Fronting seems to be in forefront.
Yesterday Deputy President Cyril Ramaphosa broached this subject in his address to the National Council of Provinces. He stated “that the BBBEE Advisory Council had become aware of the “growing” practice, and agreed that penalties should be imposed on offenders.”
Please don’t panic IRBA has elected to withdraw its accreditation to do B-BBEE Verifications. This does not affect B-BBEE Wise going forward or you as our client.
Our main focus as a company has always been to protect you our client and offer you the best solutions for your B-BBEE. As soon as we were notified of IRBA’s resignation we immediately initiated the process of becoming SANAS approved. Bbbee Wise was originally SANAS accredited and the process to revert back is by no means cause for concern.
AS THE bidding war for Barclays’s 50.1% stake in Barclays Africa Group hots up, it has emerged that an empowerment deal is likely to be part of the equation. A staff share scheme could be on the cards too, depending on the buyer.
Barclays Africa chairman Wendy Lucas-Bull told shareholders at its annual meeting on Tuesday that the disposal of some or all of Barclays plc’s stake in its South African subsidiary presented an opportunity to increase the empowerment shareholding. "This is one of the options we have tabled with (Barclays) plc. We are collaborating with them to look at a broad range of options."
Mineral Resources Minister Mosebenzi Zwane on April 15 published the Reviewed Draft Broad-Based Black Economic Empowerment (B-BBEE) Charter for the South African Mining and Minerals Industry in a surprise gazette notice, which allowed 30 days for public comment.
During a panel discussion facilitated by Lucas Moalusi of law firm Fasken Martineau and conducted by Fasken Martineau's Mining and B-BBEE practice group of Paul Fouche, Sabelo Dlamini and Lameeze Jean-Pierre, attention was drawn to the potential retrospective effect of the draft charter, as well as B-BBEE shareholding structure changes.
The Department of Trade and Industry has invited comment on the Draft Amended Transport Sector Code, which has been gazetted in terms of the Broad Based Black Economic Empowerment Act.
The transport sector code, one of the biggest sector codes, consists of eight subsector codes. It has been gazetted for a 60-day public comment period by Minister of Trade and Industry Dr Rob Davies.
Speaking to BBBEE Commission conference delegates through a video link-up on Tuesday, Trade and Industry Minister Dr Rob Davies noted that fronting had become much more complex over time, embedding itself in several aspects of the country’s economic fabric, rolling back ambitions for economic empowerment and reversing the gains of transformation.
THE government, the financial services industry, industry charters in general and verification agencies are all contributing to the continuation of fronting, delegates at the Broad-based Black Economic Empowerment Commission conference on fronting say.
Fronting refers to misrepresenting a business as black-owned and run in order to secure contracts, although the real decision-making is done by white people, who also reap the financial benefits. Fronting is a criminal offence under the recently amended Broad-based Black Economic Empowerment (B-BBEE) Act.
A LARGE empowerment shareholder at debt-laden cellular services group Cell C is looking to disrupt a much-needed recapitalisation exercise initiated by JSE-listed Blue Label Telecoms.
CellSAf, which holds an effective 25% stake in Cell C, has filed an application in the Gauteng High Court to liquidate 3C Telecommunications, the holding company for Cell C
THE financial services sector has committed itself to spending R122bn on various forms of black economic empowerment (BEE) over a period of five years.
The commitment was agreed by the Financial Services Sector Charter Council, which also thrashed out the new draft amended broad-based BEE code for the sector. The draft was published recently in the Government Gazette for public comment until May 17.
THE implementation and interpretation of the total spectrum of black economic empowerment (BEE) legislation is entering an interesting phase. The functionaries and executives in the government over the years have had their own ideas and often interpreted rules in ways that are not reconcilable with the rule of law. In the past, the private sector swallowed this for the sake of transformation, but all the signs are pointing to major disputes and long court battles over the way that BEE is being applied.
While many are wondering about the implications of the “Trumping Clause” in the BEE Amendment Bill for the mining industry an interesting legal development is reported in Business Day of 18th August
It reports that law firm Malan Scholes Inc. has gone to court to set aside the Mining Charters of 2004 and 2010, arguing that they are unconstitutional, vague and contradictory, allowing for abuse by the mineral resources minister and officials.
THE government and black business want to see a new wave of black economic empowerment (BEE) and are pulling the levers to get it started. But as the pressure ratchets up, the old debates are sure to arise: must firms continuously do new deals to maintain their ownership levels?
Is BEE about redress and redistribution or about transformation? And what is the endgame for BEE in the economy?