FIN24.COM / 04 JULY 2019 - 09:50 / LAMEEZ OMARJEE AND JAN CRONJE
Only one in ten state entities submitted their broad-based black economic empowerment (B-BBEE) reports for 2018, according to the B-BBEE Commission.
The oversight body on Wednesday released a reporton the status and trends of B-BBEE for 2018.
It found that only 10 % of state entities and 43% of JSE-listed companies submitted compliance reports as required. In 2017 only 1% of state entities and 51% of JSE-listed firms submitted reports.
The submission of reports is compulsory for JSE-listed entities, organs of state, public entities and Skills Education Training Authorities.
"This worrying trend of non-compliance is clearly undermining the objectives of the B-BBEE Act," the commission said in a media statement.
The report found there was "no noticeable movement on board representation of JSE-listed entities". The makeup of the boards of companies listed on the local bourse that submitted reports were 62% white and foreign nationals, and 38% black.
The boards of state entities that submitted reports were found to be 75% black and 17% white*.
The commission on Wednesday noted that B-BBEE compliance is now part of the audit scope of the auditor general and annual B-BBEE reporting is a listing requirement on the JSE. "With these interventions and the enforcement action of the B-BBEE Commission, reporting and the extent of B-BBEE implementation is expected to improve," the commission said.
It said it would consider enforcing the submission of reports through "levying of penalties for the non-submission or late submissions".
"These penalties should be payable to the B-BBEE Commission via the CIPC platform, this will be a form of additional income to assist in meeting the operational requirements of the B-BBEE Commission’s mandate."
* Fin24 could not immediately calculate who makes up the remaining 8%. This article will be updated once more information becomes available.
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER