• Ros Nightingale

Western Cape legislature advised on ‘breach’ of B-BBEE by province

IOL - CAPE ARGUS - NEWS / 17 FEBRUARY 2021 - 17.01 / MWANGI GITHATHU


Cape Town - The B-BBEE Commission has advised the legislature to consider issuing a directive to all Western Cape organs of state and public entities to immediately submit their compliance reports.


This follows the provincial ANC seeking clarity from the commission over concerns about the commission’s implementation, and compliance monitoring of the Broad-Based Black Economic Empowerment Act (B-BBEE Act), as it relates to the province, its municipalities and entities.


The B-BBEE Commission has advised the legislature to consider issuing a directive to all Western Cape organs of state and public entities to immediately submit their compliance reports. File picture: Leon Lestrade/African News Agency


In a letter to the commission, ANC provincial spokesperson for finance and economic opportunities, Nomi Nkondlo, said: “The ANC’s concern was mainly that the Western Cape government is getting away with murder by hindering transformation in the province with impunity. Many black businesses are denied an opportunity to do business with the state due to a provincial Cabinet-approved strategy to allow the government to bypass the B-BBEE Act.

“This strategy permits the departments to use discretionary provisions of the Preferential Procurement Policy Framework Act (PPPFA) not to implement some elements prescribed in the B-BBEE Act, such as the pre-qualification and thresholds as explained particularly in the 2019/20 annual reports of the provincial Treasury and Department of Economic Development and Tourism,” said Nkondlo.


Responding to the letter, Commissioner Zodwa Ntuli said: “Our records show that only two compliance reports were submitted by the Department of Economic Development and Tourism, and Wesgro.”


“Thus, considering the submitted reports, compared with the number of organs of state and public entities in the province, we advise the provincial legislature to consider issuing a directive to all provincial organs of state and public entities to immediately submit their compliance reports within 30 days, in order to remedy this apparent breach,” said Ntuli.

On receiving the commissioner’s letter, Nkondlo said: “The B-BBEE Commission found the province and its entities in breach of provisions of the B-BBEE Act.”

Nkondlo said: “The ANC will write to Speaker Masizole Mnqazela and Premier Alan Winde to raise concerns about the apparent breaches of various sections of the B-BBEE Act by provincial organs of state, and seek remedial action.


“In the meantime. we call on the commissioner to expedite the issuing of formal advice to the provincial government regarding the reported lack of B-BBEE implementation as per her commitment.”

However, Finance and Economic Opportunities MEC David Maynier said: “The claim is incorrect and misleading because the B-BBEE Commission has not made any findings against the Western Cape government, neither has the commission issued any formal report.”


“Every department and entity in the province has published their report on B-BBEE compliance in their 2019/20 annual reports,” said Maynier.


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LINK : https://www.iol.co.za/capeargus/news/western-cape-legislature-advised-on-breach-of-b-bbee-by-province-ac177eaa-c8b8-46c4-bbcf-d6842f8bc44e


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