Mayibongwe Maqhina | 29 August 2023 Parliament has asked members of the public and interested parties to make written comments on the Public Procurement Bill. The bill, now before the standing committee on finance, was introduced in the National Legislature by Finance Minister Enoch Godongwana after approval by the Cabinet in May. Godongwana previously said the bill was revised to take into account the Constitutional Court judgment on the preferential procurement regulations and the Zondo Commission that highlighted abuses in state procurement. Committee chairperson Joe Maswanganyi said stakeholders and interested parties should submit written submissions on the bill by September 11. “Those who want to make submissions at public hearings on Tuesday, 12 and Wednesday, 13 September 2023 should specifically request this,” he said. He added that the public hearings would be conducted virtually. Maswanganyi explained that the Public Procurement Bill aimed to regulate public procurement and prescribe a framework within which preferential procurement must be implemented. The summary of the bill states that public procurement in South Africa is currently fragmented as there are a number of laws that regulate procurement across public administration. “This fragmentation results in confusion as different procurement rules apply. Some of these laws pre-date the constitutional order brought about in 1994,” reads the bill. The National Treasury said it was important and necessary to have legislation that created a single framework regulating procurement in line with all applicable stipulations of the Constitution, and that contributed to address the economic and social challenges of South Africa. “The bill aims to create a single regulatory framework for public procurement and to eliminate fragmentation in laws that deal with procurement in the public sector and, among others, provide for the establishment of a Public Procurement Office within the National Treasury.” The new legislation would apply to all procurement carried out by a procuring institution, including procurement through donor or grant funding, and any person who submits a bid or has been awarded a bid. It said no person may interfere with, or influence the procurement process of a procuring institution, and impede the accounting officer or the accounting authority or an official in fulfilling his or her responsibilities. The bill sets out the categories of people who are not allowed to tender for services in the government. These include public office bearers, leaders of political parties, civil servants, state-owned enterprise employees as well as employee of municipalities or municipal entities. This will also apply to non-executive directors of boards of SOEs and companies that have been blacklisted for a certain period. “The bill also requires persons involved in procurement or a person related to the official ... to disclose a direct or indirect personal interest in a procurement.” According to the proposed legislation, the Public Procurement Office that would be established within the National Treasury would promote and implement necessary measures to maintain the integrity of procurement, among other things. Provincial treasuries will be expected to intervene by taking appropriate steps to address a material breach of the act by a procuring institution within their province. “Every procuring institution must establish a procurement unit as part of its procurement system.” The Public Procurement Office will be expected to develop an information and communication technology-based procurement system. The bill also provides for the establishment of the Public Procurement Tribunal to review decisions taken by organs of state and to blacklist a service provider. “If a bidder is not satisfied by a decision made by a procuring institution in terms of section 31, that bidder may, within 10 days of being informed of the procuring institution’s decision, submit an application for review to the tribunal.” It also states that any party that was dissatisfied with an order of the tribunal may institute proceedings for judicial review. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/capetimes/news/parliament-seeks-written-comments-on-new-public-procurement-bill-8d6a98cb-7bf6-4d22-8b44-4eb36d5d61d5

Staff Writer | 29 August 2023 By equipping these entrepreneurs with essential resources, mentorship, and tools, this initiative rekindles optimism and encourages the pursuit of economic independence. In a resolute response to the challenges faced by Township communities, the Empire Partner Foundation (EPF), in collaboration with Township Distribution Model (TDM) and with generous sponsorship from the Chemical Industries Education & Training Authority (CHIETA), today announced the successful recruitment, selection and onboarding of 50 previously unemployed youth onto EPF’s self-employment initiative. This pivotal EPF initiative stands as a beacon of hope and a testament to the power of community-driven economic development, which as its foundation, creates a circular economy of nurturing local talent to provide direct services to the community, while creating self-employment opportunities in that community. The CHIETA KASI FOOD CART project, supported by robust data, will showcases the substantial impact the project will make towards uplifting the beneficiaries and communities they operate in. Total Beneficiaries: 50 Gender Distribution: Female: 38, Male: 12 Age Distribution: 18 years to 34 years: 41 and 34 years and above: 9 Ethnicity: Black: 100% Townships: Brits: 7 beneficiaries Soshanguve: 11 beneficiaries Tshwane: 1 beneficiary Centurion: 2 beneficiaries Midrand: 1 beneficiary Cosmo City: 6 beneficiaries Tembisa: 5 beneficiaries Boksburg: 1 beneficiary Brakpan: 1 beneficiary Soweto: 7 beneficiaries Kathlehong: 2 beneficiaries Vaal: 6 beneficiaries Education Qualification: Grade 10: 3 beneficiaries Grade 11: 5 beneficiaries Grade 12: 37 beneficiaries Post Graduate: 5 beneficiaries This collaboration between EPF, TDM, and CHIETA not only propels the entrepreneurial dreams of individuals but also provides an effective response to the despair often felt within township communities. By equipping these entrepreneurs with essential resources, mentorship, and tools, this initiative rekindles optimism and encourages the pursuit of economic independence. In the face of adversity, EPF, TDM, and CHIETA are united in their commitment to eradicating despair and replacing it with the promise of a brighter future. This initiative stands as a testament to the transformative potential that can be unlocked when organizations collaborate with a shared vision of community upliftment. For more information about this initiative and future collaborations, please contact: info@empirepartnerfoundation.org ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://techfinancials.co.za/2023/08/29/epf-tdm-and-chietas-empowerment-initiative-mitigates-despair-in-townships-via-enlisting-and-integrating-50-entrepreneurs/

Hulme Scholes | 28 August 2023 I READ with interest, a comment by the Chinese delegation to BRICS, that South African Government procurement processes and BEE, are seen as an impediment to Chinese investment in South Africa. These are not impediments as firstly, the Cadres do not allow their participation in State procurement to be affected by irritating legislation like the Criminal Procedure Act, the Public Finance Management Act and the Prevention of Organised Crime Act. Secondly, and when considered in a mining context, Chinese people, even those that are not South African citizens, qualify as Historically Disadvantaged Persons for the purposes of the MPRD Act and the Mining Charter. Some may say this is contrary to the spirit of the Mining Charter, but the truth is that the Yuan and Yang of the Mining Charter is that a history of racial discrimination and not citizenship, is the imperative for BEE in the mining industry. The MPRD Act imposes an obligation on applicants for Mining Rights, to facilitate the participation by HDPs in the mining industry. This obligation is discharged by complying with the Mining Charter. The MPRD Act and the Mining Charter define HDPs as any person, category of persons or community unfairly discriminated against before the Constitution took effect. To fall into that category, a natural person does not have to be a South African citizen but can be from any country whose citizens fell within a racial grouping discriminated against under Apartheid laws. Chinese people were so discriminated against. A prior version of the Mining Charter did attempt, albeit clumsily, to limit HDPs to include only South African citizens, but this version has been replaced by the 2018 version of the Mining Charter, which contains no such restriction or limitation. Practically then, any Chinese person or a Chinese company for that matter which intends to apply for Mining Rights in South Africa, would not need to conclude a transaction with South African HDPs to discharge the BEE obligation under the MPRD Act. The Codes of Good Practice for the mining industry, contain a definition of Historically Disadvantaged South Africans, but there is no significant difference between that definition and the definition of HDPs in the MPRD Act and the Mining Charter. The reference to South Africans is contextually meaningless. Interestingly, in a 2007 Judgment, our Courts held that South African Chinese people fall within the ambit of the definition of “Black People” for purposes of the Employment Equity Act and the Broad-Based Economic Empowerment Act. The Mining Charter and the MPRD Act do not however require Chinese people to be South African citizens to qualify as HDPs for the purposes of ticking the BEE box for applications for rights under the MPRD Act. It is doubtful that the DMRE will embrace this interpretation with enthusiasm, but they may do so to woo their new BRICS besties to increase their share in South Africa’s mineral wealth by applying for rights under the MPRD Act. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.miningmx.com/opinion/54271-sas-mining-law-welcomes-china-with-open-arms/

Ray Mahlaka | 28 August 2023 Although Sanral has acknowledged that some of its staff members did not comply with its new scoring system on tenders, the state-owned entity said the new system has not caused tensions between its board and senior management. he South African National Roads Agency (Sanral) has dismissed suggestions that its new preferential procurement policy for its tenders has created tensions with bidders and within its management structures. Sanral ruffled feathers when its board implemented a new scoring system in May that the state-owned entity (SOE) uses when adjudicating tender bids. Some industry players and tender bidders argued that the new scoring system would significantly downgrade their Broad-Based Black Economic Empowerment (B-BBEE) status and leave them unable to do business with the state and its organs. Two engineering construction companies, H&I Construction and Wilson Bayly Holmes-Ovcon (WBHO), have dragged Sanral to court to challenge the board’s new scoring system on tenders. In the court application, H&I Construction and WBHO are supported by 11 other construction companies, including Raubex and Stefanutti Stocks. Some Sanral managers have reportedly pushed back against the implementation of the new scoring system mandated by the board — led by chairperson Themba Mhambi — because it might contravene the Preferential Procurement Policy Framework Act and regulations on procuring goods from companies with a favourable B-BBEE status. The tender adjudication system of government departments and state organs is based on a points system in which companies with favourable B-BBEE profiles earn more points, thus being in a better position to be awarded tenders. Although Sanral has acknowledged that some of its staff members did not comply with the new scoring system, the SOE said the new system caused no tensions between its board and senior management. “There is and never has been any dispute between the chairperson of the Sanral board and its management,” Sanral said in a statement to Daily Maverick on Monday. “The Sanral board has clearly communicated its position that Sanral takes positions as an organisation and expects its staff members to be disciplined in the implementation of board resolutions.” However, News24 Business reported that Sanral chief financial officer, Inge Mulder, and Inba Thumbiran, the head of supply chain management, have been suspended while the kerfuffle over the board’s new procurement policy rages. The reasons behind the reported suspension of Mulder and Thumbiran are not known, but the two senior Sanral officials would have been closely involved in overseeing the implementation of the board’s new scoring system on procurement. Asked about the employment status of Mulder and Thumbiran, Sanral said it was “not aware of any dispute between itself and any employee in relation to the procurement policy issues currently serving before the courts”. In the past, Sanral used a bidder’s (or company’s) B-BBEE rating to allocate 10 or 20 points regarding compliance with the SOE’s preferential procurement requirements. Companies with a Level 1 B-BBEE rating (the highest and most coveted empowerment status) could automatically receive the full amount of points. In May, Sanral changed the weighting of the 10 and 20 points for preferential procurement, which has angered players such as H&I Construction and others. H&I Construction said Sanral’s changes would relegate a bidder’s B-BBEE level rating to a mere one point, in the case of a 90/10 tender (where the tender is valued at more than R50-million), or two points in the case of an 80/20 tender (where the tender has a value equal to or above R30,000 and up to R50-million). “[As a result of amendments to the tender scoring system] Sanral has elevated black ownership and sub-contracting to targeted enterprises to respectively five points (10 points in the case of 80/20) and four points (eight points in the case of 80/20) of the scoring of tenders that use the 90/10 scoring regime,” argued H&I Construction. Construction companies have spent billions of rands over the past decade to boost their empowerment profiles so that they can do business with the state. Sanral has defended its new tender scoring system, saying it is “committed to the constitutionally enshrined imperatives of economic transformation and will continue to pursue the government’s transformation objectives accordingly”. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2023-08-28-sanral-doubles-down-on-new-procurement-rules-despite-signs-of-tension-in-its-corridors/

Creamer Media | 24 August 2023 BMG has donated 55 high resolution monitors to the Redtank ICT Academy - a skills development organisation, with a mission of empowering communities through the provision of technology skills. “BMG’s passion for skills upliftment goes back many years and we are very proud to support education programmes that help learners enter the workplace with confidence and credibility,” says Darryn Wright, Group Marketing Executive, BMG. “BMG’s social responsibility programme encompasses an ongoing commitment to investing in education in order to promote the growth of technically skilled South Africans, especially those from previously disadvantaged communities. “BMG is proud to be part of the Redtank ICT Academy’s motivating programme that equips enthusiastic learners with the necessary knowledge, skills and values for successful careers. We are very pleased to have been able to donate high resolution monitors to this worthy organisation, which will be used as much needed IT equipment to teach graphic design and many other valuable development skills.” The Redtank ICT Academy is a registered non-profit company, that aims to assist communities to address the high unemployment rate and skills shortage especially amongst the youth in rural communities, as well as the lack of inclusion of women and people living with disabilities. According to Sydney Mokhethi, a director of the academy, the team is passionate about Information and Communication Technology (ICT) skills training, as every industry now uses some form of technology to produce goods and supply services. The academy’s focus includes ICT skills transfer and qualifications of unemployed youth, promoting and creating access to technology training across the country and to provide a platform for people interested in careers in ICT. The academy also offers life skills programmes that focus on leadership, decision making, career choices, university preparation and work readiness. Training curricula also include entrepreneurship development, to foster a future generation of motivated and successful entrepreneurs. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/ict-skills-are-our-future-2023-08-24

Nomathole Nhlapo | 25 August 2023 The Broad-Based Black Economic Empowerment Act, No 53 of 2003 (B-BBEE Act) and the regulations promulgated thereunder (B-BBEE Regulations) govern the effective participation of Black people in the South African economy. The B-BBEE Act aims to promote a higher growth rate of ownership and management, increased employment, skills training, and the involvement of communities in economic activities, more equitable income distribution and the granting of equal access to government services for Black South Africans. The B-BBEE Act aims to redress the historic economic inequalities as a result of apartheid, which excluded a large portion of the South African population, being Black people, from the primary economy of South Africa. The impact of this policy was particularly damaging to the ability of Black women to meaningfully participate in the economy. The Codes of Good Practice for B-BBEE and sector specific codes (B-BBEE Codes) provide the framework for interpretative principles of B-BBEE that specify the elements against which an entity will be measured to determine its B-BBEE compliance rating, together with the methodology for measuring each element of B-BBEE. The B-BBEE Codes have included key provisions that are aimed at empowering Black women and providing enhanced recognition of certain categories of Black people that include Black women. The impact of the B-BBEE Codes on the participation of Black women-owned businesses in economic activity is outlined in each element of B-BBEE and is discussed below. Ownership and management The ownership element measures the extent to which Black people are owners of businesses. Black people can be direct or indirect participants in the ownership structure of a company, an existing close corporation, a co-operative, a trust, a broad-based ownership scheme, or an employee share ownership programme. By way of an example (which illustrates the manner in which ownership by Black people generally - and Black women in particular - is encouraged), the broad-based ownership scheme rules outlined in Annex 100 (B) of the B-BBEE Codes require at least 50% of the fiduciaries of the scheme must be Black people and at least 25% must be Black women. Entities receive points for the management control scorecard by meeting the targets for participation of Black people and Black women at board, executive management, senior management, middle management, and junior management levels, and for employing Black people with disabilities. Skills development The skills development element measures the extent to which employers carry out initiatives designed to develop the competences of Black employees and Black people. The measurement criteria for skills development targets expenditure on learning programmes for Black people and expenditure on bursaries for Black students at higher education institutions. The aforementioned targets are broken down according to the relevant economically active participants (EAP) as determined and published by Statistics South Africa. The EAP statistics are reported according to the following race groups: African male, African female, Coloured male, Coloured female, Indian male, Indian female, White male, and White female. The compliance target for skills development is split in proportion to the prevailing EAP statistics. Enterprise development The enterprise and supplier development element measures the extent to which entities procure goods and services from empowering suppliers with strong B-BBEE levels and provide support for the growth of Black-owned businesses. This element allows companies to receive points on procurement spend from empowering suppliers that are at least 30% Black women-owned based on the applicable B-BBEE recognition levels as a percentage of the total measured procurement spend. Additionally, B-BBEE procurement spend from generic entity suppliers that are at least 51% Black-owned or at least 51% Black women-owned (utilising the flow-through principle) can be recognised under the enterprise and supplier development scorecard. The B-BBEE Codes encourage entities to support procurement from Black-owned and Black women-owned businesses in order to increase the participation of these businesses in the mainstream economy. Socio-economic contributions The B-BBEE Codes recognise socio-economic development contributions that companies can advance through initiatives that promote access to the economy for Black people. Socio-economic development commonly takes the following forms: programmes with the specific objective of facilitating income-generating activities for Black people as targeted beneficiaries; development programmes for women, youth, people with disabilities, people living in rural areas; support of healthcare and HIV/AIDS programmes; support for education programmes, resources and materials at primary, secondary and tertiary education levels, as well as bursaries and scholarships; community training; skills development for unemployed people and adult basic education and training; or support of arts, cultural or sporting development programmes. There is still much work to be done to implement the objectives of the B-BBEE Act and the B-BBEE Codes and ensure an inclusive business environment – especially for Black women. Female-led businesses need to be adequately supported by legislative frameworks, business, government, and the communities in which they operate. Women have the power to be decision-makers and occupy strategic positions in business. The spirit of equality, equity and collaboration, bolstered by the necessary legal support, will see women thrive in all sectors of the economy. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/717/241334.html

Qunintus Sliep | 25 August 2023 SA has one of the highest youth unemployment rates in the world. In the first quarter of 2023, the unemployment rate for people aged 25-34 was 39.1%, which means that for every 100 young people in this age group, only 61 are employed. Such a staggering unemployment rate can be attributed to a few factors including global uncertainty, an economic downturn, and a growing mismatch between skills and demand. Though our government has taken several steps to address youth unemployment, it is critical that every business, industry and sector acknowledge that we all have a role to play in turning the tide on this growing crisis. Temporary Employment Services (TES) providers can play a key role in facilitating the integration of young people across sectors, through skills and development initiatives that focus on training and equipping the future of the workforce for every industry. The youth unemployment crisis has several negative consequences for young people, their families and the country, perpetuating cycles of poverty, leading to increased crime and contributing to social unrest. The South African government has taken a few steps to address the youth unemployment crisis, such as the National Youth Development Agency, which is a government agency responsible for the promotion of youth development through skills development programmes, entrepreneurship programmes and job placement programmes. The Youth Employment Service (YES) is a programme that provides young people with 12-month work opportunities to gain work experience, develop skills and improve their chances of finding permanent employment. Additionally, this is underpinned by the Employment Tax Incentive to encourage businesses to hire young people, providing businesses with a tax rebate and B-BBEE points for every young person they hire. Despite these efforts, the youth unemployment crisis in SA remains a serious problem, strongly suggesting the social responsibility that lies in the private sector industries to take action and actively advocate for youth employment. In doing so, businesses can play a critical role in addressing the injustices of the past and building a more equitable society, while reaping commercial benefits such as improved operational performance, enhanced business reputation and ensuring the future sustainability of the skills and labour necessary for commerce. TES suppliers occupy a unique position in the labour market, ideally positioned to engage with all relevant stakeholders to address the youth unemployment crisis, and are located between employers and employees, within reach of various government youth development initiatives and the education sector. TES providers can act as a catalyst and conduit for change. From a young jobseekers perspective, TES suppliers are a means to access training programmes and upskilling opportunities that can enhance individual employability. This can help fill the gap between the demand and supply of the skills needed to revitalise the South African economy, equipping job seekers with the necessary skills for current and future job demands. From an employer perspective, TES suppliers can offer flexible workforce solutions that enable companies to scale their workforce size and composition in response to fluctuating demands. This flexibility can help businesses optimise costs while still providing work opportunities to individuals who may otherwise struggle to find full-time employment. Additionally, TES suppliers can help to drive youth employment and skills development in SA by actively seeking to collaborate with educational institutions to provide young people with the skills they need to succeed in the workforce. Continued monitoring of SA’s unemployment statistics, especially among the youth, is crucial to evaluate the effectiveness of all measures. Despite post-pandemic obstacles, the adaptability and resilience of the South African workforce continue to shine through. TES suppliers can play an active role in turning desperation into hope. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sowetanlive.co.za/opinion/columnists/2023-08-25-quintus-sliep-corporates-need-to-turn-tide-on-youth-joblessness/

Many organisations choose to make upfront payments for Learnership salaries or wages. However, when opting to go this route, an organisation may only claim in the specified Measurement Period that aligns with the corresponding financial period. For example, in October 2022, ABC Traders makes an upfront payment for Learnership salaries or wages. In December, their financial year ends; thus, a new Measurement Period begins. At ABC Traders, following B-BBEE Verification, may only claim from October 2022 to December 2022. The upfront payment for salaries or wages between January and September 2023 fall outside the Measurement Period, so it will not form part of this claim but for the next B-BBEE Verification. The result of this scenario is that only the salaries or wages payment for October, November and December 2022 are claimable. Skills Development Services are available for Members for assistance around upfront payments for Learnerships.

A successful vendor application is what allows a customer to purchase goods or services and pay their supplier with pre-conditions. However, to get to the stage where business flows between a supplier and a customer, due diligence is essential to protect the customer and the supplier. Part and parcel of due diligence of a vendor application is requesting documentation which confirms that the applicant is a good corporate citizen with good financial standing. However, many organisations request documentation that is not relevant or in a prescribed format and which will cost the applicant time and money. The following is a non-exhaustive list of relevant information that could put an organisation applying to be a supplier into a favourable position. This list, however, excludes additional legislative expectations as set out by institutional bodies such as bargaining councils: Trading name of organisation and registration details; Require - organisation’s registration documents. How an organisation was registered, whether as a Close Corporation, Proprietary Limited or Sole Trader; Require - organisation’s registration documents. Shareholder information; Require - share certificates, Company Share Register and certified identity documents. VAT statement; Require - VAT Registration Certificate. Tax Clearance; Require - SARS Tax Clearance Certificate. Contact information; In most cases, this information only needs to be provided and not evidenced. Necessary information would include physical and postal addresses, telephone, cell phone and fax numbers, website address and, where possible, two contact email addresses. Banking information; Require - A certified letter from the bank to confirm account details, or a cancelled cheque. B-BBEE threshold indicated by annual total revenue; Require - B-BBEE Certificate, CIPC EME Certificate or an Affidavit. Black’ Ownership and ‘Black’ Women Ownership Status; Require - B-BBEE Certificate, CIPC B-BBEE EME Certificate, Affidavit, share certificates and identity documents. Confirmation of safety and compliance standards, for example, NOSA certification; issued certificate. Declaration of any ‘Conflict of Interest’. Acceptance of an organisation’s terms and conditions. Enterprise & Supplier Development Services are available to assist Members with understanding these requirements.

Daniel Steyn | 23 August 2023 The multi-billion-rand contract for the building and running of Mangaung Correctional Centre was supposed to benefit the community of Bloemfontein. But 20 years after it was signed by the Department of Correctional Services and a private company, Bloemfontein Correctional Contracts, very little is known about any benefits to the community. The multi-billion-rand contract for the running of Mangaung Correctional Centre was supposed to benefit the Bloemfontein community but appears mainly to have benefitted multinational security company G4S. The activities and profits of G4S’s black empowerment partners and a “community trust” that was supposed to empower the community are shrouded in secrecy. The contract costs the government R45-million a month and has cost about R8-billion to date. Some of the profits from the R1.8-billion contract to build and manage the Mangaung Correctional Centre, made notorious by the high-profile escape of Thabo Bester, were supposed to be used to develop the community of Bloemfontein. But though the price of the contract has soared to nearly R9-billion since it was signed in 2000, there is little evidence that this has happened. In 2000 the government signed a contract with a private company, Bloemfontein Correctional Contracts (BCC), to build and operate a private maximum-security prison in Bloemfontein. The terms of the contract and the full shareholder list of BCC have never been revealed. But according to the Department of Correctional Services there are five main shareholders, including three black empowerment partners, each of which owns an equal share of the company. One of those partners is a community trust, mandated to run projects to uplift the community of Bloemfontein. But apart from a relatively small education project, there is no evidence to suggest that much has been done to achieve that goal. The escape in May 2022 of convicted rapist and murderer Thabo Bester from the prison, 28 km from Bloemfontein, thrust the prison into the public eye and the government is now moving to end the contract. At the time it was signed, the contract between the Department of Correctional Services and BCC was projected to cost R1.8-billion. This included R300-million to build the prison, and R1.5-billion to operate the prison for 26 years, after which it was to be handed over to the department. But the cost of the contract has soared, at a rate higher than inflation, since then. In April 2023, the Department told Parliament that it had paid R7.8-billion to BCC since the start of the contract and expected to pay another R2-billion until the end of the contract in 2026. Justice Minister Ronald Lamola told Parliament that the Department was facing affordability constraints in meeting its contractual obligations. Multinational security company G4S owns about 20% of BCC and also has a contract with BCC to manage the prison. Every month the department pays R45-million to BCC for the running of the prison. This covers the running of the prison by G4S and other sub-contractors who provide catering and health services. But like the other aspects of the deal, details of the management contract with G4S and how much G4S has profited from the contract, are shrouded in secrecy. Although G4S has recently attempted to distance itself from BCC, referring to itself as a non-controlling “minority shareholder”, the company indisputably has intimate ties to BCC. For example, one of the directors of BCC is Cobus Groenewoud. He has also been with G4S since 2016, according to CFO South Africa, previously as regional finance director for G4S Africa and since 2021 as regional commercial director of G4S Africa. Groenewoud testified on behalf of both G4S and BCC during the recent Parliamentary inquiry into Thabo Bester’s escape. Empty promises of black empowerment The five key shareholders of BCC each own about 20% of the company. Apart from G4S, they are: Old Mutual and three black empowerment companies - Ten Alliance Mangaung, Fikile Mangaung and Ikhwezi Community Trust. These three companies were registered shortly before the contract was signed. Bloemfontein Correctional Contracts told Parliament in 2004 that the Ikhwezi Community Trust had been established “as a vehicle for identifying needs in the local community and using the dividends generated by the company, to address these needs”. Parliament was told that Ikhwezi Community Trust would have a “budget” of R225,000 a year to run projects with three main focus areas: education and training, small business development, and socio-economic development. These projects were supposed to run for “at least two years”. But whether they did, and whether Ikhwezi Community Trust has received dividends from profits made by BCC is not clear. Ikhwezi Community Trust is called a “Trust”, but it is registered as a Proprietary Limited Company. Trusts are supposed to be registered with the Master’s office and have a board of trustees and a list of beneficiaries. GroundUp asked the Ikhwezi Community Trust whether there is a registered trust that receives profits from Bloemfontein Correctional Contracts, and how the company uses its money to uplift the Bloemfontein community. They did not respond. On two occasions, G4S has also mentioned the Ikhwezi Community Trust in its Social Responsibility reports. In 2010, G4S paid the salaries of 20 teachers to offer extra maths and science lessons to school children during the winter holidays and presented manual skills training to 225 learners. G4S’s 2010 report also mentions a weekend extra class program run by Ikhwezi Community Trust. Asked whether the company plays any role in overseeing Ikhwezi Community Trust spending, a spokesperson said that “G4S does not control or have any oversight over the Ikhwezi Community Trust, as it is not a trustee, and nor does G4S have any involvement in trustee appointments”. We also asked the National Treasury and the Department of Correctional Services whether they play a role in overseeing the “Trust”. The National Treasury declined to comment and the Department of Correctional Services did not respond. How the other empowerment partners in the consortium have benefitted from the contract is also unclear. The directors of Ten Alliance Mangaung are Pappie Mokoena, who was mayor of Mangaung between 2000 and 2005 and again briefly in 2023, and his brother Lebogang Mokoena, a businessman who once sat on the board of Bidvest. Pappie Mokoena is also the sole director of Ikhwezi Community Trust. Fikile Mangaung is linked to the Fikile family, which owns several companies that do business with the government. Fikile Mangaung participated in the construction of the prison. The full shareholding of Bloemfontein Correctional Contracts and its empowerment partners is also unknown. Although Parliament was told in April 2023 by both G4S and the Department that each of the five main shareholders owned 20% of BCC, GroundUp has ascertained that there are other smaller shareholders too. These include the Consolidated Retirement Fund for Local Government. In 2009 and 2010, former COPE MP Hidagrade Ndude declared that she was a shareholder of Bloemfontein Correctional Contracts and Ten Alliance Holdings (the holding company of Ten Alliance Mangaung). The profit and loss accounts and balance sheets of BCC are not public and attempts by GroundUp to get information from BCC, Pappie Mokoena, G4S, National Treasury, and the Department of Correctional Contracts were unsuccessful. In the early 2000s, the Institute for Security Studies wrote a report foreseeing future problems with the long-term financing agreement and the lack of an independent regulatory agency. The report also recommended that the concession contract be released publicly. But 20 years later the contract is still confidential. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’ https://www.groundup.org.za/article/mystery-surrounds-black-empowerment-gains-from-bloemfontein-prison-contract/

Kuben Chetty | 22 August 2023 The BRICS summit starts today, with more than 40 heads of state expected in Johannesburg to discuss the expansion of the bloc, trade and partnerships in what is being described as a “new world order”. The inclusion of leaders such as Brazil’s Luiz Inácio Lula da Silva, India’s Narendra Modi and the People’s Republic of China’s Xi Jinping would have been significant in itself, but President Cyril Ramaphosa has also extended invites to African leaders and the Global South. The Russian Federation will be led by Foreign Minister Sergey Lavrov, while President Vladimir Putin will join the summit via video link. Putin and Ramaphosa reached a formal agreement for the former not to attend after the International Criminal Court (ICC), of which South Africa is a full member, issued a warrant of arrest against Putin for alleged war crimes related to the war in Ukraine. By yesterday, the SAPS and the Johannesburg Metro Police Department had cordoned off parts of Sandton’s business district in anticipation of the delegates. The theme of “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism” underpins the bloc’s aims including peaceful resolution of conflict, trade agreements that benefit partners, the development of economies and to commit to the UN Sustainable Development Goals. One of the issues to be discussed is the expansion of the bloc, with 22 countries, including Türkiye, Indonesia, Egypt and Argentina, having applied to join BRICS. Another issue on the table is how BRICS countries can trade in local currencies. Professor Anil Sooklal, Ambassador-at-Large for Asia and BRICS and South Africa's BRICS Sherpa, said the summit would run concurrently with the BRICS business forum, which not only provided an opportunity for the bloc’s countries and the private sector to gather, but was also an opportunity for the African sector and private sector from the Global South to engage. “A large number of countries have converged on South Africa, and the business sector will look at deepening economic interaction, trade opportunities and partnerships.” Sooklal said the importance of the country chairing the summit was that it was also important for the continent. “The focus will be on the African Continental Free Trade Area agreement and the opportunity for mutual benefit between BRICS countries and Africa.” South Africa’s overall trade with its BRICS partners has increased by an average growth of 10% between 2017 and 2021, and the bloc accounted for 21% of South Africa’s global trade last year. Ebrahim Patel, the Minister of Trade and Industry, speaking at the BRICS business forum in a discussion on the manufacturing sector at Gallagher Convention Centre yesterday, said there was a shift driven by the emergence of new technologies and innovations. South Africa signed two memorandums of understanding with China at the event to help fast track industrialisation. One agreement was concluded by the Department of Trade, Industry and Competition (DTIC) with the China Africa Development Fund, making R10 billion available to accelerate the industrialisation of South Africa’s economy, specifically the manufacturing sector. The other was between the Industrial Development Corporation (IDC) and the Bank of China, which was described as a mutually beneficial agreement for increased trade. Patel said the BRICS gathering provided an opportunity for reflection and the sharing of ideas, partnerships and opportunities. “Member countries play a key role in harnessing green industrialisation and digital industrialisation to transform our economics, our societies and the lives of our citizens. “South Africa is ready to partner with all of the BRICS countries on the development of new energy vehicles and sharing of technologies, raw materials, and of capital and market experience in a mutually beneficial partnership.” Patel said he wanted to encourage BRICS members to enter into partnerships and joint ventures in new technologies and in green industrialisation. “Increased investment can be boosted by encouraging your companies to open manufacturing operations in South Africa and on the African continent.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/mercury/news/brics-deals-signed-ahead-of-summit-16b70ca2-02a1-4390-beaa-943d03569b5f

Sandi Kwon Hoo | 22 August 2023 Northern Cape Premier Dr Zamani Saul believes that a strategy needs to be developed to attract and maintain young skilled professionals in the Province. NORTHERN Cape Premier Dr Zamani Saul believes that a strategy needs to be developed to attract and maintain young skilled professionals in the Province. During a visit by Deputy President Paul Mashatile, on the occasion of the Human Resource Development Council (HRDC), at Sol Plaatje University on August 18, Saul said graduates preferred to relocate to bigger centres. “No young doctor or engineer wants to come here. We must develop a programme to bring them back to the Province,” said Saul. He added that the Province would develop labour-intensive sectors to address unemployment. He indicated that R210 million had been set aside for equipment for technical schools, youth service centres, skills programmes for unemployed youths, and learnerships and bursaries in renewable energy. “An amount of R45.2 million will go towards skills programmes, learnerships, internships and apprenticeships for 991 beneficiaries.” Saul added that a trade test centre would be constructed in Prieska, along with a Fourth Industrial Revolution centre and plumbing trade test centre in Upington and an engineering trade test centre in Okiep. Saul said that R150 million that was awarded for study loans through the Northern Cape Premier’s Education Trust Fund had been written off. “A total of 223 students benefited from this scheme to study at various institutions of higher learning.” He stated further that 5,478 students had received assistance from the National Students Financial Aid Scheme (NSFAS) at technical and vocational colleges. “Grade 9, 10 and 11 school leavers are encouraged to undertake vocational learning programmes.” Saul also highlighted the need for information technology infrastructure, high-tech resources and tools, and more lecturers trained in the Fourth Industrial Revolution (4IR), as well as the low enrolment numbers at TVET colleges, as some of the challenges. He added that 145 doctors are being trained, with 37 due to graduate this year through the Nelson Mandela-Fidel Castro medical collaboration programme. Saul said that 70 students had completed nursing diplomas while 33 students graduated in general nursing and 21 in midwifery as a means of creating a pool of specialist nurses. “He said 53 graduates were trained in the management of childhood diseases.” He indicated that 60 percent of academic staff at Sol Plaatje University possessed doctorates in philosophy (PHDs), while 106 postgraduate students were studying degrees that were needed to grow the economy. “There has been an improvement in teaching and research capacity, where 46 researchers supported the expansion of research relevant to the needs of the economy.” Saul also highlighted the green hydrogen project, digital mining, the ocean economy and Boegoebaai harbour as projects that could boost the provincial economy and international trade. Mashatile said the social pacts that were signed were aimed at creating skills needed to transform the economy and society through higher education, technical and vocational and skills training, innovation and research. “We cannot have economic development without higher education and training, research, innovation and development. “Most crucially, you cannot achieve any of these outcomes without quality primary education with a strong emphasis on mathematics and science education.” Mashatile stated that with its mineral riches, the Northern Cape should become the leader in careers such as chemistry, heavy-equipment operation, environmental consulting, mine surveying and geology as well as mining, geological, electrical and project engineering. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dfa.co.za/news/strategy-needed-to-attract-and-retain-skills-premier-saul-39344bc2-1be0-4aca-acb0-bc5eb97a545f/