Search Results

Nicola Daniels | 14 December 2023 The Department of Forestry, Fisheries and the Environment (DFFE) has come under fire for “abandoning” the target of 75% of budget expenditure on Broad Based Black Economic Empowerment (BBBEE) and black-owned enterprises. In response to a parliamentary question from EFF MP Nazier Paulsen, DFFE said it had revised its policy in line with the new Preferential Procurement Regulations (PPR) of 2022. Paulsen wanted to know why the target of 75% of budget expenditure on Broad Based Black Economic Empowerment and black-owned enterprises was removed. Minister of Forestry, Fisheries and Environment Barbara Creecy responded that the target was set in 2019 for the DFFE 5-year strategic plan when the National Treasury’s Preferential Procurement Policy Framework Regulations of 2017 were still in effect. “The DFFE revised its policy in line with the new Preferential Procurement Regulations (PPR) of 2022. The department’s new supply chain management policy makes use of specific goals applicable for preferential procurement. The specific goals in the policy allocate preference points to enterprise/entities from the following categories: More than 50% ownership by black people, more than 50% ownership by women; and more than 50% ownership by people with disabilities.” The department said it stipulated one or more of these specific goals for its tenders. Paulsen said this week that the ANC had never been a party empowering black people and transforming the economy in favour of black people who had been marginalised. “The ANC has now adopted a neo-liberal type of approach,” he said. The Black Business Federation said the move was inconsistent with the national policy of BBBEE and had not undergone public scrutiny. “We need to revise that law to make it inclusive. We have BBBEE which provides a certificate as a regulation and works with a standard scorecard you get tax rebate. How will PPR work? The law needs scrutiny before it can be applied. It has loopholes that might exclude some and make room for bias and favour big companies in big business. We need to enhance BBBEE, not fall short or cut corners. We still remain fractured; the imbalances of the past are still there,” Black Business Federation spokesperson, Sifiso Shezi said. Cosatu parliamentary co-ordinator Matthew Parks said they supported preferential procurement. “It is critical expenditure and can be used to support preferential procurement, localisation and job creation. Parliament will soon pass the Public Procurement Bill which will strengthen preferential procurement, localisation and job creation requirements for public expenditure across the state. This will be an important boost and binding across the state,” he said. President of the General Industries Workers Union of South Africa, Mametlwe Sebei said: “The attempt to invent a class by means of a state legislation is always going to give us a problem that has its own contradictions. The economy is monopolised, you cannot reverse that. “The reality is that monopoly is a feature of modern capitalism all across the world. The issue is how do you insert black capitalism in that monopolised capital. “Fundamentally, it is undoable on the scale required. Capitalism is about profit. The idea that somebody is just going to hand over money based on racial markers as people in majority, that is never going to go smoothly. “That’s why we are seeing fronting. The mining industry is the most remarkable example of the failure of BBBEE as they argue once empowered always empowered, which means if they comply once they don’t have to comply again and again. “Changing regulations after regulations will not address the fundamental problem. We say nationalise key sectors of the economy/industry on the basis of public ownership by democratic control to contribute to national wealth for everyone.” Policy analyst Nkosikhulule Nyembezi said even when seen through Paulsen’s eyes, things “do not look good right now” for Creecy’s specific goals in the policy to allocate preference points to enterprises and entities with 50% ownership by blacks, women and people with disabilities. “In 2022, the minister announced revisions to its policy in line with the new Preferential Procurement Regulations (PPR) of 2022 and targets by which she expects to be judged. With an election looming, such targets matter more than usual amid widespread disappointment over the minister’s admission that the department has not set targets in line with specific goals, as per their policy. “Embarrassingly, despite the 2022 department’s new supply chain management policy, the waiting list for targeted enterprises and entities has just risen, as the minister’s admission of lack of targets has led to under-performance and not improvements. “Politically, this is the big problem that Minister Creecy seems unable to solve. She has defined herself as a minister who can deliver. Yet even if her priorities were the right ones, which they are, and the figures showed her implementation of the policy to be making progress in empowering the category of beneficiaries – they continue to show slow progress – she would struggle to persuade voters that she understands their priorities in the absence of set targets in line with specific goals as per the policy,” Nyembezi said. Economist Duma Gqubule said that the government was abandoning its own policies and unless there was pressure to revive the policy and mend the mistakes of the past, it was “as good as dead”. “If you look at issues like ownership, there are so many loopholes in law. The BBBEE code has become like an exam that is easy to pass. They (companies) get points they don’t really deserve. They make fatal policy mistakes, especially in the design. The compromises they made in the drafting of the mining and finance charter, for example, completely diluted the process of BBBEE. It’s supposed to be a measurement system. The department is taking its cue from government. The president doesn’t even talk about it in the State of the Nation Address. I don’t see the pressure from black business organisations to change it,” he said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/capetimes/news/creecy-catches-flack-over-bbbee-target-def99fa1-b25a-4248-a8fe-a0b545a4f399

Duma Gqubule | 12 December 2023 Quasi-public institution needs to be created to centralise job creation initiatives. In 2016 my fellow columnist on this page, Neva Makgetla, a senior economist at Trade & Industrial Policy Strategies, wrote a policy brief that brought attention to the growing surplus at the Unemployment Insurance Fund (UIF), which was then more than R100bn. She made an innovative proposal of using a portion of the surplus to finance a fiscal stimulus for the economy. In the wake of the Covid-19 pandemic in 2020, SA created almost R60bn “out of thin air” when it ran down the surplus to pay 13.8-million people who were temporarily unemployed during the lockdowns. According to the Treasury’s 2023 Budget Review, the UIF will have a surplus of R109.1bn at the end of the 2023/24 fiscal year. There was no need for the UIF surplus before the pandemic, and there is still no need for it now. But the government has run out of ideas on how to use it. Recently the department of employment & labour came up with a mad plan to spend R15bn to create 2-million jobs by the end of March 2024, a few months before the national election. A better option is to use the UIF’s surplus to significantly expand public employment. SA has three public employment programmes that had a budget of R17.8bn for 2023/24. They will create almost 1.8-million work opportunities and 900,000 full-time equivalent (FTE) jobs during this fiscal year. The Presidential Employment Stimulus (PES) had a budget of R9.4bn. It will create 500,000 work opportunities and 290,000 FTE jobs. The Community Works Programme (CWP) had a budget of R4.3bn and will create 250,000 work opportunities and 100,000 FTE jobs. The Expanded Public Works Programme (EPWP) had a budget of R3.1bn and will create 1-million work opportunities and about 490,000 FTE jobs. In addition, the Public Employment Services within the department received R1bn and the National Youth Development Agency (NYDA) R880.3bn. The 2023 medium-term budget policy statement (MTBPS) extended the PES, only for 2024/25, but there is no budget allocation. Ominously, the Treasury said: “The MTBPS proposes that the government should co-ordinate its approach to employment support. In this regard, significant portions of the EPWP and the CWP will be repurposed into the presidential employment initiative.” But cutting spending on other public employment programmes to pay for the extension of the PES makes no sense given the scale of the crisis. During the third quarter of 2023 the expanded  unemployment rate was 41.2% and 11.7-million unemployed people did not work. SA needs an annual GDP growth rate of 4.2% just to create jobs for the estimated 700,000 people who will enter the labour market each year until 2030. Since GDP growth alone will not be enough to create full employment, there must be other policy levers to create work. We must create a new quasi-public institution with professional management and civil society oversight that amalgamates all the country’s institutions that create employment: the PES, the CWP, the EPWP, Public Employment Services, the National Youth Service within the NYDA and Harambee, a youth employment accelerator. The new institution should have a three-year target to create 5-million work opportunities and 2.5-million FTE jobs at a living wage of R5,000 a month, indexed to the inflation rate. It should eventually develop the capacity to provide a job guarantee in SA. US economist Pavlina Tcherneva says a job guarantee is a public option for jobs. “It is a permanent, federally funded and locally administered programme that supplies voluntary employment opportunities on demand for all who are ready and willing to work at a living wage.” Civil society organisations, communities and companies could bid for job creation projects that would be evaluated based on objective criteria. A large transfer from the UIF surplus can provide the initial capitalisation for the new institution. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.businesslive.co.za/bd/opinion/2023-12-12-duma-gqubule-state-should-use-uif-surplus-to-grow-public-sector-jobs/

Tando Faku | 11 December 2023 In unlocking South Africa’s township economy, Evergrow Seedlings, an agribusiness startup founded in Soweto has grown significantly since its establishment in 2018 to become a prominent contributor in creating opportunities for locals. Founded by Andile Gcaza (Bsc. Biotechemistry) and Phetole Raseropo (BSc. Botany), the business now employs more than twenty people who work as gardeners and farmers. Through their hard work, they sell over a million seedlings across South Africa. The dynamic duo are also graduates of Saica’s Enterprise Development (Saica ED) Flagship Programme which empowers SMMEs to elevate their businesses by offering them financial excellence through financial bootcamps, financial coaching, affordable accounting services, using accounting graduates where possible, and develop their financial excellence reporting standards. They established the business after identifying a gap within modern food systems around primary agricultural production value chains. Through their participation in the programme, they now have an MS Excel comprehensive business plan with a financial model in place, three-year historic financial statements, five-year forward-looking projections on their income statements and a cash flow statement including a loan amortisation schedule. This means that they are now a credible business that can attract different kinds of financial investments and funding. The two agripreneurs are now acknowledged as prominent contributors to not only the South African economy but to also SMMEs that produce local products that are relevant to our heritage. Evergrow Seedlings strives to offer high turnover vegetable seedlings and primary consultation services to smallholder farmers in urban to peri-urban areas. Saica Enterprise Development (Saica ED) offers Financial Excellence to SMMEs through all designations of the South African Institute of Chartered Accountants (Saica). Saica ED thus partners with the Saica associated small and medium practices (SMPs) and other groupings within Saica to achieve Financial Excellence in both small, medium and micro enterprises (SMME) and entrepreneurial incubators nationwide. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/837/244545.html

Boksburg Advertiser | 9 December 2023 All trainees were given an opportunity to use a wheelchair or opaque glasses and a white cane. As South Africa marked National Disability Rights Awareness Month in November, the Transport Education Training Authority (TETA), in partnership with the City of Ekurhuleni, celebrated the completion of the universal access skills and capacity building programme. A certification ceremony was held in Boksburg to reflect on the programme’s outcomes and how all participants will utilise the knowledge and insight gained. In attendance was the City of Ekurhuleni’s MMC Transport Roads and Stormwater, Andile Mngwevu. He delivered a message of support and highlighted the municipality’s focus on providing quality, safe, reliable, and consistently available transport systems. The training intervention also sought to address latent and overt non-compliance by the sector to key legislation such as the National Land Transport Act and the Constitution. Awareness Fifty employees from the City of Ekurhuleni Bus Services participated in the training programme, including bus drivers and management. The training for management staff focused on the business case and legislative compliance reasons for implementing universal access within bus operations. James Motha, TETA’s senior manager of strategic projects and stakeholder relations, outlined the critical role that the organisation plays in delivering outcomes-based training, which enables stakeholders in the transport sector to acquire skills that can be utilised in the workplace and society at large. He highlighted the importance of developing soft skills alongside technical skills. Travel chain Lisa Venter, a universal access consultant who supported the design and implementation of the training programme, drew attention to key pieces of legislation, chief among these being the Constitution and the Land Transport Act, which are very specific about the realisation of universal access and disability rights. The Act places a focus on the requirement for the entire travel chain of a passenger to be universally accessible and factor in how people move from one point to another. If one part of the travel is not accessible to all people, then the entire system is deemed to be non-compliant. All transport operators must consider this, including the bus transport sector. The Act is geared to minimise and protect vulnerability and outlines how infrastructure, such as bus stops and stations, for example, must have sufficient lighting at night. Venter highlighted that South Africa has taken progressive steps to address race and gender-based rights infringements, but the country has yet to tackle disability rights challenges. This is the context in which the draft Disability Act is being formulated. “What is commendable, however, is that we have moved from a medical to a social model of approaching disability in South Africa. “While a medical model adopts the approach of ‘what is wrong with you as an individual and how can that be fixed’, the social model promotes social inclusion of people with disabilities and ensures they are accommodated in designing and implementing public infrastructure and accessing public services.” Deaf SA The eight-week-long training programme had very practical experiential learning outcomes, including drivers being taught basic sign language to equip them to communicate with deaf passengers and those with hearing impairments. Representatives from the South African National Deaf Association (Deaf SA) and Blind SA were invited to share their experiences as users of public transport systems, the challenges they face and the basics of dealing with persons with a disability. For example, when passengers had to use non-compliant buses, drivers would assist them by offering to carry or physically assist a passenger. Although one may think that this is the right thing to do, it goes against the Constitutional principles of ‘independence, equality and dignity’. If a system incorporates universal design and access, all passengers with any type of impairment or special need should be able to utilise the transport system independently, equally and without their dignity and privacy being curtailed. Know better Sephiwe Zwane, one of the bus drivers who took part in the training, said the programme was an eye-opener in terms of changing his mindset and behaviour towards people with disabilities. Speaking at the certification ceremony he said “When you know better, you do better”. All trainees were given an opportunity to use a wheelchair or opaque glasses and a white cane, to get on and off the bus. Lefa Moremedi, one of the Ekurhuleni Bus Services managers who took part in the training, highlighted how the training helped them to be strategic and intentional about being more inclusive of those with special needs when planning and procuring new buses. He said the municipality has been in the process of gradually phasing out busses that are not universally accessible. Since 2016 all new busses that have been procured are universally accessible. Budget limitations greatly impact the phasing in of universally accessible buses and must be approached as a process, not an event. The resounding success of the capacity-building programme has spurred the Transport Education Training Authority to consider extending the training intervention to have a national reach and target rural provinces that often struggle to implement universally accessible transport systems. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://citizen.co.za/boksburg-advertiser/news-headlines/local-news/2023/12/09/bus-services-staff-brush-up-on-disability-rights/

Bongani Mdakane | 4 December 2023 TW Civils provides services such as equipment hire and civil services for Sasol. Sasol has extended a contract of a white-owned company that was found to have committed fronting and was not BEE compliant. The chemical and energy giant appointed Nyapotse Incorporated to investigate TW Civils and Earthmoving to verify its BEE status. After the probe was completed, the forensic report found that TW Civils had been getting jobs that cost millions of rands from the petroleum company without a valid BEE certificate while using an employee who is a self-taught mechanic as a front. The BEE certificate that the company used expired in September last year. However, Sasol never questioned TW Civils in that regard. According to insiders within the petroleum company, the matter was raised on why TW Civils continued to benefit from the contracts, while there was clear evidence that the company was not compliant. “We asked pertinent questions on why TW Civils was still getting jobs within Sasol while it was clear it was not compliant. However, some of the senior officials kept on threatening us and told us that we ask too many questions. There were pushbacks, and we were told that TW Civils will continue to work as a contractor at Sasol,” said an insider. In the forensic report we have seen, TW Civils’ case is like the one of NJM Heat Treatment & NDE Services (NJM), another company that we reported about last week, that it was involved in fronting allegations and BEE fraud, which Sasol had also turned a blind eye to. “It is of paramount importance that we should highlight and state that the B-BBEE certificate provided to us by the company (TW Civils) has expired on 15 September 2022 and currently the entity does not have a valid B-BBEE certificate. “As a preliminary issue, the company’s audited financial statements for the year ending March 2022, indicates that the total revenue has significantly increased, which necessitates a different measurement of the company from a qualifying small enterprise to a large enterprise,” reads the report. Investigations also revealed that despite the authentication by the verification agency, it appeared that there were inconsistencies in the allocation of shares, considering, inter alia, the shareholders agreement and the share certificates. The petroleum company requires contractors to comply with BEE for them to be contracted, where the chemical giant demands a valid level 7 B-BBEE certificate, however TW Civils continued to get projects while not compliant. “In light of the supplier’s B-BBEE certificate having expired in September 2022 and a new and current certificate still not issued, the company has therefore not complied with the provisions of the agreement. “We have obtained a written confirmation from Sasol that there is no record of an “in-process” letter having been provided to Sasol by the supplier. There is , therefore, at outset, non-compliance as far as the requirements are set out,” reads the report. TW Civils, which has a turnover of R90-million-a-year, listed Bafana Shongwe as its 23% shareholder, while Dewald Te Water and Lindie Te Water own 45% shares through their other company called TW Stene, with Cleopatra Ndlovu owning 29% of shares through her company called Peculiar Care, with 3% shared held by Future Gift Education Trust on its part as a BEE partner. According to the report, it is stated that Shongwe’s shares were diluted from 23 to 20 ordinary shares. The report said there was no evidence suggesting Shongwe was compensated for the dilution and that there was no explanation provided by TW Civils in that regard, and also it appeared that Shongwe did not understand the basis of dissolution. The report stated that TW Civils failed to provide the employment agreement of the executive directors, and that Shongwe told the investigators that he only knew that his 20% shares were in machinery, not the company as a whole. The report revealed that TW Civils failed to submit essential documents to the investigators to assess any risk of fronting practices. TW Civils financial manager Louis Sauer said the report of Nyapose Inc was scrapped as the investigators were inappropriate in handling the matter. “We reported Nyapose for inappropriate conduct, and I don’t know where you got that report from. That report is not credible anymore as Sasol scrapped it. “Nyapose refused to give us time to get everything they needed and at that time our CEO had just died. “Sasol appointed another company to do the investigations and we are still waiting for findings in that regard.” Sasol media relations manager Matebello Motloung said: “Sasol takes allegations of B-BBEE fronting by its suppliers very seriously and has demonstrated unwavering will and commitment, on both a pro-active and reactive basis, to dealing with such matters decisively. “We are committed to maintaining the highest standards of ethical business conduct, and we hold our suppliers to the same principles.” “Upon receiving information that the supplier in question may be involved in B-BBEE fronting, Sasol appointed an independent law firm to conduct an investigation into the matter. The law firm completed the investigation and submitted its findings.” Motloung said that in addition to address the issue swiftly and decisively, it is crucial for Sasol to also act responsibly throughout investigative process. “The supplier was afforded a right-of-reply. To ensure fairness, and proper due diligence in our pursuit of the truth, we then appointed a second independent law firm to investigate the matter further. “The report that you are referring to, cannot be considered as the absolute final outcome of this investigation as the matter is under investigation still, by this second independent law firm. Should this investigation confirm any wrongdoing by the supplier in question, we will not hesitate in taking immediate and appropriate action to rectify the situation,” she said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/business/sasol-turns-blind-eye-to-another-report-exposing-bee-fronting-firms/

Daily News Reporter | 5 December 2023 Durban — The Construction Education and Training Authority (Ceta) and the Council for the Built Environment (CBE) are hosting the inaugural Built Environment Recognition Awards on Thursday evening at The Capital Zimbali Hotel in Durban, under the theme “Road to Professional Registration’’. At least 200-300 persons representing various Built Environment Professions are expected to attend the awards. Dr Msizi Myeza, the chief executive of CBE said the awards form part of the transformation agenda aimed at professionalisation, building a capable and ethical built environment sector. These awards will be held for the first time. “The awards recognise outstanding achievements in engineering, architecture, urban planning, construction, and related fields. They promote innovative and sustainable practices in the built environment sector while showcasing exemplary projects and individuals as role models for future initiatives. “They foster collaboration, knowledge exchange, and networking among professionals in the industry and raise public awareness about the importance of the built environment and its impact on quality of life.” He said the CBE represents roughly 100 000 members across six professional councils: 65 000 registered professionals and 35 000 candidates. “There is also a huge number of trained built environment personnel who have transitioned to other sectors such as banking, insurance, real estate, asset management, etc.” He said through ongoing human resource development, CBE has actively been on the road to promote professional registration in the built environment sector through impactful engagements with key stakeholders such as provincial and local government, industry players and various institutions of higher education and training such as the University of Johannesburg, UCT, University of KwaZulu-Natal, Durban University of Technology and TVET colleges. Collectively, the initiative has gained considerable traction. “The benefit of the recognition awards is that they will serve as motivation to built environment candidates and professionals that professional registration is an additional safeguard against unsafe practices. “Publicly, it demonstrates the practitioner’s ethical credentials and industry status (eg, Pr Eng, Pr Pln).” Myeza said professional registration increases practitioners’ chances of being employed, locally as well as abroad. “Professionalism builds confidence, promotes ethical conduct, and embodies as assurance that a person charged with the responsibility of driving public infrastructure is competent, among other credentials.” He said professional registration in the built environment is the highest order that a person can be accorded as part of his or her professional journey. “Besides, the monetary benefits that are accrued post obtaining a PR status, it enhances credibility to individuals within the sector. For example, as clients, employers, stakeholders and communities increasingly demand accountability and expertise when projects are implemented, having a recognised professional registered person becomes crucial. It not only instils confidence in clients that they are working with competent professionals but also helps employers in identifying and hiring the right talent for their projects.” He said statistics recorded in the CBE Annual Report 2022/23 are telling that only 14% of registered professionals in South Africa are women. Furthermore, looking at racial demographics, the report noted that 62% of registered professionals are white, followed by 25% African males, 9% Indian and 4% coloured. He said the picture becomes even bleaker when dissecting the slow progress or blockages in transforming the skills pipeline, where Africans and women are stuck as candidates due to a lack of employment opportunities and mentorship. For example, 62% of candidates are African, followed by 24% white, 9% Indian and 5% coloured. Only 28% are women. “It is glaringly obvious that 30 years into democracy, the built environment sector has not transformed and, therefore, by extension has not been professionalised. It is against this background that urgent interventions are required to ensure the built environment not only transforms its racial make-up but to that its representation is reflective of South Africa’s demography profile,” Myeza said. In October 2022, the Cabinet approved the National Framework towards Professionalisation of the public sector. Key in the Framework was the call for professionalising the built environment profession, which has “unfortunately been engulfed by several unethical dilemmas, including corruption.” The Council for the Built Environment, an overarching body and a developmental regulator of the built environment in South Africa has a legislative mandate to drive the transformation, professionalisation and skills development of the built environment together with various stakeholders, tertiary institutions, and the industry in line with CBE Act 43 of 2000. He said Ceta has a mandate to embark on research initiatives, accredit training providers and employers, develop occupationally directed qualifications and offer bursary opportunities, and create access to skills development for rural and township-based communities in line with the NSDP 2030. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/dailynews/news/awards-to-recognise-excellence-in-the-built-environment-27d6751e-2f82-4a46-a60c-7b97c979c33d

Susan Comrie | 2 December 2023 Former chief justice Sandile Ngcobo has eviscerated Karpowership’s Turkish owner over its “biased” and “oppressive” shareholders’ agreement with its black empowerment partners. Powergroup SA turned to arbitration when Turkey’s Karadeniz tried to evict it from the R218-billion deal to supply emergency power to Eskom for the next 20 years. In February, Karadeniz told Powergroup that it needed to fund its portions of a $5-million (R93-million) the Turkish parent said was needed to get the Karpowership deal over the line. When Powergroup did not deliver the funds, Karadeniz exercised a call option in its shareholders’ agreement that allowed it to seize Powergroup’s 49% for the princely sum of R83. Karadeniz, Karpowership’s Turkish parent company, owns 51% of the local joint venture through a subsidiary in Malta. Powergroup, which is owned by local businesspeople – Sechaba Moletsane, Ravin Rajoo, Sureshan Moodley and George Mokoena – held 49% until recently. But Ngcobo’s confidential ruling, delivered last week Friday, found that key clauses of the shareholders’ agreement – which only applied to Powergroup and not Karadeniz – smacked of discrimination, and were inconsistent with Powergroup’s constitutional right to equality. “The problem here is that the Call Option as well as the Trigger Events have as their only target, Powergroup,” Ngcobo wrote in his ruling, which amaBhungane has seen. “The impugned provisions are heavily biased in favour of Karadeniz. They were obviously tailored from Karadeniz’s point of view.” He continued: “They were not merely designed to secure contribution to additional funding but were designed to ensure maximum protection for Karadeniz against any breach of the [shareholders’ agreement] … by Powergroup while at the same time subjecting Powergroup to the most stringent and oppressive terms … This is manifestly unfair and unreasonable.” During the arbitration hearing, Karadeniz’ lawyers argued that the one-sided clauses were necessary to ensure Powergroup did not get a “free ride” in the deal. Summarising Karadeniz’ argument, Ngcobo wrote: “Reduced to its essence the assumption is that because Powergroup is a BEE entity and has brought neither capital nor technical skills to the Company, it has no vested interest in the success of the project. “This is so notwithstanding access to both capital and technical skills that Powergroup stands to gain by participating in the project. This assumption seems to be based on the premise that because of its contribution to the project, Karadeniz has much to lose if the project does not succeed and therefore it will not do anything that might constitute a trigger event. For this reason, there is no need to put in place contractual mechanisms to ensure it does not fall foul of any provision of the [shareholders’ agreement].” But Ngcobo rejected this argument: “No facts have been put forward to justify this assumption. There is utterly no basis for this assumption. If anything, it exposes the irrationality of the basis of the discrimination and its unreasonableness. The ineluctable conclusion is that the assumption is based on a predisposition about Powergroup as an entity. This is inimical to our foundational value of equality.” Powergroup also asked Ngcobo to consider whether the arrangement constitutes “fronting”, which is a criminal offence and punishable by up to 10 years in jail. However, while Ngcobo found that there is “a compelling argument” that the clause in question “violates the fronting provisions of the Empowerment Act”, he did not make a ruling on this, reasoning that it was enough to declare the clauses violated the “foundational value of equality” in the Constitution. The ruling, which is binding, gives Karadeniz 21 days to return the 49% stake in Karpowership to the BEE shareholders. The only upside for Karadeniz was that Ngcobo agreed that Powergroup had failed to respond to previous calls for funds, which in theory would allow Karadeniz to start the process to push Powergroup out of the deal again. Although it will struggle to get this right after Ngcobo declared the call option – that allowed Karadeniz to seize back the shares if Powergroup failed to provide funding for the project – “unenforceable”, leaving the two sides in a stalemate. This story was updated post-publication to include additional context on how Ngcobo’s ruling impacts Karadeniz’s ability to push Powergroup out of the deal for a second time. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://amabhungane.org/stories/verdict-karpowerships-owner-slammed-for-discrimination-against-bee-partners/

Staff Writer | 1 December 2023 The Broad-Based-BEE Commission has called for tighter legislation and greater powers to address companies that undermine transformation efforts in South Africa. The commission briefed the media on its work over the past 20 years on Thursday (30 November), highlighting the body’s intentions of rooting out and clamping down on businesses that are fronting as BEE-compliant. “To date, we have received 1,273 complaints that the commission has registered. Of those, 84% of them pertain to fronting,” said Lindiwe Madonsela, senior compliance manager of the BEE Commission. The B-BBEE Act has defined fronting practices to mean transactions, arrangements or other acts or conduct that directly or indirectly undermines or frustrates the achievement of the objective(s) of the B-BBEE Act or the implementation of any of the provisions of the B-BBEE Act. This effectively means businesses are misrepresenting their transformation standing. The Broad-Based BEE Commissioner Tshediso Matona has slammed these findings and described them as efforts to frustrate and oppose the commission’s work and undermine transformation in the country. “Recently, in my view, there has been an emergence of certain civil society groups that represent white interests, that have made it their business to attack transformation in South Africa,” he said. He also lamented the slow pace of law enforcement to take action against businesses that have been found to be inviolation of the current BEE legislation. The commission gave an update on the status of transformation across businesses in South Africa, stating that 33.9% of businesses are black-owned in South Africa – a 4.4% increase recorded in 2021. Madonsela said while this is an improvement, she noted with concern that, from a Johannesburg Stock Exchange (JSE) perspective, there are no companies that are 100% owned by black people in the country – based on reports the commission has received. Matona also highlighted the surge in fraudulent BEE-compliance certificates across businesses and has encouraged professionals to speak up against compliance issues and called for companies to play by the Triple BEE legislation. Matona added that efforts are now underway to strengthen legislation to ensure the prosecution of those businesses – calling for more powers to prosecute guilty entities, which he said will drive incentives to follow legislation and make the penalties clear. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/business/735407/bee-commission-is-coming-after-these-businesses-in-south-africa/

Shoprite Holdings | 27 November 2023 Small suppliers Hope Sonic, Jacobs Jam and Crispe Cookies are among the exceptional suppliers honoured at the Shoprite Group's 2023 Supplier of the Year Awards. Held at Blaauwklippen Wine Estate in Stellenbosch this past weekend, the awards recognise the invaluable contribution suppliers make to the Group’s success. Finalists across 12 categories were evaluated on criteria including the extent to which they had contributed towards the retailer’s growth and improved earnings, their stockholding and service levels, the efficiency of their administration processes, and their support at store level. The 2023 winners in each category are: General Merchandise & Furniture: Hope Sonic Toys Professional Suppliers: OUTsurance Insurance Fruit & Vegetable Producers: Stephan & Seuns Boerdery Fresh Departments: Crispe Cookies Alcoholic Beverages: Edward Snell & Co Groceries: Unilever Snacks & Beverages: Coca-Cola Perishables: Lactalis South Africa Personal Care: AMKA Products SMME: Jacobs Jam Company Sustainability: Faircape Group Private Label & Supplier Partnerships: Cleopatra Tissue Products In addition to the category awards, Tiger Brands was announced as the first ever winner of the Grand Prix accolade, which is awarded to a supplier that demonstrates exceptional overall performance and impact on the Group’s operations. Jacobs Jam is the winner of the 2023 SMME Award after their business recorded exponential growth after striking a deal with the Group a little over a year ago. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.shopriteholdings.co.za/newsroom/2023/shoprite-supplier-awards-2023.html

Karen Singh | 29 November 2023 The University of KwaZulu-Natal (UKZN) announced on Wednesday that it has received R20 million to assist in providing debt relief for students. The university said the cash injection was from the Moses Kotane Institute (MKI) and the newly-established merSETA Skills Development Fund, which helped ease the problems of skills gaps and the student debt burden within KZN. “The debt relief assistance is a beacon of hope, particularly for students from historically disadvantaged backgrounds, helping alleviate financial constraints and open doors to brighter futures,” said UKZN. Acting executive director of the UKZN Foundation, Steve Camp, said this assistance offered support to students during tough economic times. “Philanthropic support from UKZN partners such as the Moses Kotane Institute and merSETA lifts a weight from our students in tough economic times, freeing them to get into the job market, to lead healthy, joy-filled lives and find purpose in work, play, family and more. It is a gift beyond measure,” said Camp. MKI Acting CEO Thembelihle Mapipa said the institute was dedicated to addressing challenges faced by students from historically disadvantaged backgrounds. “Our focus over the years has been on making a significant contribution to improving the skills development of KZN’s younger generation. In approaching merSETA, we sought support to develop strategies that not only enhance employability and productivity but also contribute to economic growth and promote a more inclusive and equitable society,” she said. KZN MEC for Economic Development, Tourism, and Environmental Affairs Siboniso Duma said he supported the initiative. He said it was a testament to MKI's commitment to empowering the youth and fostering a stronger, more equitable society. “This programme is a significant step in the right direction for our province,” said Duma. UKZN said merSETA was committed to enhancing workforce employability, fostering economic growth, and promoting social inclusivity and equity. “The merSETA Skills Development Fund, championed by MKI, reflects a collective ambition to close the skills gap as well as upskill and re-skill individuals – a crucial component of the economic reconstruction and recovery plan. “The initiative not only holds the potential to drive KwaZulu-Natal’s economic resurgence but also promises sustainable growth in the long run.” Other higher education institutions, including the Mangosuthu University of Technology (MUT), Durban University of Technology (DUT), and University of Zululand (UNIZULU), will also benefit. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/mercury/news/ukzn-receives-r20m-cash-injection-to-relieve-student-debt-8170cc9d-bcc5-4b43-a969-048504cc2b0d

Editorial | 28 November 2023 The National Youth Development Agency (NYDA), working under the banner of the Presidential Youth Employment Intervention (PYEI), has officially opened applications for the second phase of the National Youth Service (NYS) programme. The NYS is a paid community service initiative designed by the NYDA to provide opportunities to young South Africans between the ages of 18 and 35 years who struggle to find jobs due to a lack of work experience, qualifications, or a matric certificate. The first phase of the NYS delivered 47 234 service opportunities to unemployed youth. And 7 456 of this cohort exited the programme and went on to long-term opportunities. It was a success, producing a group of individuals who have gone on to become entrepreneurs with the skills they learnt through the initiative. Nicholas Hlabane, 23, from Baloyi Village in Limpopo, completed his community service at Matome Malatji High School. With his NYS stipend, Hlabane purchased equipment to open his own internet café. He also set up an online studio where he hosts his own podcast. Abel Baloyi, a 31-year-old from Witten, Limpopo, used his skills and stipend acquired from the NYS programme to purchase a lawnmower and start his own grass-cutting and yard-cleaning service. With business thriving, he currently employs two other young people in his community. The NYS, along with its partners, is hosting roadshows across the country with the aim of encouraging the youth to apply for the programme. The first roadshow took place on November 21 at Letlhabile Community Hall in the North West. On November 23, the team was welcomed by a vibrant community of young people in De Aar, Northern Cape, where they further presented the opportunities NYS has to offer. The roadshow hit the Free State today (Tuesday) at Thaba Nchu Civic Centre and will be wrapped up in the Eastern Cape on November 30 at Jakes Gerwel Multipurpose Centre, Somerset East. Asanda Luwaca, the executive chairperson of the NYDA, urges the South African youth to apply for the NYS programme. “The National Youth Service is an opportunity for young people to serve their country through building their communities and bettering themselves. It is an opportunity for young people to grow, gain skills and increase their employability for absorption into longer-term opportunities.” Those looking to apply can visit the SAYouthmobi site on https://sayouth.mobi/Home/Index/EN, and once registered, search for “NYS” and follow the instructions on the opportunity card. Applications close on November 29. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/the-star/partnered/nyda-unveils-second-phase-of-national-youth-service-b29412ef-0abc-40e8-819b-e5136ae13dbf

As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice, a Black Designated Group Supplier is defined as follows: “means a supplier to the Measured Entity that is at least 51% owned by one or more of the following categories of ownership within its structure: (a) unemployed black people not attending and not required by law to attend an educational institution and not awaiting admission to an educational institution; (b) Black people who are youth as defined in the National Youth Commission Act of 1996; (c) Black people who are persons with disabilities as defined in the Code of Good Practice on employment of people with disabilities issued under the Employment Equity Act; (d) Black people living in rural and under developed areas; (e) Black military veterans who qualifies to be called a military veteran in terms of the Military Veterans Act 18 of 2011;” The above definition/concept is applied under the elements of Ownership and Enterprise & Supplier Development Amended General B-BBEE Codes of Good Practice. Technical Services are available to assist Members in further understanding the above as well as the application thereof.