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- COSATU URGES PARLIAMENT TO STRENGTHEN AND EXPEDITE THE LONG AWAITED PUBLIC PROCUREMENT BILL
Cosatu | 15 September 2023 The Congress of South African Trade Unions (COSATU) urges Parliament to strengthen and expedite the long-awaited Public Procurement Bill. This is a long overdue progressive bill that will lay the foundation for a single public procurement system across the entire state, e.g. departments, municipalities, entities and State-Owned Enterprises. Currently there is no single public procurement legislative framework and as a consequence, the situation in many state institutions is akin to something from the wild west. The existing legislative gaps were brought to a fore in 2022 when the Constitutional Court declared that Treasury lacked the legislative powers to set local content and Broad Based Black Economic Empowerment (BBBEE) public procurement criteria. The Zondo Commission heard countless evidence of how our leaky public procurement systems enable industrial scale corruption and wasteful expenditure. COSATU engaged extensively with Treasury on the Bill at Nedlac. We are pleased we reached consensus on many key interventions and the majority of the Bill’s provisions. Our support for the Bill is premised upon its: Establishing a single public procurement framework for the entire state. This will enable common standards to be established across an often fragmented and chaotic government institutions. Requiring public procurement processes take into account and support local content and BBBEE. This is key to supporting and creating local jobs and transforming our still racially skewed economy. Requiring a single online portal be set up where all tender information will be available to the public. This will shine a massive spotlight on the murky world of tenders and help expose and discourage corruption. Enabling the centralised procurement of certain key items to enable the state to save the fiscus badly needed revenue. Empowering the Chief Procurement Office in Treasury to intervene and halt public procurement that falls foul of the law. This will be a powerful tool to tackle often openly corrupt government tenders. Whilst the Federation supports this critical anti-corruption bill and looks forward to its passage by Parliament, we believe the Bill and its regulations need to be strengthened to: Elevate local content into a requirement for public procurement. This is key to protecting and growing local industries and badly needed jobs. Incentivise whilst blowers who expose corruption. This will be key if we are to turn the tide in this existential battle. Require the disclosure and recording of any relatives of politically influential persons who receive tenders as a way of preventing the abuse of public procurement by persons in senior office. It is critical Parliament move with strengthen expedite this progressive Bill into law before the conclusion of the 6th administration. We cannot afford any further delays in rebuilding our public procurement system. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.polity.org.za/article/cosatu-urges-parliament-to-strengthen-and-expedite-the-long-awaited-public-procurement-bill-2023-09-15
- ‘SANITY WILL PREVAIL’ IN PREFERENTIAL PROCUREMENT RULES DISPUTE – WBHO
Roy Cokayne | 15 September 2023 Group says new tender scoring system ‘makes no sense’. JSE-listed construction and engineering group WBHO believes sanity will prevail in the dispute between major construction groups and the South African National Roads Agency (Sanral) over the road agency’s new preferential procurement rules for its tenders. WBHO CEO Wolfgang Neff said this week that sense must prevail in the dispute with Sanral. “To allocate five points for 100% black ownership, in percentage terms, that is 5% government would be paying more for using 100% black-owned business,” he said. Neff stressed, for instance, that WBHO’s management does not own the company. “I think exco [executive] ownership is less than 1%. WBHO is owned by its staff members through Akani with 20%, the PIC [Public Investment Corporation] owns a chunk of us, and then pension funds. “I just think it makes no sense what the guys [Sanral] are doing,” he said. Neff added that another criteria of Sanral’s new preferential procurement policy is for main contractors to subcontract more than 35% of the project, which is currently the case. However, Neff said a Sanral project is extremely complex, and the main contractor is taking on all the risk and providing the guarantees. “So to start farming out the critical work to contractors who don’t have the experience or skill set becomes just too risky. It makes no sense,” he said. Court challenge Sanral is facing a high court challenge after allegedly unilaterally introducing the new preferential procurement scoring system for its tenders earlier this year. The new scoring system significantly downgrades the importance of the broad-based black economic empowerment (B-BBEE) Act ratings of most bidders. An urgent application by Cape Town registered H&I Construction to interdict Sanral from implementing the new scoring system when adjudicating two specific tenders, pending an application to review and set aside this new scoring system, was heard in the High Court in Gqeberha in July. Judgment was reserved and has not yet been handed down. WBHO has applied to join Part B of H&I Construction’s application to review and set aside the new scoring system. H&I Construction challenged the decision by Sanral to change its scoring system for the award of the tenders on the grounds that: It does not comply with the requirements set out by Section 2 of the Preferential Procurement Policy Framework Act 5 of 2000; and It was introduced without H&I Construction being consulted. Francis Chemaly, commercial manager at H&I Construction, said the new scoring system Sanral now seeks to employ “is unconstitutional and irrational and therefore reviewable both on grounds of legality and under the Promotion of Administrative Justice Act”. “Sanral introduced these changes to its tendering system without consulting those directly affected by it, including the applicant [H&I Construction]. “The proposed new scoring system is so unfair, so irrational, uncompetitive and cost averse, that potential bidders such as the applicant [H&I Construction] will simply not be able to present a bid on a viable, cost-effective basis, and have any hope of scoring sufficient points in a fair process to have the bid awarded to it, should Sanral be permitted to proceed with its new scoring system for these tenders,” he said. ConCourt ruling The new scoring system introduced by Sanral follows the February 2022 Constitutional Court judgment that ruled that then minister of finance Pravin Gordhan had acted beyond his powers in promulgating new regulations in 2017 that introduced pre-qualification B-BBEE criteria that bidders had to comply with before they would be permitted to proceed to the next stage of the bidding process. This Constitutional Court defeat led to current Minister of Finance Enoch Godongwana repealing the 2017 regulations and replacing them in 2022 with new regulations that allow organs of state to determine their own preferential procurement policies pending the promulgation of the Public Procurement Bill. WBHO and other major construction groups have a lot to lose because of the new scoring system. Neff said a significant uptick in activity from Sanral resulted in a 43% increase in activity from the local roadwork sector in WBHO’s financial year to end-June 2023. He said the high levels of roadworks on hand at the beginning of the period were further supplemented by the award of: The R3.5 billion Keyridge project along the N3; A R1.2 billion improvement project along the R63 to the intersection of the N6 near Bhisho; A R2.9 billion project in a joint venture for the construction of the N2 Wild Coast Highway Section 20 between the Msikaba Bridge and the Mtentu Bridge; and Four additional mid-sized projects with a combined value of R1.4 billion. Neff added that post the group’s year-end, the roads and earthworks division had conditionally been awarded an additional R1.3 billion project to be executed in a joint venture. WBHO’s road and earthworks increased its order book by 131% to R14.78 billion at end-June 2023 from R6.4 billion in the prior year. By sector, roadworks comprise 62% of WBHO’s enlarged order book compared to 26% in the prior year. WBHO’s consolidated order book grew by 43% to R32.5 billion at end-June 2023 from R22.2 billion the previous year. Neff said Sanral still has a lot of projects that are out to tender and a lot of projects that are still pending. “It’s just the whole procurement issue [that needs] to be sorted out for them to award those things [contracts],” he said. “I think reason should prevail, and then there’s a whole heap of work for everyone in this country.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/news/companies-and-deals/sanity-will-prevail-in-preferential-procurement-rules-dispute-wbho/
- MINISTER BRIEFS PARLIAMENT ON THE BLACK INDUSTRIALISTS POLICY
SA News | 13 September 2023 Trade, Industry, and Competition Minister Ebrahim Patel has highlighted the significant strides achieved by the Black Industrialists Policy within the food and energy sectors. The transformative policy, initiated in 2015, is reshaping South Africa's economic landscape by nurturing new enterprises led by black South Africans. Briefing the Portfolio Committee on Trade, Industry and Competition on Tuesday, Patel said historically transformation policies primarily focused on facilitating black ownership in existing enterprises. However, the Black Industrialists Policy centres on promoting the development of new enterprises, fostering entrepreneurship and ensuring the emergence of businesses controlled by previously marginalized groups. During the briefing, Minister Patel presented 46 case studies of Black Industrialists across the country in the food and energy sectors. The evolution of empowerment policies over time has broadened their scope. Initially, they centered on individual share ownership, enabling capital accumulation among black South Africans. Subsequently, they embraced broad-based empowerment and community initiatives. Today, the policy prioritises Black Industrialists, supporting individual black entrepreneurs with controlling stakes in new firms and employee share ownership (workers empowerment). Minister Patel underscored that the Black Industrialists Policy is just one pillar of a broader transformation agenda. Other transformation instruments include industrial financing, sector master plans, localization, competition measures, B-BBEE codes, equity-equivalent investment programs, special economic zones and state preferential procurement. The Black Industrialists Policy spans various industries, including agro processing, automotive components, textiles, steel and metal fabrication, mining, machinery and equipment, aerospace equipment and technology. "The Black Industrialists Policy represents a pivotal shift in South Africa's transformation strategy. It fosters new enterprise development, entrepreneurship, and economic inclusion while addressing historical disparities and promoting innovation,” Minister Patel said. “The policy's impact on the food and energy sectors underscores its significance in driving South Africa's economic transformation,” the Minister said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.sanews.gov.za/south-africa/minister-briefs-parliament-black-industrialists-policy
- POLITICAL INTERESTS ABUSING ORIGINAL PURPOSE OF B-BBEE ACT, NOTES MASHABA
Thabiso Goba | 13 September 2023 Though ActionSA supports affirmative action programmes that address the apartheid-created racial inequality in the country's economy, the party’s president has called for the act to be repealed. JOHANNESBURG - ActionSA supports race-based affirmative programmes, however it is against government's Broad-based Black Economic Empowerment (B-BBEE) policy. The B-BBEE Act of 2003 was introduced by the South African government to address the racial inequality in the country's economy due to apartheid. In ActionSA's draft policy document, under economic justice, the party recognises that black, coloured, Indian and Asian people still face exclusion from opportunities. However, ActionSA President Herman Mashaba said the B-BBEE Act should be repealed, as its original intention was being abused by political interests. "Included in our proposal is the establishment of the Opportunity Fund, an unprecedented fund contributed by the South African businesses that will invest exclusively in grassroots opportunity generation in black, coloured and Indian communities that have been historically disadvantaged," he said on Tuesday. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://ewn.co.za/2023/09/13/political-interests-abusing-original-purpose-of-b-bbee-act-notes-mashaba
- ENGEN JOINS HANDS WITH BREEDE VALLEY APD FOR CASUAL DAY CELEBRATIONS
Creamer Media | 13 September 2023 Engen and the Breede Valley Association for Persons with Disabilities (BVAPD) celebrated Casual Day, which is South Africa’s leading fund-raising and awareness campaign for Persons with Disabilities. Launched in 1995, Casual Day is an annual awareness and fund-raising campaign held on 1 September benefiting person with disabilities. Each year, South Africans are encouraged to go to work, or school dressed differently and to wear the official Casual Day sticker and merchandise to show their support. As part of the festivities, the BVAPD had a variety of fun filled activities, including games and competitions for staff, partners, and members of the disabled community. Engen handed over a cheque for R262,000, as part of the second instalment of a three-year pledge totalling R848 680, which was made to the Breede Valley APD in 2022. BVAPD is a Western Cape-based non-profit organisation that renders therapeutic, social and community development services to persons with disabilities in the areas of Worcester, Rawsonville, De Doorns, Touws River and surrounds. The inclusion of people with disabilities is a key focus area of Engen’s social investment, with all supported projects seeking to create sustainable value for all parties concerned. Amongst various success stories, Engen’s support for the BVAPD is to drive a new skills-based pilot project called WeMove. BVAPD’s Michelle Vos said: “We are extremely excited to report that the pilot has been such a success that we have managed to secure off-site positions for thirteen of our beneficiaries at various organisations including a major grocery chain, local panel beaters, a creche and a bike shop. Vos thanked Engen for their support, which she said had a far-reaching impact on beneficiaries, their families, and the community of the Breede Valley. “We are grateful to Engen for assisting us in empowering persons with disabilities to improve their socio-economic future,” commented Griessel. “Access to skills development and employment for persons with disabilities remains extremely limited and deprives them of taking their rightful place in the socio-economic life of South Africa,” she added. According to Engen’s Stakeholder Engagement and Transformation Manager, Dr James Xolani Nyawera, the company’s support of the Breede Valley APD was part of its drive to help create an equitable society where persons with disabilities can share access to every sphere of educational, work, and social life. “Together we can forge a future that is inclusive of all people,” commented Dr Nyawera. “As a caring and inclusive company with ‘heart,’ this aligns with Engen’s commitment to the United Nations Sustainable Development Goals, which endeavour to ensure a better and more sustainable future for all.” As a company, Engen champions nine of the UN’s Sustainable Development Goals (SDGs), including SDG 4 – Quality Education, which aims to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all and SDG 8 – Decent Work and Economic Growth, which aims to drive progress, create decent jobs for all and improve living standards. “For Engen, disability inclusion is one of the company’s key social investment focus areas, giving us an opportunity to contribute towards inclusive rights in South Africa,” added Dr Nyawera. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/engen-joins-hands-with-breede-valley-apd-for-casual-day-celebrations-2023-09-13
- JUST SHARE REPORTS SLOW PROGRESS ON GENDER DIVERSITY IN LEADERSHIP ROLES AT JSE TOP 40
Cameron Mackay | 12 September 2023 Nonprofit organisation Just Share has released the results of a study assessing gender equality at board and executive level at the JSE Top 40. “While women make up 46% of South Africa’s economically active population – and despite a significant increase over the last 20 years in representation of women in the lower-to-middle occupational levels – only 35% of board seats and 25% of executive level positions at the Top 40 companies are held by women,” states Just Share. The company also points out that, while transformation in South Africa’s labour market remains a significant challenge, there has been more focus on racial transformation than there has on gender equality. “Despite the considerable strides made in reducing gender gaps in education, there remain significant gender disparities in labour market outcomes. This is reflected in the under-representation of women in senior decision-making roles across the private sector.” Over two decades after the promulgation of the Bill of Rights, and the introduction of legislation to give effect to the right to equality in the workplace, the twenty-third 'Commission for Employment Equity Yearly Report (2022 to 2023)' finds that “the South African labour market continues to be racialised and gendered”. The report also finds that “the provision of opportunities appears to remain inherently linked to certain population groups and gender at the upper occupational levels”. Just Share points out that the JSE Top 40 companies are no exception to these trends. Services, trading and distribution company Bidvest Group is the only company in the Top 40 with gender parity or better at both board and executive level, Just Share notes. Seventy-five per cent of the company’s board positions are held by women, and 50% of its executives are women. Only four other companies have gender parity at board level (miners Exxaro Resources and Impala Platinum) or executive level (multinational metals company BHP Group and retailer Woolworths). Just Share also stresses that only five of the Top 40 have company boards led by female chairpersons, including miners AngloGold Ashanti and Impala Platinum, local banks Standard Bank and Capitec, and retailer Shoprite. Further, only four in the Top 40 have female CEOs, namely Anglo American Platinum, Bidvest Group, Exxaro Resources and retailer Clicks Group. The JSE Listing Requirements require issuers to adopt a policy for the promotion of gender diversity at board level, as well as to report on the application and consideration of the policy and on the progress made towards achieving voluntary targets. “Compliance with these requirements is patchy across the Top 40. Eighty per cent of the Top 40 companies have publicly available policies and gender diversity targets at board level. These targets are usually set well below 46% (which would reflect the percentage of women who are economically active) or 50% for gender parity. Gender diversity targets are seldom updated even when they have been achieved, and some companies set targets which are below what they have already achieved. "In response to questions from Just Share at the JSE’s yearly general meetings, the JSE has repeatedly stated that it takes no responsibility for monitoring compliance with the board gender diversity policy requirements of the Listings Requirements, and that it expects shareholders to monitor and exert pressure on listed companies for the achievement of gender equality.” Just Share argues that this approach is not in line with guidance from the Sustainable Stock Exchanges (SSE) initiative, of which the JSE is a member. The SSE recommends that exchanges take a number of steps to advance gender equality, including setting gender targets or other requirements for listed companies, promoting transparency on the market’s gender performance, and addressing barriers to gender equality on company boards. “The exchange and the institutions which invest in its issuers have significant power and opportunity to advance gender equality, but there is much more for them to do to ensure that women are more equally represented in senior leadership roles. “Asset managers and asset owners should be playing a much larger role in engaging companies which have not adopted gender diversity policies and targets to ensure that they do so, and in driving the adoption of gender diversity targets at all issuers which are ambitious enough to accelerate progress towards gender equality,” the organisation states. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/just-share-reports-slow-progress-on-gender-diversity-in-leadership-roles-at-jse-top-40-2023-09-12
- LOCAL NPO SEVEN FOLD MYSTERY LAUNCHES NEW PROJECT
Wayden Michaels | 12 September 2023 The skills development provider hosted their very first programme which was a success and said that they’re now ready to collaborate with companies to bridge the unskilled youth gap. Local skills development NPO, Seven Fold Mystery launched a new programme in partnership with NACOSA – a community service organisation working to build strong, equal, and healthy communities free from the burden of HIV, Aids, TB and gender-based violence. The programme is aimed at young women between the ages of 15 to 24 years and the launch took place at Roodepoort City Hall from September 4 to September 6. This three-day intervention programme focused on empowering young women to build an Aids-free future and addressing gender-based violence issues around communities which saw ‘No Means No’ sessions, financial literacy, and sexual reproductive health classes presented. The free intervention strategy also saw mentorship offering over six months, referral, and layering to relevant partners and certified courses, while beneficiaries were awarded certificates at the end of the three days. Seven Fold Mystery is a non-profit organisation, which has been operating for three years now and is dedicated to skills development and industry-related activities. Their mission is to empower vulnerable, young, and disabled individuals by providing opportunities for training, skills development, employment, and personal pride. Their dedication to inclusion, diversity, and empowerment motivates them to develop skills, employment opportunities, personal development, and community participation. “At Seven Fold Mystery, we are dedicated to nurturing talent, fostering growth, and creating lasting change. Join us in our journey to empower the vulnerable, youth, and the disabled, and together, let’s build a more inclusive and prosperous future,” Kopano Ntsele Toguen, the founder of the NPO, said. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://roodepoortrecord.co.za/2023/09/12/npo-launches-new-project/
- MICROSOFT SMME SKILLS INITIATIVE FOCUSES ON AI
Staff Writer | 12 September 2023 Microsoft South Africa has embarked on a skills development training programme to train 2 000 local small, medium and micro enterprises (SMMEs) in artificial intelligence (AI) skills. According to a statement, the tech giant will equip SMMEs for an AI-powered future, setting them on a trajectory of sustainable growth through the Microsoft for Start-ups Founders Hub, which provides entrepreneurs with free technology resources. The programme particularly targets SMMEs specialising in developing smart solutions for government departments. As AI increasingly helps businesses across the globe to evolve, Microsoft says its initiative looks to pave the way for a more inclusive future and help position Africa’s SMME sector at the forefront of global digital transformation. The first training sessions were recently delivered in Durban, in the lead-up to the GovTech 2023 conference, taking place from 12 to 14 September. The workshops leveraged the low-code capabilities of the Microsoft Power Platform, to help SMMEs build solutions and applications that are fuelled by data and AI. “Through this initiative, we want to help equip SMMEs with the skills and understanding they need to develop and provide AI-driven solutions that empower government to not only modernise processes, but also improve decision-making and unlock efficiencies and cost savings,” notes Lerato Mathabatha, public sector director at Microsoft South Africa. The Microsoft Founders Hub was launched in Africa in 2021, to provide entrepreneurs with access to a self-service hub that delivers a range of resources, including tools like Microsoft Azure, GitHub and Microsoft 365. It also assists SMMEs with go-to-market and business support. The hub currently offers support for 1 000 African start-ups, according to Microsoft. The Microsoft Work Trend Index highlights the potential of AI not only as a technological tool, but as an enabler of business efficiency and innovation. “We recognise that training is not a once-off activity. Post this training at GovTech, we will continue to provide SMMEs with access to resources through the Founders Hub. Making AI technologies and skills accessible to SMMEs is an important step forward if we want to drive a more digitally-inclusive, and active business landscape in South Africa,” says Mathabatha. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/content/8OKdWMDXKJNMbznQ
- SELECTING A B-BBEE RATING AGENCY
Ethics, skills & competence are at the top of the due diligence list when selecting a B-BBEE Rating Agency. Firstly, an organisation must ensure that they engage the services of a B-BBEE Rating Agency in line with the R47-03 document that does not allow B-BBEE Rating Agencies to provide B-BBEE Consulting services. Secondly, organisations must ensure that their chosen B-BBEE Rating Agency allocates a team with the technical expertise to ensure the B-BBEE Verification process is smooth. Remember, an organisation is within their rights to request CVs about the team undertaking their B-BBEE Verification. It is encouraged that Members adopt a Due Diligence process when selecting a B-BBEE Rating Agency. Verification Preparation Services are available to Members to assist with planning for the B-BBEE Verification process.
- MEETING SKILLS DEVELOPMENT TARGETS
Skills Development is an intrinsic part of building a transforming economy. It incentivises organisations to use 6% of their payroll annually for Skills Development interventions. The core aim is to facilitate development to create sustainable employment, thus inviting more people to participate in the economy. Some organisations invest what they can afford, whilst others aim to fund the complete 6% for Skills Development. However, due to a disconnect on where the spend would be most effective and how a meaningful investment in higher education, training or learnerships, internships or apprenticeships could lead to absorption, they only meet the sub-minimum requirements. It Is encouraged that Members develop and maintain a sustainable Skills Development strategy. Skills Development Services are available to assist members in developing Skills Development strategies.
- Y.E.S ADMINISTRATION COSTS
Youth Employment Service (Y.E.S) B-BBEE legislation and the subsequent Practice Note 1 of 2018 are clear that expenditure for the initiative and Skills Development must remain independent of one another, which extends to administration costs. Clause 7 of the legislation references Informal Spend for Category F & G training initiatives featuring in the Skills Development Matrix which states: “7.1 Informal Skills Development expenditure for Y.E.S employees will be recognised during the Verification Process of the Skills Development element under Amended Code Series 300, Statement 300. Y.E.S Measured Entities will be able to claim up to 50% of their Skills Development Spend as Informal Training (Category F and G of the Skills Development Matrix) against the Skills Development Scorecard”. Further reference appears in clause 1.11 of the Practice Note: “1.11 Y.E.S Measured Entities will be able to claim up to 50% of their Skills Development Spend as Informal Training (Category F and G of the Skills Development Matrix) against the Skills Development Scorecard for Y.E.S Eligible Employees only”. Therefore, administration costs for Y.E.S Employees would fall under Preferential Procurement Spend and not Skills Development. Y.E.S Management Services are available to assist members in understanding requirements under the Y.E.S Initiative.
- IMPROVED AWARENESS AND UNDERSTANDING OF BEE SECTOR CODES MAY BE AN ANTIDOTE TO CONSTRUCTION MAFIAS
Sibongile Vilakazi | 12 September 2023 South Africa faces infrastructure setbacks and is starved of much needed investment to drive the economic reconstruction and recovery outlook. Despite an arsenal of legislative provisions aimed at driving transformation, our economy remains concentrated in the hands of a few, exacerbating inequality and resulting in an economic landscape where gross domestic product growth can never grow to materially change the conditions of the majority. While the state has targeted infrastructure led economic recovery among others, impatience with the declining attitude to transformation and empowerment both in the state and private sector, all manner of upheaval and even criminal conduct are emerging in the ecosystem. Key among these is the rise of the phenomenon of Construction Mafias. These collectives are often referred to as ‘forums’. Speaking at a recent webinar, the Minister of Public Works stated that the general complaint laid by these groupings is “that contracts in the government are given to one and the same companies”. According to the Global Initiative against transformational organised crime report on “the construction mafia in South Africa”, “this often starts with a smaller group of people with a specific identity, and who are capable of inflicting violence, from which a ‘broader group identity may emerge, serving to band disparate agents into a recognisable network that ensures their loyalty”. Most famous among these are the ‘Amadela ngokubona’, emerging out of KwaZulu-Natal. There have been numerous calls for regulating business forums or collectives representing interest groups. This open sea of malicious actors loosely labelled as forums potentially hamper the work of organisations like Black Management Forum (BMF), whose proven track record can be conflated with these emerging trends. While commitments are made to confront this scourge of criminal elements in some of these groupings, we have to also assess the extent to which knowledge of our transformational laws and specific sector codes (built-environment in this context) can equip black entrepreneurs and professionals with needed understanding of how to navigate an ever-changing market with innovative strategies to unlock new economic opportunities for their businesses. The BMF regularly embark (as per the mandate of developing managerial skills) on a series of webinars to engage these important questions. These include the State of South Africa’s forums, presented by Dr Ongama Mtimka, whose doctoral thesis looks into the “political economy of transformation in Nelson Mandela University Bay: a critical analysis of the construction sector”. The BMF also frequently provides engagements aimed at better understanding of Broad Based Black Economic Empowerment (BBBEE) sector codes. It wouldn’t be surprising if the rise of lawlessness in the construction sector will soon be blamed on BBBEE. The existence of a policy is not the problem in spaces where law enforcement needs to be heightened. However, we are beginning to suspect that there is limited awareness of these provisions in the BBBEE Act and as another form of literacy challenges in South Africa, there may be too many professionals and entrepreneurs who navigate socio-economic South Africa today without having read any of these laws. If Professor Marwala’s “those who do not read should not lead” dictum is anything to go by, it then must be said that black businesses and professionals will not lead their own agenda for economic development and empowerment if they do not read the same texts that are intended to aide this in the form of the BBBEE Act. Nothing demonstrates this more than the case before court between Sanral and a host of construction sector entities who filed an interim interdict to the awarding of tenders on road stabilisation at the Eastern Cape High Court. Sanral have elected to use the powers given to them by Treasury regulations to make shifts in how they allocated preferential procurement scores to tenderers. This has resulted in what the applicants call the relegation of B-BBEE level rating and the elevation of black ownership and subcontracting to targeted enterprises. This is bound to be an instructive case in an environment where legislation needs to be transformative to defeat inequality and high concentration of markets. The spectre of violence in the construction sector must be assessed against this shifting legislative environment. The ‘real forums’ working with government and other stakeholders of development and empowerment must put these laws to the test through innovative entrepreneurial undertakings for the benefit of the black players who continue to languish on the fringes of the South African economy. It will not be an ignorance of these laws that will end violence, but a better and deeper understanding and engagement of them that will steer us all towards a turnaround path. We in the BMF will continue to promote awareness of sector specific codes to inspire a value creating agenda for transformation. Those who must lead must therefore read! ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/economy/improved-awareness-and-understanding-of-bee-sector-codes-may-be-an-antidote-to-construction-mafias-f5c29c83-f3b5-47f8-aa4d-dc3b6e87b213














