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Justin Chadwick | 25 July 2023 In 2019 the Citrus Growers Association (CGA) launched a R307 million Economic Transformation of Black Citrus Growers (ETBCG) Programme in partnership with the Jobs Fund, Land Bank, Department of Agriculture, AGRISETA, the LIMA Rural Development Foundation and FNB. We are proud to announce that over the past 3 years just over R161.3 million of this funding has been approved and R78.9 million disbursed to support black grower citrus operations, creating 78 permanent and 625 seasonal jobs in total, and enabling 208 hectares of new trees to be planted. The ETBCG Programme was launched following the CGA applying to the Jobs Fund for a project that would make funding and technical support available to black citrus growers for orchard establishment, expansion and rehabilitation, as well as on-farm development of various infrastructure including packhouses, bulk-water supply and irrigation systems. The Jobs Fund committed R118 million to the project, with the Land Bank agreeing to contribute an additional R116 million in loan funding. The CGA contributed R24 million, while the Department of Agriculture and AGRISETA pledged R34 million and R12 million respectively. The LIMA Rural Development Foundation was engaged as project manager and FNB was appointed the commercial-funding partner following a tender process. What has made the ETBCG Programme unique, when compared to other transformation programmes, is the way the funding has been structured. Beneficiaries have received 36% of their funding as a pure grant, which has helped reduce their debt levels and assisted them in being able to make repayments. The remaining 64% has been structured as a blended loan at lower than prime interest rates. Another major focus area has been skills development of beneficiaries to make them self-reliant as well as training in surrounding communities so they can be employed by these farming operations. To qualify for funding, growers have to have a minimum of 60% black ownership (of both assets and operations) as defined by the B-BBEE Act of 2013, while priority has also been given to enterprises with 100% black ownership. Most importantly, applicants also needed to demonstrate that they would create permanent and seasonal job opportunities with the development funding. While the ETBCG Programme was launched in 2020, the COVID-19 pandemic impacted its roll-out, as well as a number of new challenges faced by the local citrus industry over the past three years, which has threatened the sustainability and profitability of farming operations. These include a major hike in farming input costs and freight rates as well as load shedding and operational issues at ports. Despite these challenges, we are pleased that the programme has disbursed R78.9 million to eight successful black farming operations across the country, with these funds being used towards access roads, land preparation, irrigation infrastructure, farm equipment, vehicles, fencing, packhouse equipment, a de-greening room, generators, a solar system, and a substation. Farmer Buyiswa Ndyenga from Sikhula Sonke Enterprises near Addo in the Eastern Cape says the programme helped considerably on their five farms. “The money came at the right time," she said. "The price of everything went up and citrus farmers were struggling. But the Programme's money helped us plant new orchards and erect a 9 km fence to stop the stealing of fruit." Luthando Farms near Kirkwood in the Eastern Cape was also a beneficiary of the programme. Farmer Nonkwanele Mzamo says a lot of work still lies ahead: "I am passionate about creating jobs. Because of the fund, it is easier to create jobs, and that feels good. Now we need to sustain these jobs." The CGA is extremely proud to be part of this ground-breaking programme, which has not only provided a major leg-up for black growers, who usually struggle to obtain loan funding and financial assistance, but has also focused on transferring skills to these farmers as well as creating new jobs in surrounding communities. The local industry has predicted that citrus exports could grow to 260 million (15 kg) cartons annually by 2032 if all role-players work together. With transformation of the industry a key priority over the next ten years, a target for black citrus growers’ contribution towards the overall 260 million vision has also been set, namely 50 million cartons annually. We believe the ETBCG Programme will contribute towards achieving this goal by assisting and supporting growers to expand their operations and export their produce to key markets across the world. The deployment of funds under the programme is expected to continue until March 2024, which will be followed by a monitoring period that will take place for another two years. The CGA would like to thank all the partners that have made the programme possible: the Jobs Fund, Land Bank, Department of Agriculture, AGRISETA, the LIMA Rural Development Foundation and FNB. We look forward to the ETBCG Programme continuing to support the increased participation of black citrus growers in the industry and in this way, contribute towards meaningful and sustainable transformation within the agricultural sector. Issued by CEO of the Citrus Growers Association (CGA), Justin Chadwick ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.polity.org.za/article/r789-million-disbursed-to-black-citrus-growers-under-the-economic-transformation-of-black-citrus-growers-programme-2023-07-25

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Bizcommunity | 26 July 2023 Africa's largest bid, tender, proposal, pricing, writing, and sales professional event: APMP SA's 14th Annual Conference. Doing risk right: Back to basics The Association of Proposal Management Professionals South Africa (APMP SA) is thrilled to announce its 14th annual conference on 12 September 2023, as a conference within the prestigious Smart Procurement World Indaba. As Africa's premier event in winning business through proposals and pitches, APMP SA's annual conference stands out as a must-attend event for businesses and professionals across all industries that need to propose or respond to tenders to win work. APMP SA covers a skills gap in the market and is designed to provide the global and local best practices required to prepare, develop, and submit compliant and compelling proposals, tender responses and pitches. Doing risk right: Back to basics Under the theme of 'Doing Risk Right', this year’s conference will delve into the fundamental principles and strategies essential for success in the competitive business landscape. The conference will feature industry leaders delivering valuable insights on qualifying opportunities, the power of storytelling, the importance of a compelling executive summary, and the role of compliance in winning business. Attendees will also gain invaluable knowledge on pricing strategies to secure wins, navigate the current public sector tendering environment, and master the essentials of winning proposals and pitches. Collaboration and networking opportunities For the third year in a row, APMP SA has joined forces with Smart Procurement World; the renowned conference attracts sales and proposal teams, procurement teams, decision-makers, small businesses, and organisations of all sizes. This partnership fosters shared networking and collaboration, providing an advantageous platform for buyers and sellers to form meaningful relationships and explore potential business opportunities. The conference's networking events will unlock powerful insights and facilitate market access, particularly addressing small businesses’ challenges. Exhibitors gain access to expose their brands to potential buyers across markets. The APMP SA and Smart Procurement World (SPW) support the mutual goal of promoting professionalism in the supply chain life cycle, promoting small business transformation and developing crucial skills. Elevating professional development In addition to the conference's rich content and networking opportunities, attendees will enhance their skills development. APMP SA's conference offers fit-for-purpose content contributing to Continuous Professional Development (CPD) units, ensuring participants acquire the necessary skills to build and enhance their businesses in the African market. Good governance and compliance Procurement is increasingly operating in an environment of increased scrutiny. SPW and APMP understand the importance of compliance and how to promote good governance. The mutual goal of improving the sourcing processes has led to a natural collaboration between the two organisations. It represents a significant commitment from both parties to deliver value to their members and audiences. “Supply-chain consists of both buyers and sellers. By bringing procurement (the buyers) and bidders (the sellers) together, we are driving open engagement, alignment and an increased focus on the professionalism of both functions. Tender fraud needs the complicity of two parties. The tender/proposal process is two-way, and both sides must work together.” says Larissa Cornelius, director of APMP SA. Supplier development To win business, companies need to propose and bid for work. The conference leverages synergies to drive positive industry changes and promote small business (SMMEs) development. “In the context of these unprecedented times assisting big and small businesses in professional and well-awarded tenders is a priority. We cannot afford to ignore the inefficiency, and it’s our responsibility to bridge the skills gap.” says Debbie Tagg, COO of Smart Procurement World Join us at APMP SA's 14th Annual Conference Date: 12 September 2023 Venue: Gallagher Estate, Midrand, Johannesburg Ticket Cost: APMP Members: R2,875.00 Non-Members: R4,140.00 The APMP SA's 14th Annual Conference is a one-of-a-kind platform for professionals dedicated to winning business through proposals, bids, tenders and presentations. Unlock your potential, gain industry insights, and maximise your chances of ethically winning business. Secure your spot today by visiting www.APMP.org.za or email annelize@apmp.org.za, where you can also explore individual and business membership options for ongoing support and professional growth. For more information, please contact: Annelize Smit APMP SA Administrator +27 (0)83 380 2317 annelize@apmp.org.za About APMP SA: APMP SA is the South African chapter of the global Association of Proposal Management Professionals. As a professional body and non-profit organisation, APMP SA aims to provide professionals with the tools, knowledge, and resources to enhance their skills. The Association of Proposal Management Professionals (APMP) was formed in 1989 and is the worldwide authority for professionals dedicated to winning business through proposals, bids, tenders and presentations. APMP promotes the professional growth of its members by advancing the arts, sciences and technologies of winning business. About Smart Procurement World Smart Procurement (SP) is the largest professional development event for procurement and inbound supply chain, supported and endorsed by industry professional bodies. SP also achieves professional development for procurement and supply chain professionals while achieving economic development objectives in each region through enterprise and supplier development linking small businesses to the supply chain. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.bizcommunity.com/Article/196/40/240490.html

In terms of the B-BBEE Act, on 18th May 2021, a Practice Note under Gazette #44591 was published by the Minister of Trade Industry & Competition. The notice outlines the rules for discretionary Collective Enterprises. The purpose is to clarify how Ownership by Collective Enterprises is defined as Broad-Based Schemes, Employee Share Ownership Programmes, Trade Unions, Not for Profit Companies, Co-operatives, Trusts should be interpreted under the Codes of Good Practice. Ownership Services are available to assist members with Ownership structures.

A B-BBEE Verification is based on the evidence presented. Therefore, when entering into an agreement with a Beneficiary, a contract must incorporate all evidential requirements. Although parties do not enter into an agreement with the mindset that things will go wrong, the mitigation of risks must drive such an agreement. Consequently, generic Beneficiary contracts do not apply to all. It is vital that an organisation highlights all the benefits in the agreement as well as how evidence is presented for a B-BBEE Verification at the date of signature. Challenges often occur when an organisation identifies benefits by default following the signing of a contract. One may not synchronise the date of agreement to suit a benefit later revealed. B-BBEE Verification Services are available to assist members to ensure that all documentary evidence is correct.

The 2023 Annual Employment Equity Roadshows have commenced whereby the Department of Employment & Labour travel to provinces across the country to share insights on Employment Equity legislation. This year’s Roadshows would involve many questions from organisations and individuals with regards to the implementation of the Amended Employment Equity Act, Sectoral Targets and the effective date of implementation. Human Capital Services are available to assist members in planning for future Employment Equity requirements.

Pretoria Rekord | 25 July 2023 The investment has empowered individuals with valuable skills and created a sustainable source of income by creating 27 new employment opportunities in Hammanskraal. Tshwane has welcomed a major boost to job creation in the township of Hammanskraal through a major foreign investor. Nestlé South Africa has this month made a bold move to invest R79-million in the local economic development of the Hammanskraal region, boasting skill development and job creation in the rural economy in the northern region of Tshwane. The investment in the area, which was also massively hit by a series of cholera outbreaks recently, has led to the creation of a cutting-edge coffee production plant in Babelegi, providing jobs and skills to the locals. The plant has already created 27 jobs, with more on the horizon. Of the 27 employees, 24 are employed in production and three are based in engineering within the plant. Not only will the community benefit from this venture, but the coffee market within Tshwane will also reap the rewards. The production plant will oversee the local production of Nescafé coffee mixes with 46% locally sourced ingredients. Tshwane MMC for economic development Hannes Coetzee said this new production line’s primary goal is to increase employment prospects in the Hammanskraal region. “Additionally, this is attempting to fulfil market needs and guarantee a consistent supply of coffee mixes.” Coetzee said Nestlé is one of Tshwane’s key foreign direct investors. “The company is making significant contributions to the city’s economic growth and development goals.” Coetzee said this commitment to community upliftment strengthens the community, both economically and through the provision of exceptional products. “Overall since Nestlé’s arrival they have invested around R400-million in the local economy, resulting in the creation of nearly 300 permanent job opportunities in the region,” Coetzee said. He said this investment in localising production exemplifies its commitment to building strong partnerships with local communities, fostering economic development, and embracing technological advancements. “By producing locally, Nestlé aims to streamline supply chain operations, reduce environmental impact, and ensure fresher products for consumers.” He said the city is appreciative of Nestlé’s contribution to its industrialisation and localisation initiatives. “We are grateful for their continuous loyalty, commitment and trust in South Africa’s future and the resiliency of Tshwane’s economy,” Coetzee concluded. Brian Soldaat of the Department of Trade, Industry and Competition emphasised the importance of government collaborating with the private sector. “This investment supports the growth of the local economy by localising production and this sets a positive example for the industry,” Soldaat said. He said the importance of collaboration with local communities, economic development, and sustainable business practices leads to the growth of the local economy. “This project has empowered individuals with valuable skills and created a sustainable source of income by creating 27 new employment opportunities in engineering and production.” Nestlé East and Southern Africa business executive officer Carl Khoury said this manufacturing plant demonstrates its dedication to the local market. “We take pride in our investment in this production plant as it reflects our dedication to nurturing the potential of the region and contribution to rebuilding the economy.” Khoury said this marks a significant milestone in the company’s commitment to meeting local market needs and supporting economic development. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://rekord.co.za/464359/r79-million-production-plant-investment-in-hammanskraal/

Arrive Alive | 24 July 2023 Engen has partnered with the Disability Economic Empowerment Trust (DEET) to launch an artisan training programme for 100 people with disabilities that will assist them with the skills required to enter the job market. Rolling out in Upington, in the Northern Cape this month, a group of 20 trainee beneficiaries commenced a one-month carpentry training course covering table, chair and cupboard manufacturing as well as door and ceiling installation. Working closely with Disabled People SA and various government departments, Engen and the DEET have worked together since 2019 on various initiatives aimed at enhancing the quality of life of persons with disabilities through the equalization of opportunities, poverty reduction, and promotion of social inclusion. Casvin Neville Jonkers, a beneficiary on the carpeting learnership said he thoroughly enjoyed the course, which was very challenging due to his disability, but he is feeling very excited about all the new techniques of woodwork he has learnt. “As an amputee, I can’t properly work with my left hand, but this course gave me all the skills I need and will definitely open doors for me. We learnt how to make furniture, how to install doors, cupboards and ceilings. “This is a dream come true. I feel I can express myself creatively through my hands and I hope to start a business in woodwork.” Sydney Coetzee says when he heard about the carpentry learnership rolling out in Upington, he made sure he was the first on the list. “I received my own took box which is the best gift I have ever received in my life. I want to thank Engen and DEET for bringing this very important training to Upington and for helping to develop people with disabilities. We all enjoyed the training so much that we asked for an extension.” Israel Malatsi said the training was very well organized, with excellent facilitators who went above and beyond. “I am truly grateful to Engen for funding this project and to DEET for bringing this skills development learnership to persons living with disabilities in my area. The Northern Cape has been neglected over the years.” To date, the artisan training programme has afforded 65 persons with the opportunity to developskills and competencies required to enter the workplace or even start their own business, enabling them to live a dignified life and contribute to the economy in a meaningful way. Engen’s Head of Transformation and Stakeholder Engagement, Dr James Nyawera says the project will provide skills and competencies which the beneficiaries will be able to use throughout their lives either as employees or as entrepreneurs. “The project is intended to improve the conditions and living standards of persons with disabilities, by providing participants with skills that they can use to earn a living,” says Nyawera. The skills programme will run over a six-month period and will also include refresher training sessions. It is open to South African citizens under the age of 35 and aims to provide occupational qualifications and practical skills for 35 plumbers, 30 wheelchair repair persons and 35 carpenters across the Eastern Cape, KwaZulu-Natal and the Northern Cape. Expressing his gratitude to Engen for their renewed support, CEO of the Disability Economic Empowerment Trust (DEET), Thabiso Phetuka says essential work skills and qualifications opens-up a whole host of new prospects for participants and guarantees sustainable livelihoods. “Our partnership with Engen provides hope to job seekers with disabilities and those who aspire to start their own businesses, who previously have been unsuccessful in securing a position, as a result of not having the necessary skills or confidence,” says Phetuka. Engen’s continued commitment to DEET fulfills South Africa’s ratification of the United Nations Convention on the Rights of Persons with Disabilities, which was signed in 2007, as well as the White Paper on the Rights of Persons with Disability that was approved by Cabinet in 2015 as part of domesticating the convention. “The rationale behind our drive to support persons with disabilities is not only about upholding the Constitutional principles of non-discrimination on the basis of disability but also to put tangible measures in place to support developmental interventions, so that people living with disabilities can become inclusive, contributing members of society,” adds Nyawera. Disability inclusion is one of Engen’s key social investment focus areas, giving the company the opportunity to contribute towards inclusive disability rights in South Africa. 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. “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,” comments Nyawera. In 2021, Engen partnered with DEET to launch a driver disability training programme for people with disabilities assisting 100 new drivers in five provinces with all the necessary requirements and skills needed to pass their learner’s and driver’s license and enter the job market. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.arrivealive.co.za/news.aspx?s=1&i=64161&page=engen-supports-upington-disabled-artisans-enter-the-workplace

Thank you for attending the session we hope to see you again soon. for upcoming events follow this link https://www.bee.co.za/training

Daniel Orelowitz | 24 July 2023 South Africa’s youth unemployment rate is staggeringly high, with 66.5% of all unemployed people currently between the ages of 15 and 24. This figure increases annually as more than 500 000 matriculants enter the workforce and tertiary institutions, only to be met with a lack of real opportunities. In comparison to other developing nations, South Africa’s economy is vibrant and advanced – and there is the potential to create opportunities for all who live in South Africa. With this in mind, the government offers incentives to businesses that facilitate learnership programmes. This is a significant opportunity for companies to upskill the unemployed and the employed, as well as their staff - and by funding training, companies can gain the means to improve their Broad-Based Black Economic Empowerment (B-BBEE) ranking. Overcoming obstacles through hands-on training What is the biggest obstacle for school leavers as they become job seekers? The fact that it’s almost impossible to get a job without experience, and it’s impossible to gain experience without a job. Learnerships are a unique solution to this age-old impasse because they bring together invaluable workplace experience and industry-relevant training in a manner that produces a versatile individual with the required knowledge and a level of practical experience to find and fill a position within that specific sector. A learnership is a structured work-based programme that runs over 12 to 24 months, during which the learner is exposed to theoretical and practical on-the-job training that relates to a specific occupation. Leveraging learnerships As such, learnerships are the pathway to a registered qualification on the National Qualifications Framework (NQF) that is managed by the relevant Sector Education and Training Authorities (SETAs). The benefit for the sponsor or funding company is that learnerships contribute towards the company's employment equity objectives, in addition to enhancing skills development internally. The government also offers tax incentives and cash grants in addition to B-BBEE rating incentives to companies for participating in learnerships. These incentives are even higher for companies that provide ongoing employment (absorption) once the learnerships are completed. Learnerships are awarded points on the B-BBEE Scorecard under both Employment Equity and Skills Development, and there is a South African Revenue Service (Sars) tax allowance if the learnership is registered with the Department of Labour and relevant SETA. Such an allowance is calculated on a case-by-case basis. For example, a disabled learnership could translate into a R120 000 tax allowance, and an abled-person learnership could translate into an R80 000 tax allowance over 12 months. Furthermore, skills levy contributions made this way can truly work for the benefit of the company, its people and the communities they touch. Benefits Given that learnerships are developed to be industry-specific, participants gain skill sets that are closely aligned with the requirements of businesses operating within those sectors. This develops candidates that have a good grasp of all the required work processes. Participants in learnership programmes gain knowledge and skills that are immediately applied in the workplace and lead to higher output standards and improved productivity, which is an immediate tangible benefit for the sponsor company. For participants in learnership programmes, their job prospects are greatly enhanced by having practical experience along with theoretical knowledge. Occupation-specific training that is backed by a nationally-recognised qualification provides job seekers with a boost of confidence, as well as a way to achieve a formal qualification when tertiary education might be inaccessible due to tuition costs and the like. Most learnerships provide an allowance/stipend for the duration of the programme, which assists significantly with costs such as transport and meals. The fixed-term employment contract for the duration of the learnership often results in permanent employment upon completion if the learner has performed well, which is the ultimate solution to addressing youth unemployment. Smart facilitation The right training partner will have all the necessary accreditations, means and mechanisms to run learnership programmes from end to end. Partnering with a training provider that specialises in youth development is a clear-cut way to ensure that the full benefits of learnerships are achieved – both for the company and the individuals intended to benefit from such programmes. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/careers/how-learnerships-can-address-youth-unemployment-and-boost-business-rankings-a65a5c9c-b633-4efb-a2a9-ca14ac97d40f

Cayla Murray | 24 July 2023 These will exacerbate existing gender disparities with virtually every sector setting higher targets for men. The Democratic Alliance (DA) in the Western Cape is deeply concerned about the proposed Employment Equity Act Draft Regulations, particularly its potential negative impact on women in the province. In response to a parliamentary question, the Provincial Department of Finance and Economic Opportunities outlined its concerns and put forth an alternative approach to address labour market disparities and inequality. The Draft Regulations aim to give effect to Section 15A of the Employment Equity Amendment Act, and if implemented, will exacerbate existing gender disparities in the workforce, with virtually every sector setting higher targets for men than women. Higher quotas for men across various sectors and occupational levels are troubling, because as labour force statistics show - women are more acutely affected by unemployment than men. According to the latest Quarterly Labour Force Survey, the unemployment rate amongst women is 4.7 percentage points higher than the male rate. Such gender-biased targets will further marginalise women and hinder their access to employment opportunities, deepening inequality and making the labour market more unfair. Instead, an evidence-based approach is essential to address the root causes of underrepresentation, rather than relying on ill-conceived numerical targets that could lead to unintended consequences. Education and skills development are key factors in addressing labour market imbalances. By focusing on high-quality education and aligning curriculum with marketable skills, the party aims to provide better opportunities for women and all citizens to participate fully in the labour force and contribute to economic growth. We will continue to fight for exactly that. That is why the Draft Regulations need to be withdrawn, and the Employment Equity Amendment Act needs to be repealed. There also needs to be a more comprehensive consultation process that includes all relevant stakeholders, especially women, to address inequality in the labour market. As the DA, our policies are designed to foster economic growth, attract investment, and create an enabling environment for business while promoting equitable representation of vulnerable population groups in the workforce, including women. The DA will on Wednesday 26 July be marching in protest in Cape Town against the ANC’s overly prescriptive Employment Equity regulations, and invites everyone who rejects the ANC government deciding where they can work, to join us and make their voices heard. Issued by Cayla Murray, DA Western Cape Spokesperson on Finance, Economic Opportunities and Tourism, 24 July 2023 ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.politicsweb.co.za/politics/ee-act-draft-regulations-will-adversely-impact-wom

Bongani Mdakane | 24th Jul 2023 The allegations drew the ire of UDM leader General Bantu Holomisa who lamented NJM’s caper was indication many white companies have been using black people as fronters for years. Political parties and the Black Business Council (BBC) have fired a broadside at an engineering company NJM for breaking Broad-Based Black Economic Empowerment (BBBEE) laws. This after NJM shareholders stated in their answering affidavit in the Joburg High Court that they fraudulently supplied a signed shareholders’ agreement to Eskom for the purpose of misleading and misrepresenting the company’s shareholding to win a tender at the state-owned utility a few years ago. They submitted the affidavit when a female shareholder, Baleseng Zinyana, who held 26% of the shares, which she paid for in cash, took the other directors to court after they refused to hand her the company’s accounting records to conduct an audit to determine the value of the business. The company’s former CEO Jack Madzivhandila also reported NJM to the BBBEE commission of the Department of Trade and Industry and said another female shareholder of the company, Vanessa Chungu, was fronting for the entity to enable it to be 51% black women owned. The allegations drew the ire of UDM leader Bantu Holomisa, who lamented NJM’s apparent caper as an indication that many white companies have been using black people as fronts for years. “BBBEE policy implementation allowed many white companies to exploit it for their gain. This policy was intended to build a black middle class using state funds. “Other white-owned companies saw loopholes and exploited black workers to enrich themselves. This is also how they looted PIC funds. Today some of the listed and unlisted companies are failing to service their PIC loans,” said Holomisa. ActionSA leader Herman Mashaba said it was totally wrong for white-owned companies to use black employees to front for their businesses. He said companies that are using black people to front were committing a crime. “I am dealing with the matter of 200 people who were fired by a white-owned company when they asked about their shares. The BBBEE Commission is tasked to tackle this matter, but it is doing nothing,” he said. Xiluva president Bongani Baloyi said established and non-established white-owned companies had been using black people as tokens to pose as company shareholders to be compliant with BBBEE, and questioned the effectiveness of the commission monitoring compliance with empowerment legislation. “Xiluva is of the view that this body has failed dismally to promote adherence. The idea of BBBEE to increase the economic participation of black people and redress the legacy of apartheid is a correct one, however, the current BBBEE has proved to be a failure,” said Baloyi. GOOD secretary general Brett Herron said companies, largely white-owned, have not transformed their shareholding or top management out of a commitment to redressing their historical unearned privilege but simply to be BBBEE compliant and to continue to win government tenders. “The corruption of this system of preferential procurement happens through this fronting and the culprits are those who own the companies. The law needs to introduce harsh penalties for those who have undermined BBBEE, and its proper intention in order to continue to win tenders.,” said Herron. DA spokesperson for trade, industry and competition Darren Bergman said his party did not believe that BBBEE in its current format had helped emerging black businesses nor existing business. “BBBEE has often led to exploitation and even more corruption with the net result of money going into the hands of people bucking the system and not people that should be redressed from an historic disadvantage.” IFP spokesperson Liezl van der Merwe said fronting did not only frustrate the achievement of the objectives envisaged by the BBBEE Act, but it was also a type of fraud. “The IFP is against any form of fronting, and in full support of the fines and penalties imposed through the BBBEE Act. Any company found to be in contravention of BBBEE regulations must face the full weight of the law. “The BBBEE Commission is woefully under-resourced, which in turn makes it difficult to identify and deal with issues such as fronting.” BBC CEO Kganki Matabane said: “Those people should be prosecuted as per the BBBEE Act. “Any person convicted of an offence in terms of the amendment act, will, for offences provided … be liable to a fine or imprisonment for a period not exceeding 10 years or to both a fine and such imprisonment.” In letter drafted by its lawyers, Knowles Husain Lindsay Attorners, NJM said it was not correct that its directors have been ordered to hand themsleves to the Hawks. They said compliance with the court order envisage a report being submitted to the Hawks as maybe necessary and did not require them to hand themselves over to the anti-corruption unit. However, Madzivhandila said, in his view, there was no difference. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/business/white-owned-firms-abuse-bbbee-to-enrich-themselves/