Transcript Charter - ipac

BROAD BASED BLACK
ECONOMIC
EMPOWERMENT ACT 53 of
2003
Assented to 1 January 2004
Commencement – to be
proclaimed
1
Aim of Act
 To creating a legislative framework for
promoting black economic empowerment
 To empower minister to issue code of
good practice and publish charters
 To establish BEE Advisory Council
Preamble
 Whereas:
 Under apartheid, race was used to control
access to SA’s resources and access to skills
 SA economy still excludes majority from
assets and advanced skills
 SA economy performs below its potential
because of low level of income earned and
generated by this majority
 Unless steps taken, SA’s stability and
prosperity may be undermined for all
The legislation is enacted to
address:
 The constitutional right to equality
 Increase broad based participation of black
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people in the economy
Promote a higher growth rate
Increase employment
promote equitable income distribution; AND
To establish a national policy on BBBEE to
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Promote the economic unity of the nation
Protect the common market
Promote equal opportunity
Promote equal access to government services
Definitions
 Black people– African Coloured and Indian
 Broad based black economic empowerment –means
empowerment of all black people – including – women,
youth ,disabled, rural people, by way of:
 Increasing black people in managing, owning and controlling
enterprises and assets
 Facilitating ownership and management by communities,
workers, co-operatives etc
 h.r.and skills development
 Achieving equitable representation in all occupational categories
 Preferential procurement
 Investment into black enterprises
cont
 Organ of state – national/provincial
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department
Municipality
Parliament
Provincial legislature
etc
Objectives of the act
 To facilitate bbbee by:
 Promoting economic transformation enabling
meaningful participation of blacks in the
economy
 Changing racial composition of ownership and
management and skilled occupations of
existing and new enterprises
 Increasing community, worker ownership –
and their access to economic activities,
infrastructure and skills training
Objectives of the act cont
 Increasing black women ownership and
management -and their access to economic
activities, infrastructure and skills training
 Promoting investment programmes that lead
to blacks fully participating in the economy
 Empowering rural an local communities by
enabling access to economic activities land
ownership and skills
 Promoting access to finance for black
economic empowerment
interpretation
 Interpret so as to give effect to these
objectives
 So as to comply with the Constitution
BEE ADVISORY COUNCIL
 MUST:
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Advise gov’t on black economic empowerment
Review progress
Advise on codes of good practice
If requested advise on draft charters
Facilitate partnerships between state and the private sector
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The president = chairperson
Minister of Trade and Industry
3 cabinet ministers
Between 10 and 15 members representing:
 Unions
 Business
 Community organisations
 academics
 COMPOSITION INCLUDES:
CODES OF GOOD PRACTICE
 Minister may issue codes that may include:
 Interpretation of bee and definition of different categories of black
empowerment entities
 Preferential procurement qualification criteria
 Indicators to measure bee and the weighting to be attached to
these indicators
 Guidelines on drafting of charters
 Codes may specify
 Targets consistent with the objectives of the act
 Period within which to achieve targets
 To promote S9(2) of the Constitution – and to promote
equality of woman, code targets can distinguish between
black men and black women
Code cont
 Code Status – state and public entities to
apply if and where possible, in:
 Considering issuing of licences, concessions,
or other authorisations
 Implementing preferential procurement policy
 Determining qualification criteria for sale of
state owned enterprises
 Criteria for partnerships with the private sector
Strategy for BEE
 Minister must issue a BEE strategy which
must:
 Provide an integrated approach to BEE by
state, public entities, the private sector,
NGO’s, local communities
 Develop a plan for financing BEE
 Provide a system for preparation of BEE
plans and to report on the plans
Transformation Charters
 Minister will publish and promote a charter
if satisfied it has:
 Been developed by major stakeholders in the
sector
 Advances the Act
Support an Services of Council
 The DTI to support the Council with funds
approved by Parliament