B-BBEE Companies Must Comply or Face Action: Trade and Industry Minister
The Minister of Trade and Industry (the dti) Rob Davies has said that the Broad-Based Economic Empowerment (B-BBEE) Commission should take action against companies that are found not complying with the B-BBEE requirements for transformation.
To date, the Commission has only received 27 reports from the Johannesburg Stock Exchange (JSE) listed companies, which Davies says is not giving a holistic view of transformation in South Africa.
He said that the Commission needs to also deal with verification agencies that are found to be promoting misrepresentation and fronting by issuing B-BBEE certificates which do not give a true reflection of the transformation status in companies.
“We need to know that we can rely on the scorecards, that they are a true reflection of where we are in terms of transformation.”
Acting Commissioner for the B-BBEE Commission, Zodwa Ntuli, said the Commission took the role of B-BBEE legislation seriously in relation to breaking into the levels of concentration by facilitating new entrants.
She said that the Commission had already initiated investigations into cases of fronting and targeting the verification industry.
Ntuli also announced that the Commission had developed a B-BEE certification web portal which would be linked to the database of the National Treasury.
She said the portal, which came into effect on 1 April, as an effort to reduce fraudulent B-BBEE certificates, will allow government and State-Owned Enterprises to go on to the B-BBEE website to verify the legitimacy of B-BBEE certificates from suppliers.