Original publish date – Thu, 22 Oct 2009 12:10:24 +0000, MPUMULO MAPHOSA

It makes no sense from the way it sounds but it does exist, there are blacks that are literally regarded as non-blacks in Broad-Based Black Economic Empowerment. A black person as defined in the Codes of Good Practice includes Africans, Coloureds, Indians and Chinese. Such a person should be a South African citizen by birth or descent, by naturalization before the 27th April 1994 or if the person became a citizen after 27th April 1994, but who because of the Apartheid Policy in place at the time, would have been entitled to acquire citizenship by naturalization prior to that date.

This is particularly important to note when calculating points for Ownership, Management Control, Employment Equity, Skills Development, Enterprise Development and Socio-Economic Development. Therefore in calculating BEE points, a measured entity may not claim points for a black person who does not qualify under the definition given in the first paragraph.

To put this in perspective, a measured entity that donates food, blankets or provides health care support in some way to black people who are foreigners in a refugee camp can not claim such an initiative to score Socio-Economic Development points. It also goes to an enterprise that is 100% black foreign owned, it couldn’t be used as an Enterprise Development beneficiary from a BEE viewpoint and it applies to Employment Equity as well as Skills Development.

This is an important aspect of BEE to take note of. Not all black people are black.