The Broad-Based Black Economic Commission (B-BBEE) will host its Annual Conference at Emperors Palace, Kempton Park, Gauteng tomorrow, 14 March 2019 from 09:00.
Delegates from government departments, state-owned entities, the private sector and industry, workers and civil society associations will attend the conference. The conference will be focusing on black-ownership as a priority element, with a specific emphasis on major B-BBEE transactions already registered with the B-BBEE Commission from June 2017.
The Minister of Trade and Industry, Dr Rob Davies explains that the B-BBEE Commission will soon release its First Report on Major B-BBEE Transactions which will highlight amongst others, the extent of black ownership acquired, the method of financing in these deals, the extent to which they include the working class and whether or not real ownership is likely to rest in the hands of black people.
The conference will also serve as a platform to report back on the enforcement work of the B-BBEE Commission through case studies of finalised cases on the practice of fronting and the misrepresentation of B-BBEE status. Case studies of matters referred for criminal proceedings and those resolved through dispute resolution will also form part of the conference reportage, says Davies.
Davies adds that based on major B-BBEE transactions and investigations conducted to date, it was evident that a number of black ownership structures were not B-BBEE compliant and that fronting schemes remain a challenge that must be confronted.
This negatively impacts on the achievements of the objectives of the B-BBEE Act. Recent observations have also revealed that there are more Trusts and Broad-Based Schemes with no tangible black ownership that are used as vehicles for the acquisition of black ownership in transactions assessed. Not only is it important to say such schemes are unacceptable but we should take decisive action when these are not remedied by the entities following advice given, he says.
Source: Department of Trade and Industry