B-BBEE Amendment Bill

April 17, 2012

For those of you who wanted to know how long B-BBEE is going to be around, here is an interesting read.

Article by Business Live:

“B-BBEE Amendment Bill to be tabled in May: Davies

The Broad-Based Black Economic Empowerment (B-BBEE) Amendment Bill will be tabled in May and should become an Act by the end of this year, Minister of Trade and Industry Rob Davies told a media briefing on Tuesday after a meeting of the Presidential B-BBEE Advisory Council.
“We expect to table the Bill next month and after that it depends on the legislative process, but we hope that it will become law by the end of this year,” he said.
The amendments were published for public comment in December and the closing date was February 9.
“The overwhelming response in terms of public comment has been positive, and we have only made some small tweaks to the proposals,” Davies added.
The new bill will establish a B-BBEE Commission, which will monitor issues pertaining to B-BBEE. It will also make fronting a statutory offence.
“You can go to jail for fronting currently as that is a fraudulent transaction, but the amendments will provide a definition of fronting that will make it easier to prosecute. The amendment will also state that where there is conflict between various laws, then the B-BBEE Act is the superior law,” he noted.
The proposals stated that fronting related to a transaction, arrangement or conduct that directly, or indirectly, undermined or frustrated the achievements of the aims of the B-BBEE Act or the implementation of any of the provisions of the Act.
“The aim of making fronting a statutory offence is to make sure that black entrepreneurs are not just passive shareholders, but active decision makers. The purpose of black empowerment is not to foist it down the throats of businesses, but rather to broaden participation in the SA economy,” H. Preuss (03/04/2012). Business Live.

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