After an inappropriately long period of keeping silent on the way forward with the Broad-based Black Economic Empowerment (B-BBEE) Sector Codes, answers was given on this issue by the Department of Trade and Industry (DTI). On 2 November 2015 via their departmental spokesman Sidwell Medupe, the DTI announced that Sector Charter Councils have until 15 November 2015 to submit aligned Sector Codes for approval to the Minister of Trade and industry, Dr. Rob Davies.
Below the statement from the Department of Trade and Industry:
“Sector Charter Councils have until 15 November 2015 to submit aligned Sector Codes for approval to Minister of Trade and Industry, Dr Rob Davies.
All existing Sector Codes that have not submitted application for approval to the Minister to be aligned with Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice will be repealed. Once Sector Codes are repealed, entities operating in the affected sectors will use the Amended B-BBEE Codes of Good Practice for measurement.The background to this action by Minister Davies is that on 15 May 2015, all the existing Sector Codes which were not aligned to the Amended B-BBEE Codes of Good Practice were given further extension to complete the alignment process by 30 October 2015. The extension was given through a notice, Government Gazette Number 38799, which further stated that a consideration shall be made to repealing those Sector Codes that are not aligned and ready for gazetting by 30 October 2015.”
All existing Sector Codes that have not submitted an application for approval to the Minister to be aligned with B-BBEE Codes of Good Practice will be repealed. Once Sector Codes are repealed, entities operating in these affected sectors will have to use the Amended B-BBEE Codes of Good Practice for measurement.
This means that companies falling within a sector charter, whose application is not submitted by 15 November 2015, find themselves within the financial period after 1 May 2015 and their next scorecard will be based on the Amended Codes of Good Practice.
Once an aligned Sector Code has been submitted to the DTI, this draft code has to be published for 60 days public comment. Once comments are taken into account the final approval takes place. The Minister can gazette the Sector Code in terms of Section 9(1) of the act. This period can take anything between 1 month and 4 months or even more, although unlikely in this instance.
On 11 November 2015 the department published the following media statement regarding the Draft Amended Forest Sector Code:
|“The Minister of Trade and Industry, Dr Rob Davies gazetted the Draft Sector Code in terms of Section 9(5) of the Broad-Based Black Economic Empowerment Amendment Act (B-BBEE Act 53 of 2003) as amended by the B-BBEE Act 46 of 2013. Members of the public and interested parties have until 6 January 2016 to comment on the Draft Amended Forest Sector Code.”
ABOUT THE AUTHOR
Esti Joubert has been a SEESA BEE Legal Advisor since June 2015. She obtained her LLB degree in 2011 and her LLM in 2014.