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Submission by the KZN BEE Alliance to Parliament

This submission to Parliament highlights the need for clarity, preparation, and effectiveness in the Broad-Based Black Economic Empowerment (BEE) Bill. It also provides recommendations on industry charters, BEE financing, the BEE Advisory Council, and general additions to improve the BEE framework.

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Submission by the KZN BEE Alliance to Parliament

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  1. Submission by the KZN BEE Alliance to Parliament on the Broad Based Black Economic Empowerment Bill, 2003

  2. Outline of the presentation • General Submission • Specific Submissions

  3. General Submission • Scope and Clarity • Level of preparation, analysis and focus • Consultation process

  4. Scope and clarity • Defined scope • What is meant by BEE • What is the intended programme of action? • Demystification of BEE

  5. Level of Preparation, Analysis & Focus • Bill calls for amendments as it’s objectives are unclear • Lack of programmatic objectives • Bill has no teeth – it is seen as not effective

  6. The Consultation Process • Must be: • Inclusive • Transparent

  7. Specific Submissions • Recommendations on Industry Charters and Evaluation measures • BEE Financing • BEE – Advisory Council • General Additions

  8. A) Recommendations on Industry Charters & Evaluation measures • By nature it is a voluntary agreement by the industry to implement BEE objectives, therefore it should be enforceable by legislation • Punitive measures for non-compliance • Incentives for compliance • Targets & time frames for achievement • General guidelines/framework for drawing up charters • Alignment of charters i.t.o. spatial & demographic considerations & time frames • Overarching charter – to be implemented in industries/sectors which don’t have charters

  9. B) BEE Financing • Mandates of Khula, NEF, IDC need to be amended to give effect to the BEE Bill • Commercial terms of loan to be revised – be BEE enabling • Regionalisation & decentralisation of financing structures • Become fully fledged support centres • Have full decision making power • Not be mere marketing offices • IDC to shed industrial mode – play role of financial services provider • Risk capital / venture capital / angel financing – part of strategy • Targeted investments & project financing – part of strategy • R10 Billion (NEF)

  10. C) Black Economic Empowerment Advisory Council • Proper stakeholder consultation in drawing up it’s constitution • Fair & equitable representation • Take into account demographic, spatial & economic attributes • Definition of a “black” person needs to be put into perspective • KZN to be consulted in the finalisation of the process

  11. D) General Additions • Statutory body – should be created with a mandate that will include, amongst other things: • Monitoring compliance with the provisions of the Act • Assess the impact and fulfilment of the objectives of the Act • Investigative and punitive powers • Issuing public reports regularly on sectors that comply or do not • Procurement • A critical mechanism to assist in BEE advancement • Clear government delivery milestones • Government must not abdicate its responsibility

  12. Conclusion • National Agenda

  13. Thank You Siyabonga

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