Broad-based BEE entrenching itself in business
THERE is significant progress on compliance to Broad-Based Black Economic Empowerment, a survey by audit firm KPMG revealed yesterday.
FOCUS: KPMG CEO Moses Kgosana Photo: MABUTI KALIThe survey was conducted last year among 2000 companies, 94% of which were large entities with a turnover of R35-million and above.
The study measured progress made by companies in complying with BBBEE between 2006 (when the survey began) and 2011.
While there was progress overall, companies were still struggling to implement skills development, which is key to economic growth.
Associate director at KPMG Sam Pickering-Dunn said there was a shift on BBBEE.
"There is a strong focus on the longer-term elements like skills development, employment equity and ownership.
"From our observation, the reason why skills development has not picked so well is that it is very hard to implement.
"A lot of companies are not aware of the various procedures that they need to put in place to record skills development properly," she said.
The survey looked at how the companies had improved or weakened in the seven score elements of BBBEE: ownership, preferential procurement, employment equity, skills development, enterprise development, management control and socio-economic development.
These elements are used by BBBEE rating agencies in scoring how companies are complying with BEE.
KPMG CEO Moses Kgosana said BEE was a business imperative.
"It is no longer just for government tenders, even private sector companies want to do business with people who are BEEcompliant.
"These two talk to the development of enterprise development - preferential procurement and enterprise development because as you do that you will see many of the BEE," said Kgosana.
"But there are two elements that are lagging behind, employment equity and skills development.
"If we do not focus on these two things in the next few years, we might fail to celebrate our achievement and kiss BEE goodbye," Kgosana added.
Companies also showed improvement on preferential procurement as their average moved from level six to 15.99. The target level in this category is 20.
Director of restructuring at KPMG Warren Watkins said BEE was being discussed at the highest levels in business.
"The CEO, 30% of the time is responsible for the BEE agenda. In the previous survey it was 19%," he said.
At least 50% of the respondents said their board was responsible for BEE.
KhosanXX
It is a fact that blacks are still too dependent on whites -the saddest part of all is that they are not using their dependence on whites to liberate and empower themselves but to enjoy the scarce privileges that economic freedom offers them e.g. nice car, house, full food cupboard and no brains to relieve or commitment to relieve themselves from their total dependence of the white man - leading to accusations of fronting.This is the saddest part of our liberation struggle - after, Steve Biko warned us that: "Black man you are on your own." To this day we have never heeded this call. Congratulations to those black companies to continue to showcase their independence of white interference - despite being aware of the vessitudes of the business world.
We need schools, forums and support structures that can facilitate black independence thinking.
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TAUMATOTELA
WHAT DO YOU SUGGEST KHOSANAXXX, OLD CAR? FOUR ROOM @ LOXION AND MORE & MORE HUSTLING? DON'T YOU THINK BLACK PEOPLE WITH THAT KIND OF MIND SET ARE MORE LIKELY NOT TO GET BEE, I THINK BEFORE A BLACK MAN IS EMPOWERED, DUE DILIGENCE IS DONE ON THIS INDIVIDUAL, IF SIGNS OF WHITE MAN INDEPENDENCE; WISDOM; LOVE FOR OWN PEOPLE, ETC.. CAN BE PICKED UP, THEN OBVIOUSLY DISQUALIFICATION FOLLOWS.Report Abuse