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TOUGH TALK: Trade and Industry Minister Rob Davies Photo: Trevor Samson

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The public will be given 60 days, starting on Tuesday, to comment on the proposed codes.

The revised Codes of Good Practice proposes stringent measures that require companies to be empowered.

The document will also make life easier for wholly black-owned businesses by cutting red tape and exempting them from carrying out a BEE verification process.

Trade and Industry Minister Rob Davies said it was unfair for wholly black-owned companies, especially small businesses, to spend huge sums of money to prove that they were black.

He said some companies had to pay R40 000 to be verified as black.

Davies said the 100% black-owned companies would automatically be classified as BEE Level-one contributors, while those that are 50% black-owned will be classified as Level two contributors.

Level one is currently the highest score for companies wanting to supply goods and services to government departments, while Level six is the lowest.

Though the revised scorecard has nine contributor levels, the scoring will differ significantly.

Companies that sit on Level four after scoring 68 points are to be downgraded to Level seven in future.

Empowerment analyst Ajay Lalu said the new codes would overhaul how companies conducted empowerment.

"If, currently, a company is a Level four contributor the proposed codes will lead to the company with the same number of points jumping down to being a Level seven contributor," he said.

He said the codes were to create an economy in which productive assets will be in black hands and to make sure that the government's enterprise development programme is aligned to the state's key national priorities," Lalu said.

Davies also talked tough on fronting, saying there would be a commissioner to deal with those involved.

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Thu May 23 01:32:13 SAST 2013 ::

Oct 3, 2012

cornelius

" The codes were to create an economy in which productive assets will be in black hands ..."

Wait a minute, are the affirmative action policies intended to ensure that all economic power and production is transferred to black people, or are they intended to level the playing field, so that eventtually the most competent will rise to the top ? Thsi is reverse dis=crimination and unconstitutional , surely.
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Oct 3, 2012

RobinH

So with this new system, if any individual or group decides to use someone to "front" a supposedly "black owned" company, they do not need to go through a verification process. This opens a door to widespread creation of fronts with nominal stooges listed as owners, but funded by any variety of arrangements.
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Oct 3, 2012

Papage

This is madness, the businesses are suffering because of this BEE thin, people must be selected on merit and performance is vital in any business. The reason why some businesses close doors is because their leaders are not up to scratch in running the affairs of the company, they are corrupt, no business ethics, they just know how to count money in their bank accout and have no knowledge of doing business. The BEE thing is taking this country's business down the drain.
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Oct 3, 2012

Coldcurry

there will be loopholes in defining what is black owned
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