I have been watching the government and its approach to broad-based BEE for a while and it is pleasing to note that it is making some headway in the conversion to BBBEE from the old narrow based system. There are two examples:
New Employment Equity codes of good practice (August 06)
The definition of black people is in keeping with November and December 2005 BBBEE codes of good practice. This may come as a bit of a drag for people submitting their next report. All people who aren't black by definition (birth or descent etc) are now to be classified as white.
State is selling property
Erwin was reported in the Business Report last week that parastatal land will be sold to BBBEE companies.
Erwin said that properties with a value of up to R5 million would only be open to bidders with a BEE status of level 4, through activities such as skills development, enterprise development and employment equity, or companies with at least 51 percent black ownership.
Bidders for properties valued at between R5 million and R30 million would need a level 4 BEE rating or at least 30 percent black ownership. Bids for properties worth between R30 million and R100 million would require a level 5 BEE status or at least 25 percent black ownership. Properties worth over R100 million would go to bidders with a level 6 BEE status or at least 20 percent black ownership.
This is a very positive move. I strongly endorse the practice of providing black people with the opportunity to purchase state land. Also it will only be provided to companies with a certain level of compliance. In other words, black-owned companies cannot only depend on the fact that they are black; they need a BBBEE score.
What I do find problematic is that black individuals bidding in their personal capacity would be regarded as BEE level 1. They had better have very strong anti-fronting mechanisms in place, because this one is open to abuse.
Business Day reported today that there would be road shows to market the land. A large amount of this land is expected to be bought by the housing department for its housing programme.
The same Business Day article also had something on scarce skills and JIPSA.
Deputy President Phumzile Mlambo-Ngcuka said the proposed list of scarce skills earmarked for immigration had been drawn up, and was with home affairs. When finalised, this year’s immigration quota list would be published.
Scarce skills identified by government included manufacturing and construction engineering professionals; natural and physical science professionals; medical engineers and technicians; call centre managers; and information and organisation professionals. Mlambo-Ngcuka said government would facilitate and streamline importation of skills by employers only as and when required.
We are making progress here.
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