Another of the proposed changes would entail the revision of existing BEE codes to place more emphasis on support for black entrepreneurs through enterprise development and procurement. This is an attempt to correct an overemphasis on the equity transfer component of the original legislation, which resulted in the enrichment of a handful of high-profile, politically connected and already powerful people and little tangible benefit to ordinary black South Africans.
Yet by insisting that the new law trump all existing BEE legislation, including sector-specific codes negotiated with much blood, sweat and tears over several years, the government risks generating a new and potentially calamitous unintended consequence to which the existing ones would pale by comparison.
Numerous empowerment deals worth billions of rand have been completed in terms of the existing codes, whose minimum equity requirements vary according to the agreements that were reached. Moving the goalposts now might threaten some companies’ ability to bid for state contracts, or even nullify new-order mining rights.
The point is that any attempt to plug the acknowledged holes in SA’s BEE policies will have to be approached with extreme caution lest it end up doing more economic harm than social good.
Too true. We need to be so scared of this bill and the new codes. It's already a disaster and we can't sit by and watch this unravel at our expense. Rob is being VERY badly advised (something his principal is also a victim of), and the solution can only be a court challenge. Let's prevent this from coming about by opposing this bill actively.
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