Neren Rau, the CEO of the South African Chamber of Commerce and Industry, says empowerment was not supposed to have been legislated beyond the voluntary codes of good practice, but this has rapidly gained momentum to the point where it is now.
He also says foreign investors do not have to abide by the regulations, and that the "punishment" comes where companies "lie and front". But the "codes are structured so strongly that not to comply is going to be very difficult".
However, Mr Rau also says the government struggles with enforcement of legislation across the board. So, despite the strong enforcement mechanisms in the new law, including from verification agencies — and possible lengthy jail terms for those deemed noncompliant — empowerment will be no exception. "They know they can’t police this effectively."
via www.bdlive.co.za
If I may throw my opinion into the mix this is a useless and toothless piece of legislation. I am sure they will start with a little vigour and attempt to prosecute certain companies for fronting. The only successes they'll get will be smaller companies who can't afford a decent legal team. The bigger companies will throw a significantly more competent legal team at the NPA, DTI or whoever chooses to prosecute and embarress them completely. Not that they mind that.
First we have to have a BEE Commissioner, as Thalia Holmes writes in the MG, this is a long way off (be aware that she quotes Dilly in this article who once again demonstrates that he is devoid of a clue. He really should not be talking about any business matters ever).
(A)ccording to Nomonde Mesatywa, the chief director for BEE at the trade and industry department, this reality is still a distant one.
"As the DTI, we are still in the process of setting up the BEE commission itself," she said. "No appointment has been made as yet. We are hopeful this will be done before the end of the 2014/15 financial year."
If Nomonde says she is hopeful then you can add another four years onto this timeline.
I have a plan for all South African owned businesses turning over less than R50m. See the next post.
(And sorry I didn't include you in Dramatis Personae in my last post Dilly. For those who want to know, Dilly is Andile Tlhoaele).
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