Thank goodness for Keith Levenstein. Those in the industry know that he knows not what he speaks of, and so he is a blogger's dream. In fact I reckon Hlaudi has already issued him with the very first journalist's licence. His latest press release, which was published by Engineering News , has certainly got tongues wagging. As sensational as the heading may be, it's the only accurate piece of information that is contained in the whole article "Half the economy could become BEE noncompliant by May 2015". It's only half accurate – I would suggest that more than 90% of all companies operating in SA would be BEE non-compliant.
Let's move on to what ol' Keefie is attempting to get through to an unsuspecting public. Wait a minute, I need to go back a bit. Levenstop peddles advice and courses to those who don't know that he doesn't know what he's talking about. Obviously the more sensational the press release the more likely it is that companies are going to flock to him for "high quality advice" (with a strong emphasis on high).
Back to Levenstoy. "If the sector codes are not released in time, businesses will need to follow the amended codes released last October," he said.
Really, is that the truth? And if it is the truth then out of which source did it permeate? Even the DTI would question this version of the truth. It would be wrong for me as a concerned blogger and see-througher-of-Levenstick to leave it at that.
The issue that Levenstranded conveniently ignored is the status of transformation codes. We need to go back to the 2007 codes here (gazette number 29617), specifically statement 003, paragraph 4.3 "A sector code enjoys equal status with that of any other CODE". A Code is issued under section 9 of the BEE Act – see paragraph 3.6 of statement 003 "After considering public comment, the minister may gazette the transformation charter as a sector CODE under section 9 of the Act".
At this point Levenstrangle would be jumping up and down and saying "fuck him – he's wrong! Hasn't the idiot looked at paragraph 10.3 of the revised codes (36928), which says "….(t)he generic scorecard in Code series 000, Statement 000 issued on 9 February 2007, notwithstanding the REPEAL of that statement." ? I'll answer for the idiot. Yes he has read that section – he also knows that the specific paragraph is without legal substance and even if it was it says that Statement 000 is repealed, not Statement 003.
Returning to 36928. Paragraph 3.2.3 of Statement 000 has the following to say about sector codes "A measured entity in a sector in respect of which a sector code has been issued in terms of section 9 of the BBBEE Act as amended, may only be measured for compliance in accordance with that code." Even the new codes recognise that you need sectoral codes (Levenstrungout is an expert on fronting and sectoral codes you know). This is the juncture at which the DTI have got themselves firmly stuck up a pole. The sectoral codes issued under section 9 of the BEE Act are still in force and if they are not amended, replaced or repealed then they will not only not talk to the revised codes, but they'll still be applicable. (The word repeal has been added to the amended bill/act – I don't know what the legal status of the amended act is.). I've spoken to a few people at charter councils and they are galloping away at re-alignment. However this takes time. The Act says that any amendment must go out for comment for 60 days. Then the dti has to ignore consider the comments and then ignore them some more and then publish the final code. The sectoral codes are desperate to meet the dti's April 30 deadline so that all can be harmonious.
Back to Levenstigmatised's aversion that if the sectoral charters aren't aligned or repealed then you default to the revised BEE codes. This is such embarrassing bullshit, I'm sure the DTI are turning their heads in shame. In short, ignore this press release as rubbish and steer clear of poor BEE advice.
Comments