The committees (Parliament’s Standing Committee on Finance and the Portfolio on Trade and Industry) recommend that the industry be compelled to provide the necessary information about their transformation and BEE compliance to the FSC Council, the newly-established BEE Commission and any other relevant state structure.
In cracking the whip, the committee has also recommended sanctions be imposed for non-compliance to BEE under the Financial Sector Charter and the BEE Generic Codes. Transformation and BEE compliance is a choice for companies and widely viewed as the right thing to do and there are no punitive measures for non-compliance.
The BEE Commission is expected to develop a system of fines for non-compliance and present a policy on this by June 2018.
As per Moneyweb
As if doing business in this country wasn't hard enough. I find this type of article just ridiculous and disturbing. This is not to detract from the journalist (Ray Mahlaka). Ray is a great journalist, one whose articles carry a lot of weight. If I'm reading Ray correctly, the completely incompetent dti (read anc government) is proposing a fines' system for non-compliance of the BEE codes, specifically the FSC. It's too early to know what "non-compliance" is. But I think we can guess. This is not a bunch of legislators who understand much about an economy, non-compliance will in all likelihood be not meeting subminima under the codes. I can't imagine that they are so devoid of grounding that they may impose fines for not meeting a certain level - but then again I can.
I hope the dear reader can see what's going on here. This committee is going to find a way to make sure that the BEE codes are now mandatory. Id est
In cracking the whip, the committee has also recommended sanctions be imposed for non-compliance to BEE under the Financial Sector Charter and the BEE Generic Codes. Transformation and BEE compliance is a choice for companies and widely viewed as the right thing to do and there are no punitive measures for non-compliance.
The BEE Commission is expected to develop a system of fines for non-compliance and present a policy on this by June 2018.
Once again the awesome awdoz is involved. Not having ever met her, and I have my doubts as to whether I ever will, I can only speculate that this is what she wants. And I am willing to bet my prize piece of South African suspended soil that she is going to push it through and South African corporates will do nothing about it.
There are constitutional issues at play here. A rudimentary reading of the codes shows that the following are subject to these unworkable wonders of contemporary lawmaking
The following Entities are measurable under the Codes:
3.1.1 all Organs of State and Public Entities;
3.1.2 all Measured Entities that undertake any economic activity with all Organs of State and Public Entities;
3.1.3 any other Measured Entity that undertakes any economic activity, whether direct or indirect, with any other Measured Entity that is subject to measurement under paragraph 3.1.1 to 3.1.2 and which is seeking to establish its own B-BBEE compliance.
This is where the "right thing to do" is applicable. It's only 3.1.1 entities that are subject to the drivel that is the codes, not that they pay too much attention to it - the guptas get the business with the shittiest BEE performance. What awdoz is going to do, mkhwebane-style, is make the codes mandatory
She can't - but if we don't stop it she will. She might not get away with it legally, she might just post ugly posts on her website about how corporates are going to be investigated and in that way get it through.
Corporate South Africa, I know you won't say I didn't warn you. But I'm warning you, this is coming and once it does you'll look like a bunch of anti-transformation wmc patsies. And then it will be too late.
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