We did a very comprehensive course on BEE for organs of state. It's now available on Udemy. However there was a request that we couch the benefits of a public sector BEE implementation. The codes are clear about the applicability of the codes
3. APPLICATION OF THE CODES
3.1 The following Entities are measurable under the Codes:
3.1.1 all Organs of State and Public Entities;
What there gets really interesting is the type of scorecard an organ of state would need to use. It's understood that the Specialised entities' scorecard is the correct one for organs of state. But then again it might not be applicable to all organs of state. The specialised entities' scorecard is applicable to
1.1.4 Public entities and other Enterprises exclusively owned by organs of State;
With a public entity being defined in the BEE Act as
“public entity” means a public entity listed in Schedule 2 or 3 to the Public Finance Management Act, 1999 (Act No. 1 of 1999);
This excludes municipalities. Yet municipalities are an organ of state and are measurable under the codes
- Broad-Based Black Economic Empowerment Act 53 of 2003
“organ of state” means—
- a national or provincial department as defined in the Public Finance Management Act, 1999 (Act No. 1 of 1999);
- a municipality as contemplated in the Constitution;
- Parliament;
- a provincial legislature; and
- a constitutional institution listed in Schedule 1 to the Public Finance Management Act, 1999 (Act No. 1 of 1999);
What we have now (and Rob Davies must be held responsible for this - just another reason why he was so useless) is municipalities that are measurable under the codes yet they don't have a scorecard.
AND - do you know that the BEE Act imposes no sanction for public entity non-compliance. The rabbit on about fronting. It's likely that the only sanction is the the Auditor General will give municipalities a qualified audit if they don't comply with their BEE obligations.
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