The Department of Trade and Industry backtracked on a “clarification notice” on BEE that has the business sector up in arms.
It recently announced that broad-based empowerment and employee ownership schemes will start counting less than individual share ownership, changes which could cause empowerment programs meant to benefit many end up going to a few black industrialists.
The DTI now says the provision won’t work retrospectively and that B-BBEE deals clinched before 1 May 2015 remain unaffected.
The Department will appoint a task team to investigate the best balance between active and passive ownership and will report to the Minister of Trade and Industry within 30 days.
Is the issue of broad-based empowerment still an issue? We interviewed Tony Balshaw, Senior Partner in charge of BEE at Mazars.
Scroll down to listen to the audio for more detail.
They don’t realise the huge impact of their agendas on South Africa. There is a lot of confusion. I hope the Minister will enact amendments to this after 30 days.— Tony Balshaw, Partner in charge of BEE at Mazars