Loading

Richards Bay Industrial Development Zone Scores at the B-BBEE Annual Commission’s Awards...

22 MARCH 2018

Richards Bay Industrial Development Zone Scores at the B-BBEE Annual Commission’s Awards...

RBIDZ scored big when it scooped a Recognition Award at the annual B-BBEE Commission’s Awards held recently at the Johannesburg Gallagher Estates. The awards recognised the good effort by entities on various B-BBEE aspects.

The Annual Awards was hosted by the B-BBEE Commission under the theme ‘Improving State Procurement for Real Empowerment’. The theme is aimed at finding effective ways for the state to make B-BBEE a reality for previously marginalised groups and further achieve the objectives of the B-BBBEE Act 46 of 2013.

The RBIDZ was recognised for being the 1st public entity in the country to report on their B-BBEE compliance in the audited financial statements and annual reports when Section 10 was amended to make it obligatory and a requirement under Section 13G of the B-BBEE Act for all organs of state and public entities to report on their B-BBEE compliance.

Section 10 of the Act was intentionally amended to ensure that the B-BBEE Commission is able to monitor the state of economic transformation, supervise adherence to the B-BBEE Act in the interest of the public, and promote good governance and accountability within various institutions.
Attending the Awards ceremony was Minister for Department of Trade and Industry, Dr Rob Davies who emphasised in his address, that all state-owned entities and government departments must implement the Broad-Based Black Economic Empowerment (B-BBEE) Act.  “It is not an option to implement, but a MUST and no one is exempted to implement this Act”.
Davies further stated that, “to ensure that B-BBEE is a reality for black people, Section 10 of the B-BBEE Act requires all government and state entities to integrate B-BBEE requirements in awarding contracts, licenses, grants, incentives and concessions to entities that are B-BBEE compliant”.
Minister Davies informed the conference that the B-BBEE Commission identified a trend where manufacturers/entities resist transformation by creating intermediaries wherein they put in place exclusive dealing agreements with these newly created 51% black owned entities, through which they market and supply their products. The opportunistic intermediary basically becomes a front for the manufacturer in question, in that you buy from the very same untransformed manufacturer but through an intermediary that merely gets a commission or operates as a shelf which keeps limited funds in its account to keep afloat.

Minister Davies said he received an update from the B-BBEE Commission that out of the 195 compliance reports received by the B-BBEE Commission, only eight are from state entities, and government departments and none from Sector Education and Training Authorities (SETAs). He described this as a gross high level of non-compliance that undermines transformation, adding that it was disturbing.

Furthermore, Minister Davies said these individuals close opportunities for real black industrialists to be involved in the value-chain, and perpetuate increased barriers through these exclusive arrangements.  He emphasised that this sophisticated way of fronting must come to an end.

The Chairperson of the Portfolio Committee on Trade and Industry, Ms Joan Fubbs who also addressed the conference stated that fronting was fraud and will not be tolerated as it undermines transformation. They both mentioned that in order to enjoy a better South Africa with socio-economic freedom, everyone needed to embrace and appreciate the importance of the B-BBEE objectives and accelerate proper implementation of the B-BBEE Policy.

Ms Fubbs urged the business fraternity to have the desire to be part of the real economic transformation by implementing the B-BBEE objectives.

The conference was attended by accounting officers, procurement officers and chief operating officers from all spheres of government, state-owned entities and the private sector who exchanged views on what is expected of them in practice in as far as the implementation of the B-BBEE Act is concerned.

For the RBIDZ which is a state owned company, “It is gratifying to be acknowledged by such high authority of the state as the first public entity in the country for adherence to the amended regulations and ensuring that we fully partake and commit to the implementation of B-BBEE guidelines with the aim to integrate and empower business practises and deliver on a positive impact,” CEO Pumi Motsoahae quipped.

Receiving the Award on behalf of the RBIDZ was Adv. Keith Harvey who has contributed immensely on ensuring that the company satisfies all regulatory requirements as stipulated by the Act.