No significant changes in transformation, says BBBEE Commission
significant changes in the levels of transformation during 2018, with black ownership reflecting a decline to 25.2%, from 27% in 2017, and management control still sitting at 38% for blacks, the Broad-Based Black Economic Empowerment (BBBEE) Commission said in a recent statement.
“[This] worrying trend of noncompliance is . . . undermining the objectives of the BBBEE Act,” the commission remarked in its statement.
The commission’s yearly report on the national status and trends of BBBEE also showed that only 43% of JSE-listed entities and 10% of the organs of State had submitted yearly compliance reports in 2018, with the majority of these entities failing to comply.
According to Section 13G of the BBBEE Act, it is compulsory for all JSE-listed entities, organs of State, public entities and sector education and training authorities to submit compliance reports on BBBEE to the commission.
Other results in the report showed that, while black ownership was now at 25.2%, black women ownership stood at only 10.1%.
However, JSE-listed entities achieving at least BBBEE contribution Level 4 increased by 10.9% in 2018, compared with 2017. The analysis indicates that 50.9% of entities have now achieved Level 4 and higher, while 44.4% of entities fall in the Level 5 to noncompliant-status range.
Fifty-nine per cent of organs of State that reported on their BBBEE status were rated at between Level 2 and Level 7, while 41% were rated between Level 8 and noncompliant.
While the low level of reporting and the slow pace of improvement in BBBEE were of concern to the commission, it welcomed that BBBEE compliance was now a part of the audit scope of the auditor-general and also that yearly BBBEE reporting was a listing requirement on the JSE.
Therefore, with these interventions and the enforcement action of the commission, reporting and the extent of BBBEE implementation were expected to improve, the commission said in a statement.
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