Presentation to Portfolio Committee on Transport 25 February 2014 INTEGRATED TRANSPORT SECTOR B-BBEE Charter

OUTLINE OF PRESENTATION PART 1: BACKGROUND PART 2: REVIEW PERIOND PART 3: B-BBEE BASELINE STUDY PART 4: IMPLEMENTATION, MONITORING & EVALUATION PART 5: WAY FORWARD

BACKGROUND PART 1

BEE LEGISLATIVE FRAMEWORK 1999 BEE Commission Report 2000 PPPFA 2003 B-BBEE Strategy B-BBEE Act 2007 Codes Gazzetting 20144 New Codes & Amended BEE Act Government B-BBEE Legislative Framework Transition Transport B-BBEE Charter Development Process 2010-2014 Transport Sector BEE Charter

CHARTER GAZETTING Launched the charter: October 2008 in Kliptown Soweto by then Minister Jeff Radebe In December 2008 gazetted under section 12 of BEE Act of 2003 Integrated Transport Sector B-BBEE Code gazetted August 2009 under section 9 (1) of BEE Act of 2003 Foreign-Owned Airlines not gazetted under section 9 (1) still section 12 of the BEE Act (2003) 5

APPROVED SECTOR CODES Gazetted in terms of section 9 (1): Tourism Construction Forestry Integrated Transport Chartered Accountancy Property ICT-Information & Communication Technology (ICT)

SCOPE OF APPLICATION Transport Sector Public Transport: Rail Taxi Bus (Commuters & Coaches) Public Sector Commercial Business: Aviation (Domestic & Foreign-owned airlines) Maritime Road Freight Forwarding & Clearing

B-BBEE SCORECARD ELEMENTS WEIGHTINGS Ownership 20-points Management Control 10-points Employment Equity 15-points Skills Development Preferential Procurement Enterprise Development Socio-Economic Development 5-points

REVIEW PERIOD PART 2

REVIEW PERIOD 10 Years – Codes of Good Practice 3 Years - Public Sector 5 Years – Transport Sector B-BBEE Codes 10 Years – Codes of Good Practice

B-BBEE BASELINE STUDY PART 3

2013 & 2007 COMPARISONS Comparison of Levels with 2007 Baseline Study (Source: DTI)

SECTORAL B-BBEE LEVELS Aggregate B-BBEE Levels Sector Comparison (Source: DTI)

NATIONAL B-BBEE LEVELS National B-BBEE Average of Categories (Source: DTI)

DEPARMENT OF TRANSPORT DOT VERIFICATION DOT B-BBEE verification results (Source: DOT verification report)   DEPARMENT OF TRANSPORT LIMP NC NATIONAL MP KZN EC Elements Points Scores Score AVERAGE SCORE TARGET Management Control 10 6.21 5.45 8.54 6.95 7.05 8.63 7.14 70% Employment Equity 18 17.73 15.4 16.00 16.7 13.9 0.00 13.31 Skills Development 25 13.14 4.34 2.91 3% Payroll Preferential procurement 32 0.02 0.61 24.6 31.0 32.0 14.75 60% (P. Spend) Enterprise Development 15 1% (D. spend)

DOT VERIFICATION DOT B-BBEE verification results (Source: DOT verification report)

IMPLEMENTATION, MONITORING, EVALUATION & PROGRESS PART 4

FOUR PILLARS OF I, M & E FRAMEWORK Education, Communication & Awareness Set up BEE Transport Sector BEE Council BEE Unit to provide support services Ensure implementation Of BEE targets

EDUCATION, COMMUNICATION & AWARENESS PROGRAM Undertook Eight Provincial Road shows conducted - to educate, inform & market the Charter. Also, communicated opportunities and challenges of the transport sector Conducted workshops to Transport SOCs (Boards & EXCOs) and Provincial officials Arranged workshops with Verification Agencies (Coastal and Inland Provinces)

OTHER INTERVENTIONS Introduced B-BBEE Permits/Licensing Mechanism (e.g. aviation sector) to implement BEE Conducted DOT verification Ensure BEE verification certificates are produced by companies dealing with government Improve payment turnaround time Deal with unfair BEE practices with the help of DTI Monitor implementation of BEE by DOT & State-Owned Companies (Quarterly reporting)

WAY FORWARD PART 4

LOOKING FORWARD Finalise B-BBEE Charter Council – May 2014 Complete B-BBEE Survey (Audit) – End of 2014/15 Align B-BBEE charter with new DTI Codes & amended BEE Act - October 2014

LOOKING FORWARD Report progress & challenges to the DTI BEE commission – bi-annually Monitor implementation of B-BBEE by DOT & SOCs – Continuously For consideration: DGs, DDGs and other SMS members to put B-BBEE as part of their performance agreements including CEOs of SOEs

THANK YOU!