Submission by the KZN BEE Alliance to Parliament on the Broad Based Black Economic Empowerment Bill, 2003

General Submission Specific Submissions Outline of the presentation General Submission Specific Submissions NOTES

General Submission Scope and Clarity Level of preparation, analysis and focus Consultation process NOTES

Scope and clarity Defined scope What is meant by BEE What is the intended programme of action? Demystification of BEE

Level of Preparation, Analysis & Focus Bill calls for amendments as it’s objectives are unclear Lack of programmatic objectives Bill has no teeth – it is seen as not effective NOTES

The Consultation Process Must be: Inclusive Transparent NOTES

Specific Submissions Recommendations on Industry Charters and Evaluation measures BEE Financing BEE – Advisory Council General Additions

A) Recommendations on Industry Charters & Evaluation measures By nature it is a voluntary agreement by the industry to implement BEE objectives, therefore it should be enforceable by legislation Punitive measures for non-compliance Incentives for compliance Targets & time frames for achievement General guidelines/framework for drawing up charters Alignment of charters i.t.o. spatial & demographic considerations & time frames Overarching charter – to be implemented in industries/sectors which don’t have charters NOTES

B) BEE Financing Mandates of Khula, NEF, IDC need to be amended to give effect to the BEE Bill Commercial terms of loan to be revised – be BEE enabling Regionalisation & decentralisation of financing structures Become fully fledged support centres Have full decision making power Not be mere marketing offices IDC to shed industrial mode – play role of financial services provider Risk capital / venture capital / angel financing – part of strategy Targeted investments & project financing – part of strategy R10 Billion (NEF) NOTES

C) Black Economic Empowerment Advisory Council Proper stakeholder consultation in drawing up it’s constitution Fair & equitable representation Take into account demographic, spatial & economic attributes Definition of a “black” person needs to be put into perspective KZN to be consulted in the finalisation of the process NOTES

Monitoring compliance with the provisions of the Act D) General Additions Statutory body – should be created with a mandate that will include, amongst other things: Monitoring compliance with the provisions of the Act Assess the impact and fulfilment of the objectives of the Act Investigative and punitive powers Issuing public reports regularly on sectors that comply or do not Procurement A critical mechanism to assist in BEE advancement Clear government delivery milestones Government must not abdicate its responsibility NOTES

Conclusion National Agenda

Thank You Siyabonga