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

2. 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

3. BACKGROUND
PART 1

4. 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
Transport Sector BEE Charter

5. 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

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

7. 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

8. 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

9. REVIEW PERIOD
PART 2

10. 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

11. B-BBEE BASELINE STUDY
PART 3

12. 2013 & 2007 COMPARISONS
Comparison of Levels with 2007 Baseline Study (Source: DTI)

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

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

15. 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)

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

17. IMPLEMENTATION, MONITORING, EVALUATION & PROGRESS
PART 4

18. 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

19. 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)

20. 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)

21. WAY FORWARD
PART 4

22. 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

23. 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

24. THANK YOU!