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

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

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

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

5. 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

6. The Consultation Process
Must be:
Inclusive
Transparent
NOTES

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

8. 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

9. 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

10. 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

11. 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

12. Conclusion
National Agenda

13. Thank You
Siyabonga