1. Thabo Masombuka CEO – CSCC

2. TO BE COVERED IN THIS PRESENTATION 1.Why the Construction Sector Charter 2.The priorities and objectives of the Construction Sector Charter 3.Broad Outline of CSCC Members of EXCO 4. Finalization of the BASELINE STUDY for purposes of annual reporting 5. Other matters facing the Industry

3. WHY CONSTRUCTION CHARTER ECONOMIC TRANSFORMATION - Non – racial economy Skills & ownership BEE COMMISSION – BBBEE STRATEGY BBBEE ACT & CODES OF GOOD PRACTICE SECTOR SPECIFIC INTERVENTIONs CONSTRUCTION SECTOR CODE – GAZETTED 5 JUNE 2009 TARGETS LARGE CONTRACTORS & BEPs OBJECTIVES AND TARGETS : First & Second Measurement period

4. THE PRIORITIES OF THE CONSTRUCTION CHARTER The inclusion of black women in the ownership and management of construction companies and businesses. Include businesses that supply the mining and manufacturing sector with construction material. The threshold is revenue that 51% and more in construction sector The acceleration of technical skills and capacity of black youth, disabled persons and provide job and employment opportunities. Building the entrepreneurial capacity and sustainability of emerging black enterprises in the construction sector. The creation of sustainable jobs and long term employment opportunities in the rural and urban areas where construction project are being rolled out.

5. CONSTRUCTION CHARTER MUST BE TRULLY BROAD- BASED

6. BROAD OUTLINE OF THE CSCC The CSCC is created by the gazette of the Construction Sector Codes by the Minister of Trade and Industry on the 05th of June 2009, in terms of Section 9 (1) of the Broad Based Black Economic Empowerment Act 53 0f 2003. The gazette means that the Codes supersede the Generic BBBEE Codes. The Council is made up of representatives of 17 constituency organizations and operates through an Executive Committee and 4 sub-committees, namely : 1.Finance 2.Monitoring and Evaluation 3.Communication and 4.Legal

7. BROAD OUTLINE OF THE CSCC (cont) The Council is responsible for the monitoring and evaluation of the construction codes and ensures that : - There is substantive compliance with the construction codes. - There is annual reporting to the DPW, DTI and BBBEE Advisory Council. - Measurement of the objectives of the construction code. The different sub-committees have been set up to deal directly with the overall responsibilities of the Council, such as the Monitoring and Compliance deal with measurement and annual reporting.

8. EXCO MEMBERS Eunice Forbes Gregory Mofokeng Ingrid Campbell Sam Moleshiwa Nico Maas Felix Fongoqa

9. EXCO MEMBERS (Cont) Lydia Bici – Acting Chair Thabo Masombuka - CEO Phindi Mokoena Not in the pictures are Narius Moloto and Piet Matosa (representing BCAWU and NUM, respectively. The management of the CSCC is currently led by THABO MASOMBUKA, who is the recently appointed CEO

10. First priority of the CSCC is the finalization of the baseline report on the status of BBBEE in the construction sector since the gazette of the Sector Code in 2009. This is important to ensure the following : That the CSCC has reliable data to verify whether there has been progress data in empowerment in the Construction sector. To enable the CSCC to engage with the DTI on areas of alignment with the new codes based on factual data in the sector. To ensure that the annual reports sent to the dti and the BBBEE advisory council are substantive and factual. To identify barriers to transformation and investigate rectification measures. To ensure that there is accurate implementation and prioritization of identified trends. FINALIZATION OF THE BASELINE STUDY

11. Gazetted in June 2009, the construction sector code became effective, legally binding and applicable in the sector from the date of gazette. In order to ensure continual progress on transformation within the sector, they were legislated with two measurement periods. The implications is that for the second measurement period,targets on Employment Equity, Management Control and Preferential Procurement have increased significantly. The two periods in question are : This means that from this year, increased targets are now applicable for Companies to enjoy the same scorecard rating as last year. COMPLIANCE TARGETS First measurement period0 – 4 years( 5 June 2009 – 5 June 2013) Second measurement period5 – 7 years(6 June 2013 – 5 June 2017)

12. Response to the need to ensure inclusivity and increase the competitiveness of the sector. Sense of urgency in substantive implementation. - Substance must take precedence over formalities - Alignment of the targets with national priorities - Education > Decent Jobs > Economic Participation Vigilance and capacity to monitor the implementation. Vigilance and competence to interrogate the reports at company level. Vigilance and capacity to detect collusive and price fixing practices. CHALLENGES IN THE CONSTRUCTION SECTOR

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