One of the main flaws around the enactment of Black Economic Empowerment (BEE) most likely was the over-emphasis on the subject of diversity of ownership together with senior management.
This has been one of several crucial concerns brought up during the Black Economic Empowerment Advisory Council meeting, chaired by President Jacob Zuma on Friday, which reviewed how to take the program of economic transformation into the future as well as encourage inclusive growth.
“The unintentional results of this specific over-emphasis is without a doubt fronting along with tender abuse. We are satisfied of the fact that the Council spoke out so firmly in opposition to fronting which happens to be one of the leading obstructions to the implementation of BBBEE.
“Fronting is unquestionably an insult to the dignity of the poor and in addition we are required to respond decisively in opposition to it. I am delighted of the fact that the Council is so motivated to work together with us to do something against this heinous practice,” Zuma said.
As reported by the Presidency, there was clearly a special focus on the implementation of the New Growth Path along with the role of Broad-Based Black Economic Empowerment (BBBEE) with regard to job creation during the meeting.
Specifically, the meeting emphasized the fact that BBBEE was not simply about big business deals for a handful of individuals in society but at the same time required a hand in empowering common citizens.
“With regard to this, the Council consider it necessary for the consistent enactment of broad-based BEE in every one of the sectors of the economy, with the intention that the policy touches the lives of a lots more people,” the Presidency said.
The meeting furthermore pointed out that BBBEE was in fact central to inclusive growth. Help and support was given to provisions of the New Growth Path which in turn demands a much more resilient focus on the broad-based components of the BEE regulations.
This included ownership by communities and workers, greater skills development along with career-pathing for all those working people, ongoing help and support for small enterprise and cooperatives, together with a completely new focus on procurement from local producers in an effort to assist job creation.
The meeting at the same time remarked that in order to contribute to job creation, BBBEE is required to, amongst others, encourage new enterprise development, stimulate local procurement and additionally make improvements to skills development and employment equity.
Participants additionally concluded that fronting would have to be exterminated coupled with effective mechanisms, and this includes possible punitive measures against those responsible for and guilty of fronting practices, would have to be put in place to stamp it out.
“It was decided that government, together with the help and support of the BBBEE Advisory Council, would definitely guarantee a revision of the BBBEE Codes in order to promote job creation, investment in small business and cooperatives, broad-based ownership and employment equity,” the Presidency said
The Council at the same time proposed that government will need to immediately make sure that appropriate monitoring and evaluation of the implementation of the BBBEE Act.