AfriBusiness to challenge Minister in Court over black economic empowerment

11 August 2016

AfriBusiness has just concluded consultations with its legal team and now prepares to take the Department of Trade and Industry (DTI) and its Minister, Dr Rob Davies, to court regarding the proposed new BEE regulations. The business rights watchdog is of the opinion that the 30-day period allowed for comments on the regulations is far too short considering the immense impact it will have on South African businesses.

The regulations were first published for commentary on 17 February 2016, where after the DTI was informed that the period for public comments had been too short. The DTI responded that the period allowed had been sufficient and that no extensions would be granted. The DTI thereafter published an amended version of the regulations, which came into effect on 6 June 2016.

“AfriBusiness is of the opinion that the period for public participation regarding these regulations did not provide a meaningful opportunity for the public to properly scrutinise the content and assess the impact that it will have on various economic sectors, which consequently prevented proper feedback and input. A court of law should have the final say on this issue and the legitimacy of the process that was followed,” says Armand Greyling, Law and Policy Analyst at AfriBusiness.

Issued by Armand Greyling, Law and Policy Analyst, AfriBusiness, 11 August 2016