New Black Economic Empowerment points shock, is illegal
The state’s new, one-sided interpretation of Black Economic Empowerment (BEE) codes in terms of which enterprises acquire points on the BEE score card is illegal and puts great pressure on all foreign investments, Adv. Anton Alberts, the FF Plus’ parliamentary spokesperson on the economy said (see BDLive report).
He said South Africa’s participation in Agoa could be derailed by this, especially so soon after the American chicken-import debacle and it borders on economic suicide.
According to media reports, South Africa’s department of trade and industry suddenly out of the blue, issued a notice on Tuesday regarding its one-sided interpretation of the new BEE codes which came into effect on 1 May.
It determines, amongst others, that broad based black economic empowerment (BBBEE) and worker’s share-holding in ownership schemes are subject to personal ownership of shares on the BEE score card.
This is a huge set-back for companies who have already transferred ownership on this basis to black employees or community bodies.