President Jacob Zuma has signed the Broad-Based Black Economic Empowerment Amendment Bill 2013 into law.
Dr Rob Davies, the minister of Trade and Industry, says the signing of this Bill into law is significant, as it will streamline the monitoring and evaluation of empowerment.
A brief overview of the Act
- The Act establishes a commission to monitor and report BEE compliance
- The Auditor General is now required to report BEE compliance
- Government departments, municipalities and state owned entities are now expected to implement BEE compliance in the same manner as the private sector is expected to
- Companies listed on the Johannesburg Stock Exchange are also required to report BEE compliance to the Commission
- The Act also empowers the Commission to cancel contracts, enforce penalties to companies who have been awarded contracts and found to be engaging in fronting practices.