# Regulatory Compliance Category > BEE and Employment Equity Forum >  R Davies on Black Economic Empowerment (BEE) compliance

## I Robot

Minister Davies says Black Economic Empowerment (BEE)                         compliance is low     

6 April 2010 

The Minister of Trade and Industry, Dr Rob Davies, says more than 75 percent of the private sector is not complying with the Broad-Based Black Economic Empowerment (B-BBEE) codes of good practice in terms of the baseline study that was conducted in 2008/09. 

Minister Davies was briefing the media on the sidelines of the orientation session of the B-BBEE Advisory Council that took place at the Department of Trade and Industry campus in Pretoria today. 

"The research conducted in July 2008 shows the overall impact of BEE remains modest. Less than five percent of the Johannesburg Stock Exchange (JSE) is owned by black people. More than 75 percent of companies in the private sector are not BEE compliant. 

"The level of compliance is even worse when it came to the indirect elements of empowerment such as skills development and enterprise development procurement. The figure does not mean that companies have not made any effort in an attempt to be BEE compliant," said Davies 

Minister Davies said the government was looking at getting the advice of the council on how to address the BEE challenges highlighted by the research. 

"We are all of the view that empowerment has got to play a significant role in the transformation of this country. In particular, we need to ensure that those elements that link empowerment to enterprise development are actually more effective than they appear to have been up to now," added Davies 

He added that the under the B-BBEE Act the council was empowered to conduct its own research, monitoring and evaluation of BEE implementation. 

"As we proceed we will be able to consider what information we need to have on regular basis in order to chart the progress of empowerment and what it is that we need to be doing to ensure that empowerment has more substantial effect and that that effect is linked to the broader objectives of economic development and enterprise creation," concluded Minister Davies. 

The induction session was the second Broad-Based Black Economic Empowerment Advisory Council meeting since its launch by Deputy President Kgalema Motlanthe in February early this year.

More...

----------


## Dave A

:Hmmm:  I would love to look at the actual numbers used in coming to this conclusion. For starters, I would have thought over 75% of businesses in the private sector would be EME's - which means they're compliant.

----------


## murdock

this is the joke i have been compliant all along i didnt even know until i took the time to read one of the threads on this forum...now i have a some choses either spend the 750 or go the dti route or go the accountant route.

this puts a new spin on work for the future...i just wonder how effective level 4 will be in goverment and municipality tenders.

when i aprrouch the durban electricity department many years ago i was told in a round about way that unless i employed a partner chances were slim.

----------


## tec0

Well I find this very hard to believe simply because government owns Telecommunications, Natural power-grid and then DSTV allows for black only investors. Mining companies across the board have dismissed there old vender lists and is forcing for BE owned businesses regardless of speciality or skill. 

I am sorry but I honestly cannot understand the motive anymore. 20 engineering shops around our aria have closed down due to BE. About 1000+ people have lost their jobs from mid 2008 and to 2010 due to mining closures and there are no skills development programs at this point in time.

I dont get it  :Confused:

----------


## murdock

i dont get it either...when i qualified as an electrician many years ago...we were told that there were tooo many electricians and the south african railway services couldnt place us so our salries were cut in half and were were given trade hand jobs or we could leave...i went back to the apprentice schools which once had as many as 250 people doing training at any time...a year after i left they offered packages to get people to leave...now there is not even 250 training in the entire country.

what happened to eskom and telkom training centres?

i hear the unemployment rate of whites since 1994 is something like 1 mill...any truth in this

----------

