Radical economic transformation: getting the numbers to line up
Aligning financial year-ends with empowerment assessment periods is essential to make meaningful comparisons for tender assessments
In order to achieve radical economic transformation, our yardsticks of measurement need to be standardised based on the most up-to-date information available as far as pragmatism allows. Aligning companies’ financial statements and broad-based black economic empowerment (BBBEE) verification reports is a step towards consistency in BBBEE measurement and tracking commitment to transformation. As part of the government’s objective to fast-track transformation, the Department of Trade and Industry (DTI) established the BBBEE Commission under the BBBEE Amendment Act 46 of 2013. The commission began operating in 2016 and enforces, investigates and oversees BBBEE practices, ensuring entities adhere to the BBBEE Act. The second part of the commission’s regulations, issued in 2016, stipulates that JSE-listed companies, organs of state, and sector education and training authorities (Setas) submit their BBBEE certificate, latest annual financial statements, the prescribed certification form an...
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