ANDILE KHUMALO: A sign that regulators are getting smarter about empowerment
Among a plethora of Government Gazettes published at the end of last month are four that deal with amendments to the BBBEE codes
Ayear ago almost to the day, I wrote in this newspaper about the draft amendments to the generic broad-based BEE (BBBEE) codes and some of the weird changes proposed. My biggest concern was the notion that big companies could essentially get level 1 or level 2 based purely on their black shareholding. As we know, this never saw the light of day, and while my deep-seated ego would like to think this was due to someone important reading this column, it is more likely that our regulators are getting smarter about this BBBEE thing and beginning to realise that business reacts to regulation, not prompts to do the right thing.
When the draft changes were first introduced they contained an "enhanced recognition" clause that would automatically score all 100% black-owned businesses as level 1 BBBEE contributors and those with black shareholding above 51% as level 2.