Uncertainty hurdle
ON MY MIND: Standoff puts future of BEE at stake
The standoff over the ‘once empowered, always empowered’ principle puts the future of black economic empowerment at stake
Fifteen years after mining industry stakeholders reached agreement on a historic charter for the transformation of the sector, a bitter dispute has erupted between companies and government over interpretation of the charter’s ownership requirements. The stakes have never been higher. Mines and banks are lobbying hard for the "once-empowered always empowered" principle to prevail in their sectors. If they have their way, this could set a dangerous precedent for other sectors of the economy. It could bring to a premature end more than two decades of BEE transactions long before SA has achieved meaningful transformation. The future of empowerment itself is at stake. If the trade & industry department (DTI) cannot get two critical sectors of the economy to be aligned with the amended BEE codes of good practice, the credibility of the new empowerment rules will be questioned. Since the DTI and the mineral resources department have shown that they cannot resolve this issue, it’s time for ...
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