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BEE

SANRAL supports the principles of BEE and SANRAL has developed its own BEE policy. SANRAL as an organization, being an agency in the Department of Transport stable has to adhere to the Transport Sector Transformation Charter, specifically the Public Sector sub-section. The proclamation process has begun and will take between 12 to 18 months before the Transport charter is gazetted as a code of good practice (under Section 9 of the BBBEE Act no. 53 of 2003) and then it will be compulsory on all the participants in the Transport economic sub-sector.
 

 

INTRODUCTION

South Africa’s policy on BEE is not simply a moral initiative to redress the wrongs of the past. It is a pragmatic growth strategy that aims to realize the country’s full economic potential.

No economy can grow by excluding any parts of its’ people, and an economy that is not growing cannot integrate all of its’ citizens in a meaningful way.

The constitution of South Africa requires (chapter 2 section 9 (2)) “to promote the achievement of equality, legislative and other measures designed to protect or advance persons, or categories of persons, disadvantaged by unfair discrimination may be taken.”

The Constitution forbids unfair discrimination on the basis of race, sex, colour, religion etc but allows by proper legislative controls and measures fair discrimination for the purposes of eliminating the disadvantages created by discrimination of the past. Three pieces of legislation enacted for these purposes are the Employment Equity Act (no. 55 of 1998); the Broad-Based Black Economic Empowerment Act (no.53 of 2003) and the Preferential Procurement Policy Framework Act (no. 5 of 2000)..

BACKGROUND

A definite feature of apartheid was the use of race to control and restrict black people from access to economic opportunities.
The under-development of black South Africans was characterised by the progressive destruction of productive assets; deliberate denial of access to skills and jobs; the undermining of self employment and entrepreneurship. In combination with one another, these policies restricted wealth and skill endowments in black communities, thereby inhibiting their participation in a de-racialised economy on an equal footing.

In order to overcome the inequalities of the past governments strategy is to position BBBEE as a tool to broaden the country’s economic base, accelerate growth, job creation and poverty eradication.

To give effect to this government enacted the BBBEE Act (No.53 of 2003). This Act will have a significant impact on the procurement processes of SANRAL. The revised procurement principles must imbue the requirements and principles embodied in the BBBEE, Preferential Procurement Policy Framework Act (PPPFA), the Supply Chain Management Regulations of National Treasury as well as the Public Finance Management Act.

SANRAL supports this policy and strategy of government and vigorously promotes the achievement of these objectives.

FUNDAMENTAL PRINCIPLES OF BBBEE

The BBBEE seeks to accelerate the de-racialisation of the SA economy and to fast track the elevation of historically disadvantage individuals (HDI) communities into the mainstream of the economy.

The instrument used to measure progress and assign scores is the Balanced Scorecard which measures an enterprises score in terms of ownership, management, employment equity, skills development, preferential procurement, enterprise development and issues that are specific to the industry or economic sector.

The de-racialisation of our economy is geared towards enhancing the economic growth of SA. The proceeds and benefits accrued out of the BEE process must be leveraged in a manner that will ensure that these are re-invested in the SA economy.

In order for the economy to grow, more enterprises are needed that are able to:

    • Produce value-added services and goods
    • Employ SA citizens in productive activities

DEFINITION OF THE BBBEE

BBBEE is an integrated and coherent socio-economic process that directly contributes to the economic transformation of SA and brings about significant increases in the number of black people that own, manage and control the country’s enterprises. This goes hand-in-hand with reducing the significant gaps in the income levels that currently exist, between the various race groups in the country.

BENEFICIARIES OF BBBEE

The beneficiaries are all black people (African, Indian and Coloured) with specific emphasis on the following groups:

    • Black women
    • Black youth
    • Black employees
    • Black people with disabilities
    • Black people living in rural areas

THE BALANCED SCORECARD

The balanced scorecard is the fundamental measuring tool of BEE compliance and progress. The core components, elements and beneficiaries are as follows:

Component

  • Direct Empowerment
  • Human Resource Development
  • Indirect Empowerment
  • Residual

 

Element

  • Ownership Management and Control
  • Employment Equity
  • Skills Development
  • Enterprise Development
  • Preferential Procurement
  • Industry or economic sector issues

 

Beneficiary

  • Black Equity holders, Executive managers, Investors, Communities and employees
  • Black employees, job seekers and new entrants into the industry,
  • Black suppliers, communities and other relevant external stakeholders
  • Industry or the community at large

 

TRANSFORMATION CHARTERS APPLICABLE TO SANRAL

The Transport Sector Charter is applicable to SANRAL as an entity. The service providers to SANRAL fall into 3 broad categories viz:

  • Contractors and Built Environment Professionals – Construction Charter
  • Land and related service providers – Property Charter
  • Banks, Financial Advisor – Financial Sector Charter

The above generic core components and elements are applicable to all the charters, it is just targets and weighting that differ from charter to charter. It is imperative and necessary for SANRAL to check the compliance of all service providers to ensure that they also comply to charters in their economic sectors and if the particular economic sector or industry does not have a charter then the generic charter of DTI will then be applicable.