Broad-Based Black Economic Empowerment Advisory Council
Introduction and Background
The Broad-Based Black Economic Empowerment Act, No. 53 of 2003, (the Act) makes provision for the establishment of the Broad-Based Black Economic Empowerment Advisory Council (The B-BBEEAC). In order to fulfil the legal mandate as outlined in the Act, the President of the Republic of South Africa will appoint the members of the Advisory Council, contemplated in section 6(1)(c) and (d) of the Act. The President appoints council members for a period of five years.
The Advisory Council provides guidance and overall monitoring on the state of B-BBEE performance in the economy with a view of making policy recommendations to address challenges in the implementation of this transformation policy.
Functions of the Council
The Council is responsible for providing leadership and direction in the implementation of B-BBEE in the country. The functions of the Council are to:
- Advise government on black economic empowerment;
- Review progress in achieving black economic empowerment;
- If requested to do so, advise on draft transformation charters; and
- Facilitate partnerships between organs of state and the private sector that will advance the objectives of this Act.
Who are Members of the Council
Nominations Provincial representation, sector expertise, gender and age are among the considerations that informed the composition of the Council.
In line with the legislation that applies to the Council, members are drawn from business, trade unions, community-based organisations and academia. They also have broad expertise in major sectors of the economy.
The President has appointed 14 Council members in terms of Section 6(1) of the Broad-Based Black Economic Empowerment Act (Act No 53 of 2003). The appointments are for a period of five years.
The Council comprises:
- President Cyril Ramaphosa : Chairperson of the Council;
- The lead Minister, Minister of Trade, Industry and Competition Mr Ebrahim Patel with the Minister’s Director General as an alternate;
- Mr Kganki Matabane, Chief Executive Officer of the Black Business Council (BBC);
- Ms Gloria Serobe, a veteran of black business;
- Dr Nthabiseng Moleko, an academic and specialist on industrial development funding;
- Ms Sibongile Sambo, who operates a company in the aviation services sector;
- Mr Sibusiso Maphatiane, an industrialist who runs his own metal foundry business;
- Mr Ajay Lulu, a chartered accountant and B-BBEE specialist;
- Ms Louise Thipe, a senior leader in the labour movement;
- Ms Makale Ngwenya, a trade unionist and researcher;
- Mr Kashief Wicomb, who leads the Progressive Professionals Forum (PPF);
- Dr Lulu Gwagwa, an academic, spatial development planner and businessperson;
- Mr Thulani Tshefuta, who represents the community constituency and the youth movement at the National Economic Development and Labour Council (NEDLAC);
- Mr James Hodge, Chief Economist of the Competition Commission;
- Ms Khathu Lambani Makwela, a director of a company in the healthcare sector; and,
- Ms Irene Dimakatso Morati, an internal auditor.
The Roles of the Sub-Committees
One of the functions of the Secretariat is to facilitate the establishment of the Sub-Committees (largely premised on the elements of B-BBEE) for the Council. This task will be carried out as advised by the Council. The main responsibilities of these Sub-Committees will include the following:
- To deal with specific matters pertaining to the implementation of B-BBEE and make recommendations to the Council;
- To analyse and request sectoral research in order to have informed position on the performance of different sectors in the implementation of B-BBEE;
- To assess progress or lack of progress on different elements of the B-BBEE’s scorecard;
- Recommend action to address non-compliant with B-BBEE legislative framework by different Organs of State and other entities;
- Recommend action to address misrepresentation and fraudulent activities (fronting) reported to the Council.
In establishing the Sub-Committees, the Secretariat will consider experts and practitioners of B-BBEE in the private and government sectors to assist the Council on technical matters relating to the B-BBEE and the relevant economic transformation legislations. This approach will ensure that Sub-Committee members with required content will be invited to serve in the Committees.
Section 7 (1) of the Act provides that the Minister of Trade, Industry and Competition must establish a constitution for the Council. In fulfilment of this provision, the Minister has drafted the constitution for the Council’s consideration.
The constitution outlines amongst other things, the powers of the Council, frequency of meetings, quorums and decisions, qualification criteria for membership of Council, termination of membership, conflict of interest, reporting to Parliament on transformation and others.
The Act states that the Minister may amend the constitution of the Council from time to time, after consultation with the Council. The Act further requires that the Council may, by resolution, and after consultation with the Minister, make rules to further regulate the proceedings of the Council.
Council Meeting Schedules
The Council will meet at least four (4) times a year, and, if needs be, the Council may hold ad-hoc meetings as and when required to deal with urgent matters regarding the implementation of B-BBEE.
The Sub-Committees meets on a monthly basis to deal with specific matters discussed at the Council meetings.
The Secretariat of the Council is located at the dtic, and it works closely with the Presidency to administer the work of the Council.
the dtic has already established the Secretariat, which is made up of the members of staff in the B-BBEE Unit from the dtic, namely;
Mr Jacob Maphutha – B-BBEE Chief Director
Mr Livhuhani Mukhithi – B-BBEE Director
Ms Christinah Mbangata – B-BBEE Administration Officer
The Secretariat is accountable to the Minister of Trade, Industry, and Competition and must –
- Keep full and proper records of all income and expenditure of the Council;
- Within three months of the end of the financial year, prepare and submit to the Council financial statements reflecting the income and expenditure of the Council;
- Keep accurate minutes of all Council meetings and circulate these to Council members;
- Make all the necessary logistical arrangements for Council meetings;
- Facilitate the appointment of Sub-Committee members of the Council;
- Facilitate B-BBEE studies and research on behalf of the Council and its Sub-Committees;
- Develop working relationships with key stakeholders, including Sector Council and others, to facilitate their reporting on B-BBEE;
- Carry out any other task assigned to the Secretariat by the Minister of Trade and Industry, after consultation with the Council.
The B-BBEE AC Secretariat:
the dtic Campus
Second Floor, Block A
77 Meintjies Street
Tel: (+27) 12 394 41707/012 394 5388