New Black Economic Empowerment points shock, is illegal

The state’s new, one-sided interpretation of Black Economic Empowerment (BEE) codes in terms of which enterprises acquire points on the BEE score card is illegal and puts great pressure on all foreign investments, Adv. Anton Alberts, the FF Plus’ parliamentary spokesperson on the economy said (see BDLive report).

He said South Africa’s participation in Agoa could be derailed by this, especially so soon after the American chicken-import debacle and it borders on economic suicide.

According to media reports, South Africa’s department of trade and industry suddenly out of the blue, issued a notice on Tuesday regarding its one-sided interpretation of the new BEE codes which came into effect on 1 May.

It determines, amongst others, that broad based black economic empowerment (BBBEE) and worker’s share-holding in ownership schemes are subject to personal ownership of shares on the BEE score card.

This is a huge set-back for companies who have already transferred ownership on this basis to black employees or community bodies.

Adv. Alberts says this type of one-sided changing of the system to award points, is illegal as no consultation had taken place and it now denies many companies their existing BEE score.

“The FF Plus will be informing the American Congress of the new draconian burden on our economy so that Congress can take it up with the ANC government. The USA is already concerned about ownership restrictions on international investors regarding in particular the security industry.

“The economic rules of the ANC are now truly fascist as ANC cadres are being benefitting from BEE transactions where ownership is being transferred. Thus, the government is controlling economic activities to its own advantage, through ANC share-holding in companies.

Statement issued by Adv. Anton Alberts, FF Plus parliamentary spokesperson: Economy, May 7 2015