BBBEE ‘pioneers’ welcome government clarity on empowerment status
A collective of six of South Africa’s pre-eminent broad-based black economic trusts have welcomed Trade, Industry & Competition Minister Ebrahim Patel’s public support for their broad-based ownership schemes (BBOS).
The trusts have been engaging with government for the last 24 months to have their status formally recognized under current BBBEE legislation, and to have this confirmed by DTIC’s BBBEE Commissioner.
The six affected trusts are:
- Kagiso Charitable Trust
- Mineworkers Investment Trust
- HCI Foundation
- Women’s Development Bank Trust
- Ditikeni Investment Trust
- Wiphold Trusts
Minister Patel stated on Friday that there was wide agreement that employee ownership schemes where shares vested in the names of individuals constituted genuine black ownership.
“Everyone agrees that [they] fall squarely within the definition of BEE,” he was quoted as saying. “On the matter of broad-based trusts that hold equity and their status: I think that these are the pioneers of BEE and should be recognized appropriately – for example, companies such as Kagiso.”
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Speaking on behalf of the six trusts, MIC CEO Mary Bomela said: “We welcome Minister Patel’s comments that go some way to put an end to the uncertainty around the status of the pioneering BBBEE trusts. We urge Minister Patel to issue a public notice soonest regarding the interpretation of the Code as the continued regulatory uncertainty has had a negative impact on their current and future business prospects.”
“The trusts have always regarded themselves as being fully compliant in terms of current BBBE legislation, and in terms of Statement 100 of the amended codes of good practice. This applies particularly to the status of our BBOS, which have been through rigorous scrutiny and verification,” she said.
“We are pleased to hear the Minister agree that our structures, some of the earliest empowerment vehicles in South Africa, represent true black ownership and empowerment. This is excellent news for our trusts and their more than 642 000 beneficiaries, and we eagerly await publication of an announcement to this effect from the DTIC.”
* The Kagiso Charitable Trust is a shareholder at East Coast Radio via Kagiso Tiso Holdings
