At the back of the new BEE Codes, the Department of Trade and Industry has now appointed a task team to explore the appropriate balance between Employee share-ownership programmes (Esop) and Broad-based ownership scheme (BBOS). The Technical Task Team will report to the Minister of Trade and Industry on its recommendations within thirty (30) days.
Before this, the Department issued a "notice of clarification” in the Government Gazette, whereby Esops and BBOS could only give a Company a maximum of three points. Before this implementation, a company could attain the full 25 out of 25 points for black ownership if it had a large and well-designed employee share-ownership programme (Esop) or broad-based ownership scheme (BBOS).
Now with the appointment of the task team, there is more confusion.
The Minister of Trade and Industry, Rob Davies, spoke to Xolani Gwala about how the Department's aim is to support active empowerment of black people into the economy and skills development.
Amidst the confusion, the Minister did clarify that the Department will be removing the cap of the 3 points, as they don't believe that it is necessary anymore, and they will deal with the mischief surrounding fronting rather. This is deemed the quickest reversal of a notice by a Department.
A statutory definition is needed, and once we have that, we will be dealing with fronting. The first Notice was there to put a cap ont he points received and now we have decided in light of the confusion, to withdraw that notice, as we think that the commissioner wil be able to deal with the mischief arising out of the fronting of the schemes— Rob Davies
Listen to the full interview here:
This article first appeared on 702 : Task team established to explore BEE schemes