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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Regulations

Broad-Based Black Economic Empowerment Regulations, 2016

Regulating the Administration and Implementation of the Broad-Based Black Economic Empowerment Act and the Functions of the Commission

Part 2 - Reporting Duties

12. Reporting duties

 

(1) A compliance report required to be included annually in terms of section 13G(1) of the Act from a sphere of government, public entity or an organ of state must—
(a) be based on verified information as required in the Act, reflecting the state of compliance in respect of the following elements:
(i) ownership where applicable;
(ii) management control;
(iii) skills development;
(iv) enterprise and supplier development;
(v) socio-economic development; and
(vi) any other sector specific element.
(b) reflect how each element contributes to the outcome of the scorecard in terms of the Codes of Good Practice.

 

(2) The sphere of government, public entity or an organ of state must file the audited annual financial statements and annual report compiled in terms of section 13G(1), with the Commission, in the prescribed FORM B-BBEE 1 within thirty (30) days of the approval of such audited annual financial statements and annual report.

 

(3) A public company listed on the Johannesburg Stock Exchange must submit a compliance report required to be included annually, in terms of section 13G(2) of the Act, to the Commission in the prescribed FORM B-BBEE 1 and must—
(a) be based on verified information as required in the Act, reflecting the state of compliance in respect of the following elements:—
(i) ownership;
(ii) management control;
(iii) skills development;
(iv) enterprise and supplier development;
(v) socio-economic development; and
(vi) any other sector specific element.
(b) reflect how each element contributes to the outcome of the scorecard in terms of the Codes of Good Practice.

 

(4) The report required in terms of section 13G(2) must be submitted to the Commission within ninety (90) days of the end of the financial year of the public company listed on the Johannesburg Stock Exchange.

 

(5) Where the public company listed on the Johannesburg Stock Exchange has included the annual compliance report required in terms of section 13G(2) of the Act in the audited annual financial statements and annual report, such company may file the audited annual financial statements and annual report with the Commission within thirty (30) days of the approval of the audited annual financial statements and annual report.

 

(6) A Sectoral Education and Training Authority must submit a report required in terms of section 13G(3) of the Act annually to the Commission, on the skills development spending and programmes in the prescribed FORM B-BBEE 2 and such report must—
(a) be based on verified information as required in the Act, reflecting the state of compliance in respect of the following elements:—
(i) skills training provided by member entities;
(ii) skills development services;
(iii) implementation of the scorecard;
(iv) critical and priority skills; and
(v) workplace skills plan.
(b) reflect how each element contributes to the outcome of the scorecard in terms of the Codes of Good Practice.

 

(7) The report required in terms of section 13G (3) must be submitted to the Commission within ninety (90) days of the end of the financial year of the Sectoral Education and Training Authority.

 

(8) Where the annual compliance report required in terms of section 13G(3) is already included in the audited annual financial statements and annual report of the Sectoral Education and Training Authority, such Sectoral Education and Training Authority may file with the Commission the audited annual financial statements and annual report within thirty (30) days of approval of the audited annual financial statements and annual report.

 

(9) Upon receipt of any report in terms of section 13G, the Commission must—
(a) within five (5) days acknowledge receipt of the report in writing;
(b) consider the report within ninety (90) days of receipt of the report; and
(c) respond in writing to the person who filed the report in respect of the state of compliance with the Act and highlight areas of improvement, if any.

 

(10) In the case of non-compliance with the Act, the Commission shall notify the sphere of government, public entity, the organ of state, listed company or Sectoral Education and Training Authority in writing by issuing the prescribed FORM B-BBEE 3 of the apparent non-compliance and require such entity to correct its report and comply with the requirements of section 13G within thirty (30) days.

 

(11) In the event the entity fails to comply as contemplated in section 13(G) of the Act, the Commission must—
(a) reject the report by issuing the prescribed FORM B-BBEE 4; and
(b) indicate the reasons for rejecting the report, and the sphere of government, public entity, organ of state, listed company or Sectoral Education and Training Authority must then be considered to have not complied with the requirements of the Act.

 

(12) The Commission may allow the sphere of government, public entity, organ or state, listed company or Sectoral Education and Training Authority that submitted the report in terms of section 13G of the Act to appear before the Commission in a closed or open meeting to respond to questions by the Commission as part of the consideration of the report, and take advice where necessary.

 

(13) If upon consideration of the report submitted in terms of section 13G the Commission is of the view that the report complies with the requirements of the Act, the Commission must notify the entity concerned in a prescribed FORM B-BBEE 5, in accordance with subregulations (1), (3) and (5) above.

 

(14) Any misrepresentation of information submitted in the report required in terms of section 13G by a sphere of government, public entity, organ or state, listed company or Sectoral Education and Training Authority shall be dealt with in terms of the Act.

 

(15) The Commission may conduct a site visit to verify the correctness of the information submitted in the report or initiate an investigation in terms of section 13J(1) of the Act in respect of any non-compliance with the requirements of section 13G of the Act.

 

(16) The Minister shall, within thirty (30) days of receipt of reports by sector charter councils in terms of section 10(4) of the Act, submit such sector council reports to the Commission for consideration in terms of these Regulations.

 

(17) Upon receipt of any report of the sector charter council in terms of section 10(4) from the Minister, the Commission must—
(a) within five (5) days acknowledge receipt of the report in writing;
(b) consider the report within ninety (90) days of receipt; and
(c) respond to the Minister in writing regarding the state of compliance and highlight areas of improvement, if any.

 

(18) The Commission may publish reports submitted to it in terms of the Act in a manner it deems appropriate including, making a consolidated summary and publication on its website.