Supreme Court Act, 1959
R 385
Electronic Communications Act, 2005 (Act No. 36 of 2005)RegulationsAmendment Regulations in respect of the Limitations of Control and Equity Ownership by Historically Disadvantaged Groups (HDGs) and the application of the ICT Sector Code, 20213. Application of the HDG Equity Requirement (Section 9(2)(b) of the EC Act) |
| (1) | The HDG Equity Requirement is not applicable to Class Licences. |
| (2) | Notwithstanding regulation 3(1), Class Licensees will be required to comply with the minimum B-BBEE Contributor Status Level requirement set out in regulation 4(2). |
| (3) | Equity held by Organs of State or Public Entities designated as B-BBEE Facilitators, by the Minister of Trade, Industry and Competition in accordance with the B-BBEE Codes, will be recognised as black owned equity in accordance with the B-BBEE Codes. |
[Regulation 3(3) substituted by section 3(3.1) of Notice No. 983, GG46245, dated 14 April 2022]
| (4) | An Individual Licensee must have a minimum of 30% of its ownership equity held by historically disadvantaged groups as required in terms of the EC Act, determined using the Flow Through Principle. |
| (5) | An Individual Licensee is required to provide the Authority with proof confirming compliance with regulation 3(4) on an annual basis in accordance with the Compliance Procedure Manual Regulations. |
| (6) | Proof of compliance with the HDG Equity Requirement will, subject to regulation 3(7), be by way of: |
| (a) | a B-BBEE Verification Certificate confirming ownership equity held by Black People determined using the Flow Through Principle; and/or |
| (b) | A credible assurance report issued by a SANAS recognised and accredited verification agency confirming ownership equity held by historically disadvantaged groups (excluding Black People if a B-BBEE Verification Certificate is provided in terms of regulation 3(6)(a)) determined in accordance with Appendix 1. |
[Regulation 3(6)(b) substituted by section 3(3.2) of Notice No. 983, GG46245, dated 14 April 2022]
| (7) | Proof of compliance with the HDG Equity Requirement by Individual Licensees who are recognised as EMEs or QSEs under the ICT Sector Code may be by way of a sworn affidavit or CIPC issued certificate, issued in accordance with the ICT Sector Code, confirming the Individual Licensee’s annual Total Revenue and level of ownership equity percentage held by Black People determined using the Flow Through Principle. |
| (8) | Notwithstanding regulation 3(5), an Individual Licensee is required to provide the Authority with proof of compliance with the HDG Equity Requirement when making any kind of application pertaining to a licence (including new applications, transfers, renewals and amendments). |
| (9) | The Authority may, within ten (10) Business Days of receiving an Individual Licensee’s proof of compliance with the HDG Equity Requirement for purposes of regulations 3(5) or 3(8), request any supplementary information from an Individual Licensee which it deems necessary in order to verify compliance with the HDG Equity Requirement. |
