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The B-BBEE Commissioner

The B-BBEE Commissioner

The Broad Based Black Economic Empowerment Commission was established as an entity within the administration of the Department of Trade & Industry to oversee the implementation of the B-BBEE Act, including investigating any matters arising from the application of the Act such as fronting.

Who must report to the Commissioner?

  • Government

Must file audited annual financial statements and annual report compiled in terms of Section 13G

  • Public Companies

Must submit a compliance report required to be included annually in terms of Section 13G of the Act

  • SETA

Must submit report annually on skills development spending and programs

  • The Department of Trade & Industry

The Minister of Trade & Industry must within 30 days of receipt of reports by Sector Charter Councils submit such sector report to the B-BBEE Commission for consideration

Business Transactions

The DTI lowered the threshold for major B-BBEE ownership transactions from R100 million to R25 million.

A major B-BBEE transaction means any transaction between entities that result in ownership recognition in terms of Statement 100. The threshold is registering the transaction with the B-BBEE Commission based on the transaction value excluding administration, professional and legal fees.

According to the gazette, all transactions with a value equal to or exceeding R25 million must be registered with the B-BBEE Commission.

Transactions concluded before 24 October 2014 may be voluntarily registered with the B-BBEE Commission. The threshold excludes transactions under Code Series 103 of the Amended Codes of Good Practice

Violation of the Act

  • Fines

Up to 10% of annual turnover

  • Imprisonment

Jail time of up to 10 years

  • Legal Exposure

Getting sued of blacklisted in business