B-BBEE Commission releases annual report on B-BBEE status and trends for 2018

B-BBEE Commission releases annual report on B-BBEE status and trends for 2018
05 Jul 2019

Despite a slight decline in black ownership, the Broad-Based Black Economic Empowerment (B-BBEE) Commission has welcomed the widening of the audit scope of the Auditor-General to include B-BBEE compliance.

The trade and industry department revealed this in a statement on the B-BBEE Commission’s release of its annual report on the national status and trends of broad-based economic empowerment for 2018.

According to the report, only 43% of JSE listed entities and 10% of organs of state submitted their annual compliance reports as required, with the majority clearly failing to comply.

The report also shows no significant change in the levels of transformation with black ownership reflecting a decline to 25.2% ownership from 27% in 2017 and black management standing at 38%.

JSE-listed companies with at least B-BBEE contribution level 4 have increased by 10.9% as compared to 2017.

59% of state organs rated between level 2 and level 7 while 41% were level 8 to non-compliant B-BBEE status.

While the low level of reporting and the slow pace of improvement in B-BBEE elements remained a concern, the Commission also welcomed the fact that companies listed on the JSE need to submit annual B-BBEE reporting.

The Commission holds the view that the interventions coupled with enforcement measures will improve reporting and B-BBEE implementation going forward.

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(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)
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