House Chair, I think it is significant that we will be debating this amending Bill today on this occasion following a debate on the historic and unfortunate Natives Land Act of 1913, because the history of disadvantage and underdevelopment that was inflicted on the majority of the people on the basis of racial discrimination during colonialism and apartheid is, in fact, the context of this particular piece of legislation.
We have long argued that broadening economic participation is both a political and an economic imperative. It's a political imperative because it does need to provide redress to those that were disadvantaged in the past. But it is also an economic imperative because those countries that draw on the skills and talents of their people, are the countries which succeed on the economic front.
At the beginning of this administration, the President completed the appointment of the last institution which was provided for under the 2003 Act - that was at presidential level - the Black Economic Advisory Council. In the deliberations of the advisory council, we looked at the impact of the black economic empowerment, BEE, legislation to date and we found that while it had some notable successes, there were some shortcomings. What we noted in particular was that it had a fairly limited impact on the economy as a whole. Secondly, we found that those parts of the scorecards which were most important from the point of view of enterprise development, skills development, were particularly underrepresented in the efforts of those involved in black economic empowerment.
We have set out on a process of introducing amendments. First of all, amendments to the codes of good practice which were released for public comment and which we intend to reintroduce in a couple of months' time are intended to introduce subminimum points to be scored by those companies that want to gain points in black economic empowerment in areas like supply and development, skills development as well as ownership.
Secondly, we are introducing this Bill today, which deals with three particular issues. The first is the question of complex fronting. We found that there are a number of cases of fronting and many of them have become more complex in nature. Fronting is an offence at two levels. Firstly, it's an offence against the people who are purported to be beneficiaries of black economic empowerment, but whose benefits are actually a lot less than they may seem.
Secondly, fronting enables companies to present themselves to government, to other agencies and to the public at large as though they are black- empowered whereas in fact they are not. There have been a number of cases in courts around fronting, but all of these had to operate in terms of the common law definition of fraud, which is in fact what fronting is.
The Bill before us today will define fronting as a statutory offence. It will make it easier for us to be able to deal with the various forms of fronting which this complex process is now taking. It will also establish a commission - a dedicated commission - that will operate as a trade entity within the Department of Trade and Industry, but will act impartially without fear or favour. Its tasks include the receiving and analysis of reports from state entities; surveying the scene as far as BEE is concerned; strengthening and fostering collaboration between the public and private sectors; and it will also receive and investigate complaints related to BEE fronting. It will provide a dedicated mechanism which those who had alleged fronting had taken place can approach. It will also have a range of potential solutions that it can provide.
The establishment of the commission will also enable us to remove from the codes one piece of what I can describe as business red tape. At the moment those who are engaged in supply and development contracts with small black- owned businesses require that those small businesses go to the verification agencies and pay something like R30 000 to have somebody tell them that they are black-owned.
In the codes we will be saying that 100% black-owned businesses automatically will be recognised as Level One. Those who have 50% ownership or more will automatically be recognised as Level Two. You will not be able to ask them to go for a verification certificate to prove that, but you will have to accept an affidavit. If they are lying, the mechanism is to go the commission. That will enable us to significantly lessen the burden that is currently imposed on small black supplier businesses.
Secondly, the Bill will regulate the verification processionals. There will be the independent regulatory board of auditors, which will play this role. Professionals who were involved in any kind of misleading rulings will also be subject to this Bill.
There is also a very important part of the Bill, which is about alignment to legislation. I have got no time to deal with that. That was introduced at the committee stage. I have pleasure in commending this Bill to the House. Thank you very much. [Applause.]
Hon House Chair and hon members of this House ... [Interjections.] ... of course if you think you are not honourable, behave as if you are not ... [Laughter.] The Bill before us ... [Interjections.]
Order please, hon members!
... is the Broad-Based Black Economic Empowerment Bill, B42B- 2012, dated 23 May 2013. I want to say at the outset that black economic empowerment is an important economic imperative. The political freedom that the 1994 democracy ushered in was essential, but, sadly, not sufficient. What it has done is to delay, to a certain extent, the deracialisation of the South African economy and the effective active participation of black people in the economy. We believe that this can no longer be delayed.
Most unfortunately, clause 1(b) in the Bill, which the hon Radebe will expand on, was totally objected to by all the opposition parties actively participating in the committee. Of course, that particular clause which they objected to is where we specifically point out what black people are. Under the apartheid law, black people were referred to as Africans, coloureds and Indians, and then the Chinese. [Interjections.] We are saying that the Whip will deal in detail with that particular clause which was objected to. Of course, ever since that objection in writing, over microphones and in Hansard, there has been considerable back-tracking. However, what I can say is that all parties strongly opposed the current practice of fronting, which I am sure we all appreciate is a sanitised term for fraud. Fraud is a criminal act. So we were all opposed to it, but again, ever since people were opposed to fronting there has been a measure of back-pedalling. [Interjections.]
Let me say regarding the Broad-Based Black Economic Empowerment Bill that, unfortunately, according to many people in business, the Act itself has not yielded the intended results. Indeed, the beneficiaries also said that. The purpose of this amending Bill ...
Hon Chairperson, I see this is not working, so it is very difficult to know how much time I have left. It says zero. [Interjections.]
Order, order please! Hon member?
I cannot see. Finally I can see, now that I have lost three minutes. [Interjections.]
The purpose is to align this piece of legislation impacting on Broad-Based Black Economic Empowerment with the revised codes of good practice, which the Minister has just mentioned, of good practice and to ensure that it is more coherent, and clearer.
The introduction of the concept of the Broad-Based Black Economic Empowerment Amendment Bill has made it clear and brought into practice verification professionals, and it also clarifies the powers of the Minister to make such regulations.
It also establishes a Broad-Based Black Economic Empowerment Commission to monitor and evaluate it. It is useless putting legislation on the table when we cannot track those who are breaking it and then we have no offences and penalties listed. I am sure you will be pleased to know that we adopted some draconian legislation here for 10 years. So I suggest that anyone who wants to front has another look at our jails or perhaps gets invited ... [Laughter.] ... to have a look and see what is waiting for them. As I have said, it also happens to deal robustly with noncompliance and circumvention. [Interjections.] It aims to give effect ... [Interjections.] ... Listen! [Interjections.]
Order, please! Order!
... to government policies, some of which you share and sometimes utilise to great effect. They are policies aimed at deracialising the economy to enable meaningful participation of black people, women, youth, workers, people with disabilities and rural communities, all in the interest of defeating poverty and creating employment.
Of course, we all agree that we want transformation, but talk is cheap. We need to actually implement it. We have also heard, and we know, that it is not only socially unjust - and I am addressing the corporate and businesspeople here; perhaps there is no one here who is in business, or is there? - however economically unsustainable ... [Interjections.] ... to think ... [Interjections.]
Order, please! Order!
... for one moment, hon Marais, that we can run an effective economy that draws its leadership and entrepreneurial capacity from only a small minority. It does not make economic sense either, those of you who have studied anything. [Interjections.] We have dealt with fronting and I have already explained that this is pure, plain fraud. Hon Minister, I hope you build another jail for these fraudsters. [Laughter.] [Interjections.]
Looking at clause 13(a), let me tell you that we all agreed to this clause at the time. It's amazing what happens. I wonder what they serve in our committees. We all agree, yet when they come here, they start changing their minds. [Interjections.] Pure, plain water! On at least three occasions in the committee, we tackled this clause on fronting and we said, you know what ... [Interjections.] You're quite right, it was longer.
It could be that people make mistakes about the information. One can forget what one's name is, one's colour and all of that. [Laughter.] What it says is that you must knowingly do the following. You must knowingly furnish false information. It's very, very important. We all know that the organs of state are subject to administrative action, etc. You cannot simply act in a cavalier style at all. We do know that, and you probably know it more than anyone.
Yet again on the point of fronting, what we do need to remember is that many of us have what is called the tick-box mentality, and I am not referring to agriculture. You get these huge forms and you just tick, tick, tick, and then say that you have complied. You've just ticked! This aims to do away with that kind of mentality and compliance.
We should not forget, and I think the ANC needs to remember this as well, that fronting deprived our black managers of the appropriate authority of their positions. That is very, very important. Let us call you a manager or a finance director, but it is actually an indictment on our language.
Do not forget that I have mentioned the 10 years to you. The other thing we ought to remember, though, is often forgotten. It is most unfortunate that there has been an impression that has been cultivated and nurtured that the Broad-Based Black Economic Empowerment Bill has destroyed all opportunities for whites. Well, I can assure you that that is utterly fallacious. [Interjections.]
Says who?
Says me, the white person here. [Laughter.] Now, the Broad- Based Black Economic Empowerment Bill has broad value for unlisted companies. Those of you who are not too sure what an unlisted company is, it's private and so on. There was no such value, but now they have the opportunity to check ... [Interjections.] ... value and decide on whether they should sell 70%, 30% or 25%. Let me sell 25% to Mr Mokoena. You are still there, participating. [Laughter.] It would be very unfair for legislation to prescribe to each and every business to comply with the Broad-Based Black Economic Empowerment Amendment Bill. However, this piece of legislation applies only to those businesses who wish to do business ... [Interjections.] Yes, you better wake up and listen. [Interjections.] It applies only to those businesses who wish to do business with the state or small, medium and micro enterprises, SMMEs. [Interjections.] Quite frankly, there is not a major ... [Interjections.] I do not even feel under threat. I am thinking of leaving Parliament next year to go into business myself. [Interjections.] [Laughter.]
The amendments of the Broad-Based Black Economic Empowerment Amendment Bill will have a positive impact on employment, income distribution and redistribution and economic growth transformation within, of course, a developmental state. Let us remember that we have an opportunity of adopting this Broad-Based Black Economic Empowerment Amendment Bill as we remember the new Land Act today in this House. We know that, along with the new measures in the Land Act, the Broad-Based Black Economic Empowerment Amendment Bill will redress the basic economic injustices that the Land Act introduced because that was an economic value to our black people ... [Interjections.] You all know that. You have a couple of blacks in your own party. [Laughter.] ... Let us not forget that.
Hon Speaker and hon House Chair, I want to say ... [Interjections.] ...
Order, please! Order!
... that I commend this Bill to you without amendments. Thank you. [Time expired.] [Applause.]
House Chair, I think that hon Fubbs is confused. This is Parliament and not Disney World. [Applause.] Let me just spell out where we stand on this issue. The DA supports the Broad-Based Black Economic Empowerment Amendment Bill. [Applause.] This Bill has a potential to promote redress, decrease inequality, promote economic growth and job creation. This is in line with our belief that reconciliation, redress, diversity and delivery are the most appropriate measures to redress the injustices of apartheid.
The Bill before us amends the Broad-Based Black Economic Empowerment, BBBEE, Act of 2003 - the original Act - in the main to do three very important things: firstly, to affirm compliance, which is to criminalise what is known as fronting; secondly, to set down incentive schemes to support compliant enterprises; and thirdly, to establish a commission to scrutinise and monitor compliance.
During the committee stage the DA put a number of proposals to the committee that were duly accepted: firstly, that the commission has the resources to be fully capable of dealing with queries; secondly, that the commission only investigates cases if there is demonstrable cause; thirdly, that the companies listed on the Johannesburg Stock Exchange be required only to provide compliance information and not to be burdened with capricious requests for additional irrelevant data; and lastly, that the appointment of the head of the commission is the joint responsibility of the DTI, the Minister and Parliament.
Let me just say to hon Fubbs that we also proposed to use the definition of "disadvantaged" and not to have this government get into the business of defining race. The apartheid government defined race. We don't think that we should define race, but we lost that battle. There is no backtracking here. We think that what is required is to move towards the definition of "disadvantaged".
Let me just add that we will be seeking last-minute changes, as you know, to ensure that due process and fair procedure are adhered to when it comes to the cancellation of contracts.
Colleagues, the further challenge that you must appreciate beyond this Bill is to ensure that the scorecard, a very important vehicle, firstly, drives genuine broad-based empowerment and prevents the re-empowerment of the already enriched and empowered; secondly, includes self-defined employment equity target compliance; and finally, is nonracial when it comes to enterprise development, education, training and corporate social investments. The scores generated by the application of the scorecard become the basis of the BBBEE compliance and not simply the historical identity of the owner. What matters in this scheme of things is whether empowerment is spread far and wide in the company, the sector and in the economy as a whole. Too often, as we know, the well-connected elite have enriched themselves in the name of black economic empowerment, BEE.
Let me also say that in the DA's plan for growth and jobs, we made the following additional proposals: firstly, to reduce the cost associated with complying with empowerment regulations for small qualifying enterprises by introducing an audit every second year rather than every year; secondly, to introduce an employee bonus scheme for unlisted firms that replicate existing share incentives as we have for listed entities; thirdly, to declare 50% of the value of shares awarded to qualifying employees to be tax deductible to the employer and exempt the full value of any eventual gain from income tax in the hands of the beneficiary; and finally - and very importantly - to work towards distributing shares in some of our country's state-owned enterprises in order to activate dead capital and thereby put financial resources in the hands of poor South Africans. [Applause.]
Colleagues, we live in a country with a history of cumulative race-based exclusion. In the twentieth century the 1913 Natives Land Act, the 1946 Asiatic Land Tenure Act and the 1950 Group Areas Act were the principal instruments - they were not the only instruments, but the principal instruments - of stripping assets from the voteless majority in this country. Therefore, supporting this amending Bill is a contribution to the righting of a historical wrong.
We also know that redress is not enough. We must put our assets to work so that our economy grows with opportunities so that there is a genuinely better life for all. Thank you very much. [Applause.]
Chairperson, Cope shall also support the Bill in front of this House. Even though it's almost 20 years into our democracy, it is still necessary to entertain a programme of corrective action for those who were previously disadvantaged under apartheid. On the Nelson Mandela twitter account this morning, they tweeted the following quote of Madiba: "None of us is a superstar and none can succeed without the success of the other".
This Bill and the codes are designed to introduce a new era of empowerment in which fronting is criminalised and with the incentives to promote the creation of black enterprises. What we should not allow is the illegal misuse of this concept to enrich the wrong ones, but we should also not hamper the entrepreneurial spirit of those who are not black and who were born after 1994.
Maybe now is not the time to do it, after only 20 years, but it must become part of a debate for the future. Black economic empowerment, BEE, should be a long-term strategy designed to ensure the long-term growth of our economy. It is a situation that is both politically stable and conducive to growth. The commitment to the spirit of BEE and how South Africans participate in it will guide its success. Nothing holds back an entrepreneur if there is freedom to get ahead, but you need time for those who were previously disadvantaged to catch up, and then only will it be fair. More wealth has been created in South Africa since 1994 than in the previous 300 years. We never realised that. However, not enough of that was passed on to black South Africans. In the 2011 census, we saw growth in the black middle class, but it is not enough. Some are calling for a sunset clause to be introduced; some say there cannot be a sunset if there has not been a sunrise. Let's hope that we soon see the rays of the rising sun over South Africa so that we can start the debate about the sunset clause and maybe conclude it in the next 10 to 20 years. This Bill might get us in a position to normalise the situation sooner. As I have said, Cope will support it. [Applause.]
Chairperson and hon members, from the outset, let me say that I have not served on this committee. I did not attend a single meeting of the committee. However, that does not mean I have not taken advantage of the Parliamentary Monitoring Group's Minutes, and I have read extensively what has been happening within the committee. That is largely because of the absence of the hon Ambrosini, and I think all members of this House will join me in wishing him well as he is recuperating.
Broad-based Black Economic Empowerment, BBBEE, has time and again proved itself as anything but what it was originally intended to be, namely broad- based. Studies have proven that it has only benefited a small portion of the black population, approximately 7% to be exact. Whilst the IFP supports BBBEE, or the notion of righting the wrongs of the past, we are concerned that the current model is defective in that it does not adequately address the broader populace of previously disadvantaged individuals. I think this Bill goes a long way in addressing the particular concern that we may have had with the original Bill. We are pleased that clause 1(b) reaffirms the definition of black people, as the hon chairperson of the committee said. The hon Minister had indicated to us the objectives of this Bill, and we support all the objectives of the Bill, but in particular the clause that relates to lessening the burden on verification. I think this is welcome, because small businesses do find it difficult to pay the kind of fees that are sometimes asked by some of these verification agencies.
If we take a general look at the accomplishments and track records thus far of Broad-based Black Economic Empowerment, we see a system which sometimes benefits some insiders and their cronies. We see a system in which sometimes the only criterion for being awarded a tender is that you were previously disadvantaged. Now, what we would like to suggest in this regard is that more skills training be offered by the department to previously disadvantaged persons. In a number of instances BBBEE companies are awarded contracts, but they do not have the capacity to carry out the work that is required, and then you find subcontracting taking place, and it goes to somebody that's not disadvantaged who would actually do the work. We need to empower those people who have been previously disadvantaged who actually have the skills to do the kind of work that is required of them.
I think this is very necessary, but we must have stringent forms of oversight and control. We would like to see fledgling entrepreneurs as well as small and medium-sized enterprises consisting of previously disadvantaged persons be given every opportunity and assistance by government to get off the ground to be able effectively to contribute to economic growth in South Africa.
Yesterday, I said to the hon President in a follow-up question that the role of small and medium enterprises must not be underestimated. They play a significant role in economic growth. It has been proven around the world that that is the case, and I think we must do everything to encourage them here. The corrupt and unscrupulous are met at every turn, and they have no qualms about stealing from their own if it means quick monetary gain for themselves, irrespective of whether they can do the work or not. The clause on fronting is certainly welcome, but I think in this context we must also look at major buy-outs, because when there are company buy-outs, you get a whole complex form of fronting and BBBEE, which defeats the purpose that is was originally intended for.
I think we should also be looking at equity participation of the general populace in companies. It is no good just getting jobs and contracts to do work but meaningful equity participation, like in MTN and other companies, and maybe we can look at some of our state-owned enterprises in this regard as a point of departure to provide preferential shares to previously disadvantaged people. We, as the IFP, will support this amending Bill. Thank you. [Applause.]
Agb Speaker, die VF Plus is op rekord in hierdie komitee dat ons ook die kommer deel oor die armoede wat tans in Suid-Afrika heers. Ons het ook telkemale onomwonde gestel dat die beleidsopsies waarop besluit word om armoede aan te pak prakties moet wees. Kortom, dit moet werk, en as dit nie werk nie, moet dit vervang word met bewese beleidsplanne. (Translation of Afrikaans paragraph follows.)
[Adv A D ALBERTS: Hon Speaker, the FF Plus is on record in this committee as having said that we also share the concern about the poverty which currently exists in South Africa. We also have stated unequivocally time and again that the policy options that are decided upon to tackle poverty should be practical. In short, they must work, and if they do not work, they should be replaced with proven policy plans.]
While the FF Plus, in principle, cannot support any empowerment measures based purely on race, and must therefore vote against this Bill, we also always pose the following important question with regard to policy and law: Does it work? In other words, has broad-based black economic empowerment, BBBEE, proven itself as a broad-based empowerment tool for the intended groups? The problem that we are facing with BBBEE is that there is unfortunately broad consensus overall that no proper research exists that can clearly indicate that BBBEE has empowered a broad base of black people. In fact, the existing evidence suggests the contrary, with a few exceptions.
Hierdie wetsontwerp poog nou om die toepassing van 'n onsekere beleid te verskerp deur die definitiewe kriminalisering van wanvoorstellings van bemagtiging. Die vraag is weer eens of dit gaan werk om swart bemagtiging af te dwing. Dit is egter ons posisie dat wetgewing wat nie in die eerste plek werk om sosio-ekonomiese dinamika te verander nie, nie sommer deur timmerwerk beter gemaak kan word nie. Somtyds is dit nodig om te erken dat daar terug gegaan moet word na die tekenbord. (Translation of Afrikaans paragraph follows.)
[This Bill now strives to intensify the implementation of a dubious policy by means of the definitive criminalisation of misrepresentations of empowerment. The question once more is whether the enforcement of black empowerment is going to work. However, it is our contention that no quick fix simply exists for legislation which is not effective in changing socioeconomic dynamics in the first instance. At times it is necessary to admit that one should go back to the drawing board.]
Minister, there are increasing indicators that we need different interventions to grow the economy, eradicate poverty and ensure the fulfilment of human rights imperatives. Rothchilds Consultancy, one of the leading BBBEE advisers, has admitted that BBBEE has failed and must be replaced with policy instruments that work. We need to rethink our economic paradigm so as to expedite growth. Therefore, as far as BBBEE is concerned, we are merely stumbling blindly into the future without knowing whether we are holding a flashlight to guide us or a dynamite stick that may go off any second. The FF Plus finds it ludicrous that a policy is entrenched even further when there is no clear data to support the policy direction.
Daar is wel stappe wat gedoen kan word om in die rigting van 'n ware inklusiewe ekonomie te beweeg. Dit is om die maatstaf van ras om bevoordeel te word deur middel van swart ekonomiese bemagtiging, SEB, te vervang met sosio-ekonomiese kriteria. Laasgenoemde sal die wetgewing meer in lyn met die realiteite van Suid-Afrika bring, waar groeiende armoede onder alle rasgroepe bestaan.
Minister, oorwegend beskou, doen u goeie werk. Ek hoop dat ons vorentoe ernstig in gesprek kan tree om beter beleidsopsies te implementeer en te formuleer wat werklik nie-diskriminerend van aard is en almal kan bevoordeel. Dankie. (Translation of Afrikaans paragraphs follows.)
[Indeed, steps do exist which can be implemented to move in the direction of a truly inclusive economy. They entail to replacing race with socioeconomic criteria as a yardstick in order to benefit from black economic empowerment. The latter will bring legislation more in line with the realities of South Africa, where poverty is increasing amongst all race groups.
Minister, in general, you are doing good work. I hope that in future we can have a serious discussion on how to implement and formulate better policy options that are indeed nondiscriminatory and will benefit all. I thank you.]
Hon Chairperson, hon members, the ANC, in its 53rd conference in Mangaung resolved to take decisive and resolute action to overcome the triple challenge of poverty, unemployment and inequality. This resolution is derived from the Freedom Charter, which says that the people shall share in South Africa's wealth.
The ANC is committed to the transformation of the structure of the economy through industrialisation, broad-based black economic empowerment and expanding the role of the state and the state-owned enterprises to achieve inclusive growth. In pursuit of a deracialised and inclusive economy, the ANC government has put in place a number of legislative instruments, among which are the BBBEE Amendment Bill, which is before this House today, the Co-operatives Bill, which has already passed through this House, and the Preferential Procurement Policy Framework Act.
The BBBEE Amendment Bill seeks to empower all black people who were economically disempowered during a long and painful three and a half centuries of colonial and apartheid land dispossession, racial oppression, discrimination and exploitation. It seeks to open up opportunities for black people to establish, own, and actively control and manage their enterprises. The BBBEE Bill encourages in particular the youth, women, people with disabilities and rural communities, to own and manage their own businesses and to create much-needed jobs.
Uhulumeni we-ANC uhlaba ikhwela futhi ugqugquzela abantu ikakhulukazi intsha, omama, abasebenzi, abakhubazekile nabantu abahlala ezindaweni zasemakhaya ukuthi basebenzise lo Mthethosivivinywa wokuThuthukiswa kwaBantu abaMnyama kwezoMnotho ngokuBanzi njengoba ubanikeza ilungelo eliphelele lokuziphathela amabhizinisi futhi bawalawule bukhoma bangathumeli. Ngakho-ke sithi singuKhongolose ningavumi ukuthunywa yilabo abakade benenza izithunzi nje sengathi ninamabhizinisi kanti baniqhuba phambili ukuze bathole imisebenzi kahulumeni. (Translation of isiZulu paragraph follows.)
[The ANC-led government is urging and encouraging people, especially the youth, women, labour, people with disabilities and those living in the rural areas, to use this BBBEE Amendment Bill as it completely empowers them with the rights of directly managing their businesses. As the ANC, therefore, we are saying you must not allow those who used you in fronting on the pretext that you own a business whilst they were just interested in doing business with the government.]
The BBBEE Amendment Bill has come at an appropriate time when the ANC government is accelerating land redistribution, when the development finance institutions such as the Small Enterprise Finance Agency, Sefa, the Industrial Development Corporation, IDC, the National Empowerment Fund, NEF, and many others are better able to assist the small, medium and micro- enterprises, SMMEs, co-operatives and other collectively owned enterprises with financial and institutional support. The BBBEE will also develop additional plans for financing black-owned enterprises, including incentive schemes, to make these enterprises sustainable. It comes at a time when the ANC government is hard at work to create decent jobs. The time is now, because for anyone to establish, own, control and manage a sustainable enterprise, he needs three basic means of doing business, namely land, capital and labour. The time to reclaim ownership by the black majority of the means of production is now.
The ANC is urging the millions of unemployed youth, women, workers and rural communities to ask themselves this question: How can I use the BBBEE Bill, the Co-operatives Bill and the Preferential Procurement Policy Framework Act to create a job for myself and 10 more people?
Sithi-ke kubantu bakithi emakhaya eBuhlebezwe ngakithi eXopo, kwaMashu, eMkhanyakude, eQunu, kuTsolo, e-Soweto, e-Mitchells Plain eGugulethu, e- Chatsworth, e-Wentworth, e-Klaarwater kanye nakwaDabeka nakuzo zonke izindawo zakithi lapho abantu bentula khona imisebenzi futhi befuna ukuzakhela amabhizinisi mabasukume bazenzele. (Translation of isiZulu paragraph follows.)
[We are then saying to our people in the rural areas of Buhlebezwe, my village in Ixopo, KwaMashu, Mkhanyakude, kuTsolo, Soweto, Mitchells Plain, Gugulethu, Chatsworth, Wentworth, Klaarwater and KwaDabeka and all other areas where people lack job opportunities and seek to start their own businesses, to stand up and do things for themselves.]
Do not wait for the government to create jobs, but work with the ANC government to create your jobs, because it cares. I thank you.
House Chair, hon members, guests, conceptually there is nothing wrong with both the principal Act and the amending Bill.
Azapo has always supported the need to tamper with power relations in the country, including changing ownership patterns. Being a product of the philosophy of black consciousness, I find it strange that the country has retrogressed and we find ourselves having further divided the oppressed of our land.
We were under the impression that the question of who is a black person had been settled in the late 1960s when Black Consciousness defined black people as those who are legally, politically, socially and economically oppressed and segregated; who identify as a group in the struggle for freedom. Black Consciousness rejected the division of black people into smaller groups of so-called Africans, coloureds and Indians. We have been called many things in the past. Black people are now referred to as the previously disadvantaged. There is nothing previous in the suffering of our people; they are still suffering even today.
Azapo agrees that fronting should be clearly criminalised and that it was difficult to depend only on common law to deal with fronting. Azapo will therefore support the Broad-Based Black Economic Empowerment Amendment Bill. I thank you. [Applause.]
MODULASETULO WA NTLO (Mong M B Skosana): Pele o tsamaya ntate Dikobo, ke itse Dikobo, ba re Dikobo. Ke eng?
Re a koba ntate, ke dikobo.
MODULASETULO WA NTLO (Mong M B Skosana): Ke Dikobo, e seng dikobo?
Tjhee. (Translation of Sesotho paragraphs follows.)
[The HOUSE CHAIRPERSON (Mr M B Skosana): Before you go, Hon Dikobo; I said Dikobo, they say it's pronounced Di-ko-bo. Which one is it?
We bend, sir, I am Dikobo.
Is it Dikobo? Not dikobo [blankets]?
No.]
House Chairperson, the ACP, like everybody else, stands to support the amending Bill.
The Bill deals with a number of issues, like promoting access to finance for black businesses and especially co-operatives, but it is the clause that deals with fronting that we view as of particular importance. Because fronting undermines black economic empowerment, it perpetuates exclusion. We want to call upon the Minister to ensure that the commission envisaged by the Act is effective and efficient in terms of monitoring compliance and that action is taken against those who do not comply.
We believe that this Act is a vital cog in the struggle to transform the socioeconomic relations created under minority rule. Creating access to businesses for our people ensures that the fundamental objective of our struggle, as defined by Amilcar Cabral, which is not about ideas, but about ensuring that the material conditions of our people change, and that people derive benefits from the freedom that we have, is realised. I thank you.
House Chairperson, to all intents and purposes, I consider myself a child of the new South Africa. I was seven years old in 1994 and one of my earliest conscious memories was of watching President Mandela's inauguration on TV with my grandmother. That means that I have no personal experience of living under apartheid, and I can only try to imagine and empathise with the pain of the people who did. But growing up in a democratic South Africa, the continued devastating legacy of apartheid was plain to see all around.
That is why the DA supports genuine efforts to redress the skewed and exclusive structure of our economy and expand economic freedom and opportunity to millions more people, and that is why the DA supports the Broad-Based Black Economic Empowerment Amendment Bill. This Bill is a significant step in the right direction because it outlaws black economic empowerment, BEE, fronting and commits state companies to complying with the codes of good practice uniformly. That's the item the Minister did not have time to speak about and that's a very positive point.
This Bill is, I believe, also a frank admission on the part of the ANC that their efforts at redress have thus far failed because the system has been captured by fraudsters and the super-wealthy, who keep on benefiting again and again. Under the ANC, economic empowerment has turned into a scheme for making a few well-connected individuals extremely rich. This has created a small and super-wealthy elite, with little or no benefit for most South Africans, and no fundamental change to the structural inequalities that still persist.
It has been mentioned here that apartheid was undergirded by the idea that people were members of racial groups before they were people in their own right. It is, for the record, lamentable that this Bill perpetuates those group definitions and that the governing party insisted on keeping these provisions in the Bill, despite the amendments proposed by every single other party represented in the committee. The hon James is right. There has been absolutely no backtracking in that regard; we've maintained that position consistently throughout the committee process and we do so today.
We believe that it is possible to achieve truly broad-based empowerment through redress measures which expand opportunities for the many, not reserve them for the few. That is why we support amendments to the code of good practice which rewards job creation, incentivises investment in education and prioritises people who have not yet benefited from BEE. They should be the ones to benefit first. They shouldn't be last in the queue.
We thank the chairperson of the committee for a very fruitful and mostly collegial committee process. We therefore have pleasure in supporting this Bill. Thank you. [Applause.]
Hon Chairperson, hon Ministers, Deputy Ministers and members of this august House, we meet today to debate one of the most important pieces of legislation which tries to demolish apartheid barriers.
The Constitution of the country demands that the government must put in place measures to redress the past injustice. Marcus Garvey once said: "A people without the knowledge of their past history, origin and culture is like a tree without roots." When strong winds blow, the tree falls down. So, by addressing the issue of Broad-Based Black Economic Empowerment, BBBEE, we will get to the root of this evil, which led to the discussion of this Bill today.
The Population Registration Act of 1950 classified all inhabitants of South Africa into one of the following categories: whites, who were sometimes referred to as Europeans; Africans, who were referred to as blacks, nonwhites or Bantu; coloured; and Indians, who were not recognised as South Africans because the apartheid government claimed that their citizenship could be claimed in India.
That's why in provinces like the Free State, the Indians were not allowed to stay there and when they were passing by they had to get a permit; it was because of this Population Registration Act. This categorisation determined the person's social and economic status. If you were black, the prospect of advancing in life was very limited. If you were categorised as white, your prospect of attaining economic freedom was enhanced. This enhancement of the white person's status was promoted through government intervention, better education, support of white businesses and access to cheap loans for the farmers. The black people were dispossessed of the land and their rights to participate in the economy were denied through laws which restricted them from opening businesses in the so-called white areas.
Even at the height of this repression, the ANC made a clarion call in the Freedom Charter that South Africa belongs to all who live in it, black and white, and therefore gave the future of the country a nonracial character. This call was made five years after the Population Registration Act was promulgated and three years after Bantu education was enacted, which was aimed at ensuring that blacks never attained full potential to participate in the economy.
In its 53rd conference, the ANC adopted the National Development Plan, NDP, as its long-term vision to transform the South African society from a colonial and apartheid past to a national democratic society. The NDP, in chapter 15, recognises that the Broad-Based Black Economic Empowerment Act is a tool to empower Africans, Indians and coloureds, as well as women, workers, youth, people living with disabilities and the people living in rural areas, through the facilitation of ownership and management of enterprises and productive assets.
The NDP also recognises the impediments to realising this goal of broad participation in the economy. Firstly, lack of capital to acquire ownership and control; secondly, the debt-driven deals; thirdly, misaligned targets and definitions between the BBBEE and the codes and charters that flow from the BBBEE Act.
The NDP recommends that a statutory body be formed in the Department of Trade and Industry to regulate BBBEE verification and control. In compliance with the NDP, this Bill proposes the establishment of the Broad- Based Black Economic Empowerment Commission, whose functions will include the following. Firstly, to oversee, supervise and promote adherence to this Act. This means that for the first time we are going to have a dedicated body which is going to scan the entire environment to ensure that this Act is complied with, unlike today, whereby we've got a fragmented approach to