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.]