LEGISLATIVE AMENDMENT AND DEVELOPMENT NEWSLETTER - JUNE 2022

This newsletter highlights the latest statutory amendments, enactments, caselaw, notices and ancillary developments relevant to the SERR Synergy products and services for the month. 

President Cyril Ramaphosa announces appointment of a new B-BBEE Advisory Council

In the President’s weekly newsletter dated 30 May 2022, he announced the appointment of a new Broad-Based Black Economic Empowerment (B-BBEE) Advisory Council to take ‘broad-based black economic empowerment forward’. This council comprises government, business, labour and other stakeholders and was established in terms of section 4 of the Broad-Based Black Economic Empowerment Act 23 of 2003 (B-BBEE Act) to advise the government on economic transformation.

The President avers that while there has been significant progress over the last two decades, there are some areas where there has been regression. He opines that South Africa has gone backwards when it comes to increasing black management control, upscaling skills development, entrenching enterprise development and broadening procurement to give opportunities to black women and the youth.

He concludes his newsletter by stating that the ‘appointment of the new B-BBEE Council will help us to expand the frontiers of broad-based black economic empowerment, [and] call[s] on business, labour and industry to work with the council as it undertakes this vital work’.

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Caselaw 

In the Pretoria High Court, SERR Synergy (Applicant) brought an application against the South African National Accreditation System (SANAS) (First Respondent) and the Minister of Trade, Industry and Competition regarding a directive issued by SANAS dated 6 April 2021 entitled ‘Clarity on Measurement Period’, to have it declared unlawful. On 22 March 2022, the Court ordered that the aforesaid directive issued by SANAS is unlawful, reviewed and set aside.

Furthermore, the Court declared that SANAS has no power in terms of the BEE Act or any other legislative instrument to prescribe the measurement period that must be taken into account when verifying an enterprise’s compliance with the BEE Act or the Codes of Good Practice under the BEE Act.

The effect of this Order is that verification agents are not bound by the unlawful directive of SANAS to only verify measured entities of financial statements not older than 12 months.

Employment Equity Act, 1998 (Act No. 55 of 1998)

The Minister of Employment and Labour, Thulas Nxesi, in Government Gazette No. 46322 dated 6 May 2022, published the register maintained in terms of section 41 of the Employment Equity Act (EEA) of designated employers which have submitted employment equity reports in terms of section 21 of the EEA.

The above Government Gazette can be requested by SERR Synergy Training and Skills Development Facilitator (SDF) clients from the SERR Synergy Training and SDF Departments.

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