Broad-Based Black Economic Empowerment Advisory Council

Introduction and Background

The Broad-Based Black Economic Empowerment Act, No. 53 of 2003, (the Act) makes provision for the establishment of the Broad-Based Black Economic Empowerment Advisory Council (The B-BBEEAC). In order to fulfil the legal mandate as outlined in the Act, President Jacob Zuma appointed the members of the Advisory Council, contemplated in section 6(1)(c) and (d) of the Act, on 21 October 2014 and their term will elapse in 21 October 2019. The President appoint new council members for a period of five years.

The Advisory Council will provide guidance and overall monitoring on the state of B-BBEE performance in the economy with a view of making policy recommendations to address challenges in the implementation of this transformation policy.

Functions of the Council

The Council is responsible for providing leadership and direction in the implementation of B-BBEE in the country. The functions of the Council are to:

  • Advise government on black economic empowerment;

  • Review progress in achieving black economic empowerment;

  • If requested to do so, advise on draft transformation charters; and

  • Facilitate partnerships between organs of state and the private sector that will advance the objectives of this Act.

Who are Members of the Council

Nominations were considered from all the relevant constituencies, including organised labour, the private sector, community-based organisations and academic institutions.
The members are the following:

  1. President Jacob Zuma, Chairperson of the Council.

  2. Dr Rob Davies, Minister of Trade and Industry.

  3. Ms Susan Shabangu, Ministry in the Presidency for Women.

  4. Ms Mildred Oliphant, Ministry of Labour.

  5. Mr Thembelani Thulas Nxesi, Ministry of Public Works.

  6. Mr Cedrick Gina, General Secretary, COSATU: Liberated Metalworkers Union of South Africa (LIMUSA).

  7. Ms Gugulethu Sigasa, President, Association of the Advancement of Black Accountants of Southern Africa.

  8. Mr Puleng Herman Tsebe, National Deputy Chairperson, Disabled People of South Africa (DPSA).

  9. Mr Sandile Donald Muziwenkosi Zungu, Secretary General of BBC and CEO of Zungu Investment Co, Black Business Council (BBC) and Zungu Investment Company.

  10. Mr Mlungisi Manci, Member of the Board, Business Unity South Africa.

  11. Prof Elias Links, Board Member on various Blue Chip boards, University of Stellenbosch.

  12. Ms  Chantyl Cyntia Mulder, Senior Executive: Professional Development - Transformation.

  13. Mr Lefadi Lucas Makibinyane, Chief Executive Officer, Council for Consulting Engineers of SA.

  14. Dr Edmund Thamsanqa Mazwai, Entrepreneur and serves as an elder in the Black Business Council, Mtiya Dynamics and former Head of University of Johannesburg's Small Business Development Centre.

  15. Mr Yershen Pillay, Executive Chairperson, National Youth Development Agency (NYDA).

  16. Ms Sankie Dolly Mthembi-Mahanyele, Central Energy Func, Chairperson.

  17. Mr Aggrey Mahanjana, Managing Director and Secretary General, African Farmers Association of South Africa.

  18. Ms Zinhle Lindeka Immaculate Cele, Deputy Secretary General, Progressive Professionals Forum (PPF).

  19. Ms Motlanalo Glory Khumalo, Deputy President, Black Management Forum (BMF).

  20. Ms Caroline Nomnikelo Magadla, Treasurer General, South African National Apex Cooperative Ltd (SANACO).

The Roles of the Sub-Committees

One of the functions of the Secretariat is to facilitate the establishment of the Sub-Committee for the Council. This task will be carried out as advised by the Council. The main responsibilities of these Sub-Committees will include the following:

  • To deal with specific matters pertaining to the implementation of B-BBEE and make recommendations to the Council;

  • To analyze and request sectoral research in order to have informed position on the performance of different sectors in the implementation of B-BBEE;

  • To assess progress or lack of progress on different elements of the B-BBEE's scorecard;

  • Recommend action to address non-compliant with B-BBEE legislative framework by different Organs of State and other entities;

  • Recommend action to address misrepresentation and fraudulent activities (fronting) reported to the Council.

In establishing the Sub-Committees, the Secretariat will consider experts and practitioners of B-BBEE in the private and government sectors to assist the Council on technical matters relating to the B-BBEE and the relevant economic transformation legislations. This approach will ensure that Sub-Committee members with required content will be invited to serve on the Committees.

Constitution

Section 7 (1) of the Act provides that the Minister of Trade and Industry must establish a constitution for the Council. In fulfilment of this provision, the Minister has drafted the constitution for the Council's consideration.

The constitution outlines amongst other things, the powers of the Council, frequency of meetings, quorums and decisions, qualification criteria for membership of Council, termination of membership, conflict of interest, reporting to Parliament on transformation and others.

The Act states that the Minister may amend the constitution of the Council from time to time, after consultation with the Council. The Act further requires that the Council may, by resolution, and after consultation with the Minister, make rules to further regulate the proceedings of the Council.

Council Meeting Schedules

The Council will meet at least four (4) times a year, and, if needs be, the Council may hold ad-hoc meetings as and when required to deal with urgent matters regarding the implementation of B-BBEE.

The Sub-Committee may meet on a monthly basis to deal with specific matters discussed at the Council meetings.

Council Sectretariat

The Secretariat of the Council is located at the dti, and it works closely with the Presidency to administer the work of the Council.

the dti has already established the Secretariat which is made up of the members of staff in the B-BBEE Unit from the dti, namely;

Mr Liso Steto - Acting Chief Director
Ms Rachel Malatji - Director

The Secretariat is accountable to the Minister of Trade and Industry and must -

  • Keep full and proper records of all income and expenditure of the Council;

  • Within three months of the end of the financial year, prepare and submit to the Council financial statements reflecting the income and expenditure of the Council;

  • Keep accurate minutes of all Council meetings and circulate these to Council members;

  • Make all the necessary logistical arrangements for Council meetings;

  • Facilitate the appointment of Sub-Committee members of the Council;

  • Facilitate B-BBEE studies and research on behalf of the Council and its Sub-Committees;

  • Develop working relationships with key stakeholders, including Sector Council and others, to facilitate their reporting on B-BBEE;

  • Carry out any other task assigned to the Secretariat by the Minister of Trade and Industry, after consultation with the Council.

Contact Information

The B-BBEE AC Secretariat:
the dti Campus
Ground Floor, Block B
77 Meintjies Street
Sunnyside
Pretoria
0001

Tel: (+27) 12 394 1630
Fax: (+27) 12 394 2630
E-mail: BBBEEAC@thedti.gov.za