In terms of Section 13G, read with regulation 12 of the B-BBEE Regulations:

(a) All sphere of government, public entities and organs of state must report on their compliance with Broad-Based Black Economic Empowerment in their audited annual financial statements and annual reports report required under the Public Finance Management Act, 1999 (Act No. 1 of 1999) within thirty (30) days post approval of such annual report and financial statements in a prescribed B-BBEE 1 Form.

(b) All public companies listed on the Johannesburg Stock Exchange (JSE) must in a prescribed B-BBEE 1 Form provide to the B-BBEE Commission, in such manner as may be prescribed, a report on their compliance with Broad-Based Black Economic Empowerment 30 days’ post approval of annual reports and financial statement or ninety (90) days of the financial year of the listed entity, irrespective of whether it is primary or secondary listing.

(c) All Sectoral Education and Training Authorities contemplated in the Skills Development Act, 1998 (Act no. 97 of 1998), must report on skills development spending and programmes to the B-BBEE Commission 30 days’ post approval of annual reports and financial statements or 90 days after end of the financial year of the Sectoral Educating Training Authorities in a prescribed B-BBEE 2 Form.

The measured entity submitting a Broad-based Black Economic Empowerment compliance report to the B-BBEE Commission must complete and submit the prescribed form obtainable from the gazette B-BBEE Regulations on the B-BBEE Commission’s website, (www.bbeecommission.gov.za)

The B-BBEE Commission therefore requires the following information to be submitted with the prescribed form as outlined in the matrix (attached)

The letter of authority or any similar proof that the person submitting the B-BBEE compliance report is authorised by the measured entity to submit the report if not submitted by the Chief Executive Officer or similar accounting authority or officer.

Ownership and Management Control Element

• Percentage of black shareholder, number of director/managers for each category, race classification, gender, age, location and disability indication.
• indicate dividends declared

Skills Development Element

• number of black persons trained per race classification, gender, age, location, disability indication, disability and value thereof.

Enterprise and Supplier Development Element.

• number of all black owned EMEs/QSEs enterprise and supplier development entities assisted and value thereof.

Socio Economic Development Element.

• number of black participants, race classification, gender, geographic location and value thereof.

All the referred information, including any documents that the reporting party/entity deem relevant to the compliance report must be submitted to enable the B-BBEE Commission.

Where any of the information required is not applicable the reporting party/entity must indicate so in the submission

The B-BBEE Act does not make a distinction on reporting requirements based on the nature of the listing.

Thus, all entities listed on the JSE, irrespective of whether or not it is primary or secondary listing must report in terms of section 13G (2) of the B-BBEE Act read with Regulations 12 of the B-BBEE Act.

The B-BBEE Act has defined a fronting practices to mean transactions, arrangements or other acts or conduct that directly or indirectly undermines or frustrates the achievement of the objective(s) of the B-BBEE Act or the implementation of any of the provisions of the B-BBEE Act.

A natural or juristic person convicted of fronting practice(s) in terms of the B-BBEE Act may be liable to a fine of up to 10% annual turnover or a maximum prison of ten (10) years.  Further, any natural or juristic person convicted of an offence in terms of the B-BBEE Act may not for a period of 10 years from date of conviction, conducting business with any organ of the state or public entity and will be registered in a register of the tender defaulters with the National Treasury.

Any person can lodge a complaint with us by submitting a complete FORM B-BBEE 7 and state the nature of the complaint.

Specifically, a person is required to provide the following information on the Form:

1. a description of the conduct or practice alleged to be in contravention of the Act;
2. particulars of a person, sphere of government, entity or organ of state alleged to be in contravention with the Act;
3. name and contact details of any person that may provide information that is relevant to the complaint to the commission;
4. information on measure taken by the complainant to attempt to resolve the complaint, including alternatives dispute resolution measures, prior to lodging the complaint and
5. the way in which the alleged contravention may in the opinion of the complaint be addressed.

In submitting the form, the complainant is requested to attach any relevant information such as shareholder contract, B-BBEE Certificate and company registration certificate to assist us to better understand your complaint.

On receipt of the complaint, we will acknowledge and issue a case number to the complainant within five (5) days, we may request further information by issuing FORM B-BBEE 8, in terms of section 13L, a person may claim that all or part of that information is confidential and the claim must be supported by a written statement explaining why the information is confidential