Hansard: NCOP: Unrevised hansard
House: National Council of Provinces
Date of Meeting: 24 Mar 2022
Summary
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Minutes
UNREVISED HANSARD
NATIONAL COUNCIL OF PROVINCES
THURSDAY, 24 MARCH 2022
PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
Watch video here: PLENARY (VIRTUAL)
The Council met at 14:02.
The Chairperson took the Chair and requested members to observe a moment of silence for prayers or meditation.
The CHAIRPERSON OF THE NCOP: Hon delegates, please be reminded that the rules and processes apply for this virtual sitting. I would also like to remind you of the following. The virtual sitting constitutes a sitting of the National Council of Provinces. Delegates in this virtual sitting enjoys the same powers and privileges that apply in the sitting of the National Council of Provinces. The place of the sitting is deemed to be Cape Town, where the seats of the National Council of Provinces is. Delegates in the virtual sitting enjoy the same powers and privileges that apply in the sitting of the National Council of Provinces. For the purposes of the quorum, all the delegates are logged on to the virtual platform and shall be considered to be present. Delegates must always switch on their videos. Delegates should ensure that the microphones on their gadgets are muted and must always remain muted. The interpretation facility is active. Permanent delegates, members of the executive, special delegates and the SA Local Government Association, Salga, representatives are requested to ensure that the interpretation facility on their gadgets are properly activated to facilitate access to the interpretation services. Any delegate who wishes to speak must use the “raise your hand” icon. By now members are familiar with this function or
icon.
Hon delegates, we will now move on to motions. We will start with notices of motion without any delay. I now call on delegates to indicate if they want to put forward any notice of motion. I see three hands. I see Tim, Shaikh, Nchabeleng and Lehihi. We will start with Tim. Hon Tim?
NOTICES OF MOTIONS
Mr T J BRAUTESETH: Chairperson, I hereby give notice that at its next sitting I shall move on behalf of the DA:
That the Council debates the ongoing and persistent water crisis in the Ugu District Municipality of KwaZulu-Natal caused by the utter neglect of successive KwaZulu-Natal premiers-led cabinets which has now led to a disaster of catastrophic proportions with grave human rights implications. I thank you.
Ms S SHAIKH: Chairperson, I hereby give notice that at its next sitting I shall move on behalf of the ANC:
That the Council-
(1) debates the role of the Department of Home Affairs and the Department of Employment and Labour in converting the flair for violence similar to what happened in Robertson in the Western Cape.
(2) also debates the role of the alleged preference of foreign nationals over locals which had contributed to the violence.
Mr M E NCHABELENG: Chairperson, I hereby give notice that at its next sitting I shall move on behalf of the ANC:
That the Council –
(1) debates the role that is supposed to be played by the recognition of prior learning as a critical means of access to and the recognition of further and higher learning for students who did not hve the opportunity to access higher education postschooling via conventional pathways.
(2) also debates how South Africans who find themselves in jobs that offer no growth prospects owing to their lack of academic qualification can be assisted.
Ms S B LEHIHI: Chairperson, I hereby give notice that at its next sitting I shall move on behalf of the ANC: That the Council debates the poor distribution capacity of water in Maquassi Hills Local Municipality in North West province which has not demonstrated any improvement since the invocation of section 100 of the Constitution. I thank you.
DA’S CONCERN ON CLOSURE OF THABA CHWEU BOARDING SCHOOL
(Draft Resolution)
Ms H S BOSHOFF: I hereby move without notice on behalf of the
DA:
That the Council-
(1) notes with concern the closure of the Thaba Chweu Boarding School, where the learners did not return to school on the reopening of schools in January of this year;
(2) further notes that the school could not reopen due to lack of water;
(3) also notes that parents of the learners have to make alternate arrangements for their children who are at home without supervision, costing them an arm and a leg;
(4) notes that not only is the ANC government stealing hard earned taxes, but also stealing the future of these learners;
(5) also notes that no alternative measures have been put in place to assist these learners with online classes, which means that the learners have again lost out on valuable educational time and will never be able to catch up on this lost time;
(6) further notes that the Leader of Government Business in Mpumalanga has responded that the reason there is no water is due to the community stealing the water pumps, this whilst the school has 24/7 security;
(7) calls on the department to engage with the school governing body, SGB, school management team, SMT, and the security company to determine why there was no security when the pumps were stolen; and
(8) acknowledges that the national Department of Basic Education must engage with the provincial department of education to determine what the real reason is for the closure of the school is and ensure that the necessary steps are taken to get the learners back to school and give them the education they so rightfully deserve. Motion agreed to in accordance with section 65 of the Constitution
THE LATE DR PATRICK MAESELA
(Draft resolution)
The CHIEF WHIP OF THE NCOP: Hon Chairperson, I hereby move without notice: -
That the Council:
(1) Notes with profound sadness and grief the death of Dr Patrick Maesela who was laid to rest 11 March 2022;
(2) Dr Patrick Maesela was the first black person to beallowed to be a medical technician and in exile he did a junior degree in political science at Ebadan University in Nigeria, he then did his Masters followed by his PhD in Political Economy;
(3) Dr Patrick Maesela joined the ANC in 1964 and worked underground to mobilise students and youth from that time. His work led to the formation of Natal Youth Organisation, NAYO, a youth movement which was later expanded to NAYO and youth formations throughout the country. NAYO had tremendous influence in South African Student Movement, SASM;
(4) Dr Patrick Maesela was arrested together with the leadership of NAYO and released in 1976;
(5) In 2014, Dr Maesela was elected as the Member of Parliament until 2019. He served in the Portfolio Committee of Health and in 2018 he was delegated by the ANC to nominate President Cyril Matamela Ramaphosa to be the President of South Africa; and
(6) Takes this opportunity to convey its heartfelt condolences to his wife, 3 children, 7 grandchildren and 2 great grandchildren.
I so move!
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Motion agreed to in accordance with section 65 of the
Constitution.
CORRUPTION EXPOSED BY PUBLICATION OF REPORT IN EMFULENI
MUNICIPALITY
(Draft resolution)
Mr D R RYDER: Thank you very much Chairperson, on behalf of the
DA, I hereby move without notice:
That this Council-
(1) note the recent publication of a report on the Emfuleni
Municipality which exposes substantial corruption;
(2) also note that the Chief Financial Officer has been
placed on cautionary suspension as a result of the
report;
(3) further note that the CFO has fingered the MM and
alleged that politicians are also involved in the
corrupt activities;
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(4) note that the municipality has been under section 139
administration since 2017;
(5) note that much of the corrupt activity described in the
report took place or continued to take place while the
municipality was under administration;
(6) note that MEC Maile was chased from the Cogta committee
meeting of 19 June 2020 by the Chairperson with a
warning to return properly prepared. Hon Dodovu even
put out a press release in this regard. The MEC is
however yet to return;
(7) note that the lives of the people of Emfuleni have
worsened over the past five years, in spite of the
Administrative intervention by the Gauteng Province;
(8) calls on the Premier of Gauteng to give account to this
House or alternatively to admit defeat; and
(9) propose an invocation of section 139. 7 of the
Constitution to allow the national government to step
in where the Province has failed.
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I so move
Motion not agreed to.
WATER CRISIS IN UGU DISTRICT MUNICIPALITY
(Draft resolution)
Mr T J BRAUTESETH: Chairperson, on behalf of the DA, I hereby
move without notice:
That this Council: -
(1) notes with great concern the ongoing and persistent
water crisis in the Ugu District Municipality that has
plagued the area since 2015;
(2) notes that areas such as Ramsgate, Margate, Port
Shepstone, Hibberdene, Gamalakhe, Bhobhoyi, Nyandezulu,
Marburg, Umtentweni, Oslo Beach, Southport, Pumula,
Umzumbe, Fairview, Allerton store, Stickfarm and
Woodgrandge have been without water for between 14 days
and 8 weeks, the areas of Port Edward ... rest of
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Mhlavuna have only had 23 days of continuous water
supply in the last year;
(3) notes that it has been estimated that the UGU District
municipality requires R2 billion to effectively address
the ageing water infrastructure in the district.
Despite this, the budget for water reticulation has
been slashed by R84 million resulting in the
cancellation of water tanker contracts. At the same
time, the ANC caucus in Ugu demanded the completion of
the second phase of their offices, costing R32 million;
Disgraceful!
(4) Further notes that a recent inspection by the DA of the
water storage facilities in the district revealed that
these reservoirs were completely empty;
(5) also notes that this state of affairs is a gross
violation of Human Rights and that promises made by the
KZN Premier, who busies himself attacking the country’s
judiciary, have led to no action whatsoever;
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(6) notes that the DA intends opening a case with the Human
Rights Commission and will investigate the criminal
liability of Premier Zikalala himself.;
(7) repeats the call on the Minister of Cogta for a direct
Section 139 of the Constitution intervention into the
Ugu District Municipality in order to resolve water
service delivery, sanitation services and the
municipality’s finances.
Motion agreed to in accordance with section 65 of the
Constitution.
FAULTY TRAFFIC LIGHTS IN N12 AND SOWETO-LENASIA INTERSECTION
(Draft resolution)
Mr S F DU TOIT: Chairperson, on behalf of the FF Plus, I move
without notice:
That the Council-
(1)
notes that the matter regarding faulty traffic
lights at the N12 / R558 intersection
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(Soweto/Lenasia) was highlighted during a NCOP
Select Committee meeting on 7 September 2021;
(2)
(3)
further notes that MEC Faith Mazibuko confirmed that
the matter would be looked into and referred the
matter to MEC Jacob Mamabolo;
also notes that six months have lapsed and that the
infrastructure has still not been repaired posing a
life threatening situation, since it is on a
national road and in a high crime zone; and
(4)
calls on the relevant departments to urgently
address the matter.
Motion agreed to in accordance with section 65 of the
Constitution.
THE LATE SHEIKH ABDUL HAMIET GABIER
(Draft resolution)
Mr M DANGOR: Chairperson, I hereby on behalf of the ANC move
without notice:
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That the Council-
(1) notes that the life President of the Muslim Judicial
Council (MJC), 86-year-olds, Sheikh Abdul Hamiet
Gabier died in the early hours of yesterday morning
after suffering poor health;
(2) further notes that during his time as Imam in
Kensington he was at the forefront in the struggle
against apartheid and had to live in exile in Canada
where he continued with his activism;
(3) also notes that Sheikh Gabier played a pivotal role in
the establishment of the United Democratic Front, UDF,
and was a stalwart of the ANC who also served as South
African Ambassador to Saudi Arabia; and
(4) sends our heartfelt condolences to his family and the
Muslim Community at this time of bereavement.
Motion agreed to in accordance with section 65 of the
Constitution.
MURDERER AND RAPIST REVTICKEN MULLER SENTENCED TO LIFE
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(Draft resolution)
Ms M N GILLION: Chairperson, I hereby move without notice on
behalf of the African National Congress:
That the Council-
(1)
notes with appreciation that murderer and rapist,
Revticken Muller, described as a skilled, devious,
and cunning liar, will spend his life behind bars
after he was sentenced in the George Magistrate’s
Court yesterday;
(2)
further note that Muller was convicted of the rape
and murder of Bianca Matroos in November 2019 and
was sentenced to life imprisonment for murder and
further 10 years for rape;
(3)
Also note that note that the accused met the
deceased in a nightclub, and raped and killed her a
few hours later; and
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(4)
therefore, congratulate the Police and the NPA for a
job well done and hope that the family of the
deceased will at least find closure.
I so move.
Motion agreed to in accordance with section 65 of the
Constitution.
DISTRICT SIX LAND CLAIMANTS EXPECTED TO FINALLY RETURN HOME
(Draft Resolution)
Ms M BARTLETT: I hereby move without notice on behalf of the
ANC:
That the Council -
1) notes that about 108 District Six land claimants are
expected to finally return home in about two weeks’
time after more than two decades of waiting;
2) further notes that this is part of phase three of the
District Six Development Project with construction of
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the remaining 954 units to be carried out in two major
phases to be completed in 2025;
3) also note that Deputy President Mabuza, in his capacity
as the Chairperson of the Interministerial Committee on
Land Reform and Agriculture visited the area in order
to assess progress;
4) congratulates the beneficiaries of this project; and
5) calls upon the Department of Agriculture, Land Reform
and Rural Development to make sure that the rest of
claimants get their houses as promised.
Agreed to.
EFF HELD SUCCESSFUL EVENTS ON 21 MARCH 2022
(Draft Resolution)
Mr M S MOLETSANE: I hereby move without notice on behalf of
the EFF:
That the Council -
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1) notes that the EFF held a series of successful events
on 21 March 2022, commemorating the Sharpeville
massacre;
2) further notes that the massacre which took place in
Sharpeville, Langa and Uitenhage were not isolated
events but were responses carried out by a racist group
of people who would do anything to entrench the
dehumanization of black people;
3) acknowledges that the EFF held three rallies to observe
and honour the bravery and wisdom of Robert Sobukwe and
Philip Kgosana who led the march in Langa, and that of
Nyakane Tsolo who led the march in Sharpeville;
4) further acknowledges that we observed and honoured
those who lost their lives during the Sharpeville,
Langa and Uitenhage massacres at the hands of the
brutal apartheid regime;
5) recognises that their commitments to the liberation of
our people should inspire all of us to continue to
fight for the total emancipation of our people as the
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struggle for emancipation of the African people has not
yet been won;
6) takes this opportunity to thank the people and ground
forces of Moqhaka municipality for making the event of
21 March a success; and
7) thanks the community of Matlwangtlwang in Steynsrus for
coming out in their numbers to commemorate with us.
Agreed to.
SPECIAL INVESTIGATING UNIT HAILED
(Draft Resolution)
Ms L C BEBEE: I hereby move without notice on behalf of the
ANC:
That the Council -
1)
notes with pride the continued successful headway made
by the Special Investigating Unit, SIU, in recovering
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public funds acquired through unlawful and corrupt
transactions;
2)
believes that the bid by the SIU to freeze the bank
accounts of suspicious beneficiaries of corrupt and
unlawful transactions is a step in the direction
towards successful criminal prosecution; and
3)
calls upon this august House to salute the leadership
of the SIU and its staff for their courageous acts of
leaving no stone unturned in recovering public funds
lost through unlawful and corrupt transactions.
Agreed to.
THE PROLIFERATION OF GUN-RELATED MURDERS IN CAPE TOWN
TOWNSHIPS
(Draft Resolution)
Ms N E NKOSI: I hereby move without notice on behalf of the
ANC:
That the Council -
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1) notes with concern the alarming proliferation of gun-
related murders in the townships of Cape Town over
the recent past;
2) further notes that these gun-related murders
demonstrate the massive circulation of illegal fire
arms in the hands of criminal syndicates and
gangsters;
3) believes that the persistence of this trend
undermines and erode the confidence of the law-
abiding citizens and our law enforcement agencies;
4) further believes that the confidence of the law-
abiding citizens, the police and the collaboration
between the police and communities are critical in
the fight against crime; and
5) calls upon the Minister of Police and the Member of
the Executive Council responsible for policing in the
Western Cape government to appear before this august
House to outline concrete steps against gun-related
murders and other forms of violent crimes.
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I so move.
The CHAIRPERSON OF THE NCOP: Thank you very much. Any
objection to the motion?
Mr J J LONDT: Yes, there is an objection. It should be the
national Minister who gives resources.
The CHAIRPERSON OF THE NCOP: Is there an objection to the
motion? None. There being ... [Interjections.]
Mr M NHANHA: Chairperson, hon Londt made an objection. You
could not have missed him.
Mr J J LONDT: Yes, it was selective hearing from the
Chairperson. The national Minister of Police should give the
resources. Call him to account, therefore the objection. You
must the rules of where the money comes from.
The CHAIRPERSON OF THE NCOP: There being an objection, the
motion may not be proceeded with and will now become a notice
of a motion.
60TH SESSION OF THE OACPS PARLIAMENTARY ASSEMBLY
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(Draft Resolution)
Mr M I RAYI: I hereby move without notice on behalf of the
ANC:
That the Council -
1) notes that the Organisation of African, Caribbean and
Pacific States, OACPS, will host the 60th Session of
the OACPS Parliamentary Assembly from 29 to 31 March
2022, and the meeting will be followed by the 41st
Session of the ACP-EU Joint Parliamentary Assembly,
JPA, from 1st to 3rd April 2022;
2) further notes that the meetings which will be held in
Strasbourg, in France, will be the first in-person
contact sessions of the assemblies since the outbreak
of the COVID-19 pandemic in 2020;
3) also notes that the 41st session of the JPA is of
particular importance as it will be the last JPA under
the Cotonou Partnership Agreement;
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4) also notes that during the session, which will take
place from 29 to 31 March 2022, OACPS parliamentarians
will exchange views on current global issues of
interest to the OACPS, including matters concerning the
political affairs, economic development, finance and
trade, and social affairs and the environment; and
5) takes this opportunity to wish the South African
delegation well as they prepare to represent our
Parliament in these very crucial events.
Agreed to.
LOCUST OUTBREAK DAMAGES NORTHERN CAPE
(Draft Resolution)
Mr W A S AUCAMP: I hereby move without notice on behalf of the
DA:
That the Council -
1) notes with sorrow the damaged caused by the locust
outbreak in vast parts of the Northern Cape where
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hundreds of thousands of hectares of grazing have been
destroyed due to this locust outbreak;
2) expresses our gratitude towards the various civilian
organisations as well as to the large number of
individual farmers and private companies who unselfishly
made finances, as well as their personal equipment and
vehicles available in order to try to contain the spread
of this locust outbreak;
3) acknowledges the fact that due to this locust outbreak,
vast amounts of grazing were destroyed, and that there
now is an urgent need for fodder to be made available to
those farmers who lost grazing due to this locust
outbreak;
4) requests Premier of the Northern Cape to declare the
areas affected by these locust outbreaks as disaster
areas in order for more funding to be made available to
fight the further spread of this outbreak, as well as to
assist those farmers who have been negatively affected
by this outbreak; and
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5) calls upon the MEC for Cogta, or the Premier of the
Northern Cape immediately approve the provision of
fodder from the fodder banks in the Northern Cape to the
affected farmers, as well as to make additional funding
available in order to assist these farmers to obtain
sufficient fodder for their animals.
The CHAIRPERSON OF THE NCOP: There is an objection. Therefore,
the motion ... [Interjections.]
Mr W A S AUCAMP: Hon Masondo, it is fascinating now that you
can hear that objection.
The CHAIRPERSON OF THE NCOP: ... without notice will become a
notice of a motion.
An HON MEMBER: How can you object to the farmers that feeds
us? Incredible. It is astonishing.
DEBATE ON THE RELEVANCE AND SUCCESS OF BROAD-BASED BLACK
ECONOMIC EMPOWERMENT AND EMPLOYMENT EQUITY LEGISLATION
(Subject for Discussion)
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Mr S F DU TOIT: Hon Chairperson, is broad-based black economic
empowerment and equity legislation still relevant after almost
three decades of ANC rule and did it yield the results that
the ANC hoped it would? Did affirmative action provide any
economic stability in the country and who benefited from it?
Did South Africa as a whole benefit from the race-based job
reservation legislation?
Mr Ramaphosa, during his human rights speech on 21 March 2022,
mentioned that South Africa is the most unequal country in the
world. He placed the responsibility on normal citizens to be
whistle blowers on corruption in his government and focused
his address on racial conflict and the death of 69 people in
1960 in Sharpeville, conveniently neglecting to mention the
354 people that died in South Africa, during July 2021, under
ANC rule.
It needs to be mentioned that Mr Ramaphosa and the Cabinet
took full responsibility for these deaths during his Sona 2022
speech. Yet, we have, to date, not seen any consequences as a
result of these deaths. Why am I mentioning this fact? I want
to illustrate that selective racial classification by the
majority is being used to their benefit, when it suites them.
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Since 1994, BEE has been government policy.
Afrikaans:
Die Vryheidsfront Plus het onsself sedert 1994 sterk teen
regstellende aksie en swart ekonomiese bemagting uitgespreek,
weens die feit dat dit nie gelyke geleenthede aan alle Suid-
Afrikaners bied nie, kundigheid in die proses verlore gaan en
individue en groeperinge ge-etiketeer, en dat daar deur
hierdie wetgewing teen hul gediskrimmineer word.
Miljoene Suid-Afrikaners van verskillende rasse leef en werk
op ’n daaglikse basis in vrede saam. Die gemiddelde Suid-
Afrikaner, ongeag ras of geslag, streef na gelyke regte,
gelyke behandeling, gelyke geleentheenthede en om in vrede met
sy medemens te leef.
Die ANC en ander partye, het egter in hul strewe na oorlewing
en behoud, gebruik gemaak van rasgedrewe wetgewing. Daar is
egter van die oposisie wat hierdie wetgewing ondersteun het,
wat nou ’n ander deuntjie begin sing en voorgee asof hul dit
verag.
Daar is bewyse dat die bekragtiging van hierdie wetgewing,
generasies wat volg gaan verhoed om op ‘n gelyke basis vir
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werksgeleenthede in Suid-Afrika te kompeteer. Dit gaan weer
verhoed dat hierdie mense hul gesinne tot die beste van hul
vermoë kan ondersteun en ‘n optimale positiewe bydrae tot die
ekonomie lewer.
Hierdie rasgedrewe wetgewing, het selfverryking vir sommiges
en verarming van die staat, agteruitgang van die land en
verryking van politiesgekoppelde individue teweeg gebring.
Hierdie wetgewing is swart ekonomiese bemagtiging en
regstellende aksie.
English:
William Gumede, an associate professor at the School of
Governance at the University of the Witwatersrand, wrote the
following in 2017, and I quote:
Genuinely disadvantaged black South Africans, whether out of
naivety, lack of knowledge or simply being unaware of the
selfish motives of individuals, using calls for radical
economic transformation, economic freedom and economic
decolonisation for their own benefits, in many cases fall for
such false promoters of black advancement. The real danger is
that these redistribution terms will not only become empty,
meaningless and opportunistic, but will become associated with
mismanagement, corruption and state capture.
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This means that genuine initiatives to pursue economic
transformation, economic freedom and economic decolonisation,
so crucial to improve the lives of ordinary black South
Africans for the better, will lose credibility. The first is
to scrap the current BEE policies as, singularly useless to
historically disadvantaged black children, on par with the
world-class education, offered in the best industrial
countries or emerging markets.
It is estimated that so-called BEE transactions, aiming to
increase black ownership of large businesses have been
conducted on such a large scale, with BEE transactions
concluded between 1994 and 2005, valued at between R150
billion and R285 billion. BEE enrichment. Selected few. The
reality is that there are only a selected few well-known
individuals who benefited from BEE.
The economist, Moeletsi Mbeki, said at a Daily Maveric
webinar, in August 2020, that the first beneficiaries selected
to get shares in the first BEE company in South Africa, the
New African Investment Limited, were antiapartheid leaders,
ie, politically connected individuals. I quote:
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As a result, Mbeki believes BEE was never intended as a tool
of social upliftment or economic empowerment; it was simply a
way for establishing big business, to win favour with the
incoming political leadership and influence the policies of
the democratic government. Then ‘this virus’, as Mbeki terms
BEE, became state policy. Leaders of the ANC and the United
Democratic Front from the 1990s, 1980s and 1970s are the black
billionaires that you see today.
I can’t put it better than Mr Mbeki when he, as an economist,
said that the fact that unemployment in South Africa has been
growing steadily since 2008, while BEE in its legislated form
has been around since 2003 showed that the policies could not
be a solution to the country’s economic problems. Mbeki
believes that fostering entrepreneurship is the best answer to
South Africa’s growth problem, because, as Mahlaka pointed
out, everyone has an equal shot to become an entrepreneur in
the first place. With South Africa’s levels of poverty and
inequality, which are felt particularly in areas like
education, that is clearly not the case. Yet, Mbeki maintains
that the only preferential policies should be those which give
priority to South Africans with good ideas.
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The preamble of the Constitution states among others the
following: “To improve the quality of life of all citizens and
free the potential of each person.” The founding provisions in
Chapter 1 of the Constitution states that the Republic of
South Africa is one, sovereign, democratic state founded on
nonracialism and nonsexism.
It further states on citizenship that there is a common South
African citizenship. All citizens are equally entitled to the
rights, privileges and benefits of citizenship and must be
equally subjected to the duties and responsibilities of
citizenship. The Bill of Rights states that everyone is equal
before the law.
Afrikaans:
Swart ekonomiese bemagtiging en regstellende aksie bemagtig
niemand nie, maar werk eerder ontmagtiging in die hand. Die
absurditeit is dat die meerderheid diskriminasie kan
regverdig, deur dit in somige gevalle as reverdige
diskriminasie te omskryf en toepas, is onaanaarbaar.
Was dit werklik die bedoeling van die Grondwetskrywers om
bloot nuwe vorme van diskrimminasie en uitsluiting te skep?
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Dit is ’n bewese feit dat werkloosheid die hoogste ooit in
Suid-Afrika is.
Werkloosheid het in Suid-Afrika toegeneem onder die ANC-
regering. Hoeveel meer bewyse is nodig om te toon dat die
huidige radikale, transformerende, rasbehepte, uitsluitende,
dog selektief-bevoordelende wetgewing, nie in die belang van
Suid-Afrika en alle Suid-Afrikaners is nie!
English:
The ruling party is constantly referring to the recent World
Bank report that indicated that South Africa is the most
unequal country in the world, the World’s Global Poverty
database. Mention of this report is made with the intention to
create greater social divide, hide the shortcomings and
corruption of the ruling party and motivate the implementation
of harsher race-based legislation.
What the ruling party does not do, is the following: They do
not mention the astronomic population growth in South Africa
between 1993 to 2019. Black South Africans increased from
23,06 million to 47,45 million, coloureds increased from 3,4
million to 5,08 million, Indians from 1,022 million to 1,45
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million and the white South Africans population decreased from
5,1 million to 4,4 million people.
If the number of black South Africans doubled in 26 years, it
is obvious that there would be more unemployment without
economic growth, because of government policies.
Afrikaans:
Wat die ANC ook nalaat om te noem is dat die Internasionale
Monitêre Fonds, IMF, in hul Desember 2021 verslag, sy stem
teenoor die regering dik gemaak het. Hulle het genoem dat
beperkende arbeidswetgewing verslap moet word, in kort, sien
die internasionale gemeenskap raak dat hierdie onregverdige
wetgewing nie ekonomiese stabiliteit bevorder nie.
Waarom vind die regering dit nodig om Suid-Afrikaners te
mislei oor die bevindings van die IMF? Die IMF dui juis aan
dat die ongelykheid wat tans heers, ’n direkte gevolg van ANC-
beleid is.
Die groot probleem met swart ekonomiese beagtiging en
regstellende aksie, buiten die feit dat daar teen individue op
grond van ras gediskrimmineer word, is die feit dat
aanstellings in die meeste gevalle slegs op ras gegrond is, en
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nie op kundigheid het! Hierdie benadering ontneem nie net
ander geskikte bruin, wit of Indiër kandidate om die
betrekkings te kry nie, maar ook moontlik meer geskikte swart
candidate, wat oor beter kwalifikasies as die wat aangestel
word kan beskik, aangesien meriete in die meeste gevalle glad
nie ’n rol speel nie.
English:
This is one of the major reasons that state institutions and
government is failing. Race-based quotas were filled, just to
fill them. Skills and qualification were not the determining
factor in most instances! As a result of this, appointees are
being labelled and their capabilities are being questioned.
Are they employed because they are qualified to do the work,
or because they fit the quota?
Afrikaans:
Eskom ondervind steeds ’n vaardigheidstekort, nadat
aggressiewe, rasgedrewe wetgewing in die instelling
plaasgevind het.
English:
Eskoms COO, Jan Oberholzer, recently said that, he was, and I
quote, “absolutely horrified” by the number of experienced
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staff lost at Koeberg nuclear power station. Eskom engineers
and technical staff are leaving the power utility because of
affirmative action, a lack of career prospects, cadre
deployment and a toxic work environment, as indicated by
Mybroadband. They went further, and said: ...
Afrikaans:
... “In die afgelope jaar het sowat 12 000 van Eskom se
arbeidsmag bedank.”
Dit is sowat 4% van die arbeidsmag. Dit sluit personeel uit
wat die vorige jare hul bedanking ingedien het of vriendelike
versoek was om die tuig neer te lê. Hierdie sluit ingineurs,
ambagslui en vakmanne in. Heelwat van hierdie vakmanne word
aantreklike poste in die buiteland aangebied met
bevorderingsmoontlikhede, bevordering wat onder huidige
wetgewing in Suid-Afrika nie sommer sal plaasvind nie,
aangesien hul wit is en mans is.
English:
In 2008, the trade union, Solidarity indicated that at least
346 engineers and artisans left Eskom in 12 months. Instead of
retaining critical skills and training new artisans, in 2015,
Eskom was apparently planning to reduce its white workforce,
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letting white managers and engineers go, to comply with South
Africa’s Employment Equity Act.
Afrikaans:
So onlangs as 2019 was nog ’n plan om aflegging van wit
bekwame werknemers by Eskom ter tafel gelê.
English:
As per Solidarity: “Eskom’s recruitment policy, promotion
policy, employment equity targets and affirmative action
appointments and procurement policy have made the environment
in Eskom impossible for white engineers and artisans to get
promotions and excel in their careers.” Affirmative action and
BEE put South Africa back in the dark ages.
We look at Agriparks that were established over the country –
initiatives to assist and empower mainly black communities and
black farmers. Agriparks are said to be assisted by government
for up to 10 years, to ensure economic sustainability. The
majority of these parks are unsuccessful. Nonblack people with
a passion for farming and entrepreneurial skills are being
discriminated against, deprived of a future and labelled as
nonsuitable candidates. Even with youth employment initiatives
like, Yes for Youth, it is advertised that everyone can apply,
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but the small print has it that only Africans, in particular,
will be assisted and processed.
Afrikaans:
Die hartseer is dat jong leerders se toekomsplanne deur die
regering op die basis van ras beinvloed word. Diskriminasie
geskied openlik by universiteite, veral met toegangsbeleide.
Daar is heelwat bewyse dat verskeie van die grootste en
bekendste universiteite blatant teen studente gediskrimineer
het tot en met 2016.
Punte in universiteitsbeleide wat wel genoem word is onder
andere die volgende.
Eerstens, die erkenning in die inleiding van die Grondwet dat
daar voorheen diskriminasie was en dat dit reggestel moet word
en dat die universiteit dit onderskryf.
Tweedens, die erkenning van voorheen benadeelde groepe, wat ‘n
huidige diskriminasie om die saak reg te stel, regverdig.
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Derdens, daar word genoem dat ras as kriteria gebruik word
enander faktore wat genoem word is kultuur, geografiese
ligging, taal, ensovoorts.
Verder, die meeste van die universiteite doen hul toelatings
volgens ‘n puntestelsel waarin potensiële studente punte kry
volgens die bogenoemde kriteria.
Dit is duidelik om af te lei dat wit studente die minste punte
sal kry.
English:
The governing party is frequently quoting Martin Luther King.
This quote is a comment from his famous letter from Birmingham
jail.
One has not only a legal but moral responsibility to obey juts
laws. Conversely, one has a moral responsibility to disobey
unjust laws.
Afrikaans:
Huidige arbeidswetgewing en swart ekonomiese beleide is
ongetwyfeld onbillik en diskriminerend en daar behoort geen
twyfel te wees dat wetgewing wat slegs wit mense bevoordeel,
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as onbillik en diskriminerend beskou sou word nie. Huidige
rasgebaseerde wetgewing in Suid-Afrika moet tot niet gemaak
word. Dit is nie ’n boublok van die land nie, maar is eerder
dryfsand van misleiding en ondergang. Dankie.
The DEPUTY MINISTER OF TRADE, INDUSTRY AND ECONOMIC
DEVELOPMENT: Chairperson of the NCOP, hon Amos Masondo, Deputy
Ministers, MECs, hon members, good afternoon. According to the
latest figures from the World Inequality Database, South
Africa is the most unequal country in the world, ranking first
among 164 countries in the World Bank’s global poverty
database.
In our country, the richest 10% of the population own more
than 85% of household wealth. In our country, one white male
CEO earns the equivalent of 461 African women in the lowest of
wages. In this country, the top 0,1% of the population own 25%
of our entire country’s wealth. These statistics, at least in
part, explain why the South African economy has not grown as
fast as we need because highly unequal economies have been
shown, including by the World Bank, to grow more slowly than
more equitable economies. But for South Africa, this high
level of inequality has a clear racial dimension. Black South
Africans continue to bear the brunt of unemployment, low
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wages, lack of access to high quality education, lack of
access to markets and lack of access to finance to start a
business.
The report shows that lack of access to key productive assets
such as skills, land and capital is holding back our progress
as a nation towards a more equitable income distribution and
higher economic growth. It acknowledges something we all know,
namely, that the legacy of colonialism and apartheid rooted in
racial segregation and spatial segregation continues to
reinforce inequality of incomes. This is why a call to burn
BBBEE is not just unhelpful from the perspective of needing to
redress the damage of apartheid, it is also unhelpful if our
objective as a nation is to grow our economy faster, lift
people out of poverty and give our people a better life for
all.
This acknowledgement is in our Constitution and it has been
supported in multiple elections when millions of South
Africans cast their democratic vote in support of the
manifesto of the ANC. Section 217 of the Bill of Rights
promotes an economy that can meet the needs of all its
economic and social citizens through the development and
creation of economic activity, job creations, skills
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development and new enterprises in a sustainable manner. This
will only be possible if the South African economy builds on
the full potential of all persons and communities across the
length and breadth of our country.
Our main role as government in regard to BBBEE implementation
is to create a conducive environment through the development
of legislation and policies in consultation with social
partners. Guidelines on how to implement are embedded in the
codes of good practice that introduce measurements principles
based on best practice. For its part, government has created
the correct platform by identifying and implementing local
content procurement and supplier development targets as a
focus area within the BBBEE codes as well as the black
Industrialist Policy Framework.
Social partners should embrace and implement BBBEE as well as
ensure that there is monitoring, reporting and accountability.
Although we still have a lot to do as government and social
partners, there are some achievements that we can highlight
and some of these are the following.
From 2003 when the BBBEE Act was first promulgated to 2013
which marked the 10 years of BBBEE policy implementation,
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there were some significant achievements. Six hundred billion
worth of BEE transactions, 500 publicly announced BBBEE
ownership transactions worth at least R533 billion.
Representation of black people and women in senior management
positions in the private sector had increased from less than
10% in the 1990s to more than 40% in 2013. The National
Empowerment Fund had approved transactions worth more than
R5 billion with 60% of its beneficiaries being small, medium
and micro enterprises, SMMEs, and support given to creation of
44 000 jobs.
According to the value of BEE deals report published by
Intellidex in June 2015 BBBEE deals by the JSE hundred largest
companies, since, 2000 have generated R317 billion in total
value, attributable to beneficiaries as at 31 December 2014.
Of this amount, R52 billion, that is 16%, is attributable to
staff schemes, R196 billion, which is 62%, to strategic
investment partners and R59 billion, which is 22%, to broad
based community schemes which have featured in several
financial sector ownership schemes deals.
The BEE Commission came into operation in 2016. One of the key
functions of the BBBEE Commission is to measure BBBEE
performance in the economy. Since 2015 to 2020 the following
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observations have been made in respect of the state of
transformation in South Africa. Firstly, there is a 0,86%
reduction in the number of entities that have attained broad
based economic empowerment level one to four from the prior
year. Secondly, the number of entities that are between level
five and non-compliant have reduced by 23,38%. Thirdly, the
unaccounted difference between the movement in the entities
that are between level one to four and level five to non-
compliant could be a result of the reduced number of BBBEE
certificates loaded on the BBBEE Commission’s portal.
The black ownership has increased by 4,66% with the opposite
increase in the black women ownership which has decreased by
0,66%. Broad based ownership schemes and employee ownership
programmes are some of the widely recognised forms of
ownership by broad based group members in corporate South
Africa.
This, hon Chairperson, allows such businesses to diverse
equity rights to its key stakeholders such as workers and the
surrounding communities. The footprint of the impact of such a
collective scheme ownership transaction spread larger than a
traditional equity partner route. It is important to note that
the impact of such structures have benefited many black
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beneficiaries in terms of access to the economy while
simultaneously increasing the black ownership profile of the
South African businesses landscape. This is evidenced by the
most recent report on major transactions by the BBBEE
Commission authored in March 2020.
Available data on Broad-Based Ownership Schemes, B-BOS,
especially Employee Share Ownership Plans, ESOPs, indicates in
excess of R100 billion been transferred to employee owners,
the number of which totals 220 000. Notably, employee share
ownership programme schemes include AB InBev R5,4 billion in
value accrued into 6 780 workers, Pepsi Co to R1,6 billion in
value accrued into 12 400 workers, FirstRand R6,5 billion in
value accrued into 4 485 workers, Tiger Brands R1,1 billion in
value accrued into 815 workers, Standard Bank R401 billion in
value accrued into 586 workers.
One of our key programmes under the BBBEE Policy Framework is
the Black Industrialist Programme which is the programme that
was designed to address transformation of the manufacturing
sector whilst also ensuring that we broaden our industrial
base as a country. Therefore, the uniqueness of the BI
Programme is that it targets black owned entities so that we
build a class of black entrepreneurs that own, manage and
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actively control enterprises in the productive sectors of the
economy. This is in recognition of the fact that, for many
years in this country, black people were not given an
opportunity to fully participate in the mainstream economy.
The year 2021 marked the fifth year since the programme was
launched and we released the first Annual Black Industrialist
Report. The following achievements were highlighted in the
report. Some R32 billion has been invested through funding
initiatives within the Department of Trade, Industry and
Competition in nearly 800 black industrialist businesses and
black entrepreneurs. This funding has supported the creation
of new and dynamic enterprises in a number of critical value
chains across all nine provinces, crowding in additional
investment from the private sector as well as creating and
saving nearly 120 000 jobs.
Over the next five years, social partners will seek to invest
in new industries which can build local industrial capacity by
up to R200 billion annually by the end of the year. The target
of the R200 billion, if fully achieved, can add an additional
4% to annual gross domestic product, GDP, and will further
create opportunities for South African manufactures, including
small and medium businesses and industrial firms owned and
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controlled by black South Africans to grow their businesses
and create jobs.
Multinational companies that cannot sell their equity to black
South Africans and have never sold equity outside their
country of origin, are allowed to make a contribution towards
Equity Equivalent Investment Programme, EEIP, in return to be
awarded full BBBEE ownership points for an agreed period of
time based on the investment amount.
The value of the EEIP contribution maybe measured against 25%
of the business value of the South African operation or
against 4% of the total revenue from its South African
operations annually over a period of the continued
measurement.
These investments are focused on enterprise and supplier
development, critical skills development and research and
development. The beneficiaries of the programme are black
South Africans and black-owned South African companies. To
date, 22 multinational companies across different sectors have
been granted final approval to participate in the Equity
Equivalent Investment Programme. Of the approved number, 32%
is automotive industry, 27% ICT sector, 18% manufacturing and
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23% is split between construction, health care, maritime,
financial and agricultural sectors with total investment of
more than R8 billion.
More than 2 000 jobs, both direct and indirect, have been
created since inception of the programme and supported 87
emerging black-owned businesses, including black women and
youth-owned businesses. Information and Communications
Technology, ICT, critical skills have been offered to youth
and opportunities have been created for students to access
tertiary education to acquire skills, in particular, ICT
related scarce skills.
The NEF was created specifically to fund BBBEE initiatives.
The following is the highlight of what the NEF has done. Since
inception, the NEF has approved a total of 1 233 transactions
which are worth R11,9 billion, with a total project value of
R20,37 billion. As a result of these approvals, the NEF
managed to disburse a total of R7,7 billion, creating and
sustaining in excess of 107 788 jobs, 71 of which were new
jobs.
As I conclude, hon Chairperson, I would like to thank the NCOP
for giving us this opportunity and let us work together to
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reduce inequalities per race, gender and geographics spread. I
thank you, hon Chairperson of the NCOP.
Mr M MVOKO (Eastern Cape): Chairperson of the NCOP, hon
members of the NCOP, political parties present, senior
government officials, esteemed guests, ladies and gentlemen,
good afternoon.
Let me first, on behalf of the Eastern Cape government,
appreciate the opportunity that we have been given to partake
in today’s debate on the relevance and success of Broad-Based
Black Economic Empowerment, BBBEE, and employment equity
legislation.
Hon Chair, the BBBEE policy and legislation remain the
relevant documents that guide the implementation by provinces
and state-owned entities in supporting the objectives of
transformation.
Our comprehension of BBBEE is that it is an integrated and
coherent socioeconomic process that aims to create sustainable
growth and prosperity by ensuring expanded and meaningful
involvement in the economy by individuals who have experienced
previous injustices.
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Our support of this policy is, therefore, based on its aims
and objectives, that of promoting economic transformation in
order to enable meaningful participation of black people into
the mainstream economy of our country, given the history of
South Africa.
Enabling participation of black people in the mainstream
economy requires a focused intervention and a national effort
by all stakeholders including government, labour, business and
civil society.
Hon members, much of the discussion about BBBEE is on whether
it is still relevant and if it has met its declared
objectives? The quick answer is that BBBEE is now more
important than ever.
According to the World Bank analysis, as many people have
indicated in this platform, South Africa is the world’s most
unequal country ranking number one out of 164 in the World
Bank’s global poverty database.
Hon Chair, although we must acknowledge that it is a sound
policy designed to successfully promote much needed
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transition, there have been implementation flaws that have
been detected in the process.
In terms of ownership and management, BBBEE has not made much
progress even though many businesses claim to have employment
equity policies that they seemingly follow, this is not the
case.
The Broad-Based Black Economic Empowerment Commission’s report
on the national status and trends on BBBEE for 2019 showed a
slight change in the levels of transformation with the overall
black ownership reflecting a 4% increase to 29%. Management
control was at 39% overall and among Johannesburg Stock
Exchange, JSE, listed entities, board control is at 43,6%.
Only 3,3% of entities listed on the JSE are 100% black-owned,
which is an improvement on the 1,2% reported in 2018 and the
1% in 2017.
These numbers and/or statistics are far low when considering
what the BBBEE policy intends to achieve. In light of that,
regarding to access to state-related procurement contracts, a
lot more is needed to support the targeted entities to ensure
that their bids are packaged in a manner that stands them a
chance to win the bid.
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Given the complexity required to ensure that from a state
perspective all administrative processes will pass the master
of vigorous audits and ensure compliance, we have noted in
some of the work done by entities under our authority such as
the special economic zones, Coega Development Corporation,
CDC, and the East London Industrial Development Zone, ELIDZ,
that in the construction bids there is a number of
administrative errors made by these entities in their bid
submissions, which show weaknesses or lack of knowledge or
skill required to understand the requirements of the bid and
respond accordingly.
There is a huge difference between the quality of bids
submitted by well-established entities and small and emerging
ones.
Without seeing to argue that black-owned entities are the only
ones who are SOEs, in the main we do find that they are mainly
in the Small, Medium and Micro Enterprise, SMME, category.
Out of the total procurement preference points that are used
to determine the lowest acceptable tender, only 10% for 90/10
and 20% for 80/20 preference points system is allocated for
BBBEE. This, therefore, means that even if the entity comes
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from targeted group as defined by the BBBEE Act, they are not
guaranteed award unless their bid was also the lowest in terms
of pricing; which is not a frequent case.
Noting that there is a current uncertainty with how better
targeted methods can be looked at following the recent
judgement of the Constitutional Court on the issue of the
procurement regulations, it is quite clear that a lot of work
will have to be done with respect to state procurement to
advance further the objectives of BBBEE.
One of the critical issues that is emerging for a rural
province like ours, which, historically, say for the
industrial centres of Nelson Mandela Bay and Buffalo City, is
a need to look at more innovative ways of getting
participation of the targeted groups in the economy beyond the
issue of state contracts, which, admittedly, do play their
role. And as the province there are critical interventions
that we are looking at, but saving time, I will not dwell on
them now.
Hon members, the 20th annual Commission on Employment Equity
report revealed that white men still dominate senior
management levels, with their representation being far above
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their share of the economically active population. Black
representation at this level has actually decreased over the
years since 2001.
Although moderate, there have been pockets of improvement in
representation in both the public and private sectors.
There is a more balanced representation in terms of
demographic representation in the public sector and progress
is being made towards accomplishing equitable levels for
women.
Disability representation in both the private and public
sectors remains a matter of concern. Since introducing the
principle of equal pay for equal work for equal value, it has
become much easier for vulnerable groups to report instances
of unfair discrimination and pay disparities in the workplace.
It is also very encouraging to see that the Labour Court and
Commission for Conciliation, Mediation and Arbitration, CCMA,
have played their part in ensuring that these cases receive
the attention they deserve.
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In our context we believe that more effort needs to still be
placed around the issue of the advancement of women especially
in traditionally male-dominated sectors.
Hon Chairperson, through the implementation of the current
policies, we have made a lot of progress to support our SMMEs
to grow the economy. In transforming the environment within
which SMMEs operate, more so in access to funding, we are
implementing the Local and Regional Development Fund. The
purpose of the fund is to provide the grant-funding to
enterprises which are not able to access funding from the
commercial banks and other developmental funding institutions
to start up enterprises or expand existing ones.
Under the broad banner of BBBEE, the Department of Energy’s
Independent Power Producers, IPP, office set its procurement
rules for the first four rounds of wind and solar power
purchase agreements at a special ratio of 70/30. This means
that wind and solar farms were scored and awarded contracts
based 70% on price and 30% on economic development
commitments. These have included scores for job creation,
local content, local ownership, socioeconomic development,
preferential procurement, management control and enterprise
development.
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An outcome of this is that the 16 wind farms and one solar
farm that have been constructed to date have already spent
R90 million to date on enterprise development initiatives in
their local communities. They’ve also spent R330 million to
date on socioeconomic development initiatives in their local
communities. They’ve also achieved 45% of South Africa’s local
content and 9 517 jobs to date. These figures are also
indicative in our province as we have quite a large number of
these Independent Power Producers.
As I conclude, hon Chairperson, I believe that both employment
equity and BBBEE were meant and continue to undo the
injustices of the past and get the disadvantaged groups to
participate and be represented in the economy. These tools
have somewhat made a difference, however, there is still a lot
to do to achieve the transformational agenda. With many
businesses regarding it as little more than a matter of
compliance, economic change on the other hand is a moral and
social concern.
We trust that under President Ramaphosa’s leadership, who was
central to the establishment of BBBEE, there is a real
possibility for BBBEE to re-emerge as a top corporate priority
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and there is no better moment to raise awareness of the need
for economic change than now.
State-owned institutions must continue to play an active role
in driving BBBEE for meaningful transformation to take place.
Entrepreneurs are essential to any country’s innovation,
economic growth and creation of jobs.
However, in the end, both public and private sector
enterprises must consider whether they are actively
contributing to transformation of South Africa and if they are
actively supporting BBBEE and employment equity. Thank you
very much, hon Chairperson.
Mr T J BRAUTESETH: Hon Chairperson, hon Deputy Ministers, hon
members and fellow South Africans, good day.
A handy definition of public participation is found on the
Parliamentary Monitoring Group, PMG, website: It is a process
wherein South Africans exercise their collective and
individual initiatives to promote their interests in decision-
making and oversight processes. Public participation is a
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process by which Parliament connects with the people, consults
with the people, before decisions are made.
In this vein, the Select Committee on Employment and Labour
called for written submissions on the proposed Employment
Equity Amendment Bill and the Compensation for Occupational
Injuries and Diseases Amendment Bill.
Those making submissions were then asked to attend a number of
virtual meetings with the select committee in order to present
the arguments submitted. The participants involved can be
divided into those who prioritise economic growth and those
who drain resources.
The participants who drive economic growth included Businesses
Unity SA, BUSA, Banking Association of SA, BASA, Financial
Intermediaries Association of SA, FIASA, Association for
Savings and Investment SA, ASISA, SA Insurance Association,
SAIA, Master Builders SA, Construction Alliance SA, CASA, SA
Civil Engineering Contractors, CompSol, COIDlink and the
Injured Workers Action Group.
On the other hand of the ideological debate are the
participants who slavishly follow the alliance agenda:
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Congress of SA Trade Unions, Cosatu, and the Black Business
Council in the Built Environment, BBCBE.
My colleagues, hon Boshoff and hon Londt, will no doubt cover
the details of the arguments from these actors who drive
economic growth, but the following patterns emerged: 10 of
these participants accepted and welcomed the need for
transformation; 10 of the agents for economic growth
questioned the rationality of allowing a Minister to make
sweeping, unilateral changes to the working environment; 10 of
the progressive participants questioned the right of the
Minister to make these changes without any consultation with
the parties involved; 10 of the participants foresaw
constitutional challenges to the legislation.
Concerns were also raised that the version presented to
Parliament and National Economic Development and Labour
Council, Nedlac, were different, indicating legislative
subterfuge.
Another element to note is that it appears that Ministers have
developed a fond taste for the concept of a National Command
Council from where they can rule by decree and side step
Parliament and its checks and balances.
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Hon Chairperson, the essential point to note is that of the 12
submissions that were received in written and oral form,
albeit in a courteous and gracious manner, from veritable
heavyweights in the business and professional sector were
simply brushed aside as if they were meaningless. And then as
if to placate an unruly child, concessions were made to
consult with the caveat that this would only happen if the
Minister saw fit to do so.
This practice renders meaningless and undermines the fabric of
public participation. It leaves little or no incentive to
involve oneself in an exercise that will bear little, if any,
fruit.
Hon Chairperson, let me be clear, the DA agrees that
transformation is required. The difference between the ANC-led
alliance and us is that we do not see this problem from the
point of view of race exclusively.
We view the challenge from the starting point that targets the
vulnerable and disadvantaged directly, the majority of whom
are black. This direct approach to assist those deserving of
state intervention also makes it more difficult for those
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self-enrichment hyenas who do not require benefits. This will
effectively also stem rampant corruption and patronage.
Simply put, Chairperson, the DA has the solution. It is time
for the ANC to step aside and abandon their Stalinist era
social policies and engage on ideas that can bring real change
to all deserving South Africans and not just the already rich,
connected golden circle. I thank you.
Mr K M MMOIEMANG: Chairperson, I greet all members of the NCOP
and all visitors ... [Inaudible.] ... on behalf of the ANC to
also take part, Chair, appreciating the fact that broad-based
black economic empowerment has to be understood against the
broader approach of the ANC with regard to the economic
balance of the nation.
As the ANC, we are categorical. We are saying that the matter
of economic activity must not be understood for its own sake
or as it is there. Although some things are serious that exist
outside parts of history, we are saying that the matter of
economic activity must be seen as a bread-and-butter issue of
our community.
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Therefore, this is at the centre of our economic policy, of
which broad-based black economic empowerment is one component
thereof. I think what is critically fundamental to our
economic policy is the matter of political economy. In
essence, it is a matter of the distribution of income and
assets to our historically disadvantaged black majority.
What is important, Chair, is to also understand that fact that
the socioeconomic challenges we experience today must be
understood as being institutionalised by the colonial system
that thrived due to the super exploitation by a ruling class
that enabled huge differences in income and wealth to exist
between white and black, which are today some of the largest
differences in the world. Hence, the relevance and importance
of BBBEE.
At the level of the constitutional imperative, it is important
to understand that the ANC has always said that the main
objective of the struggle of our people – and subsequent
policies that we are implementing as the ANC-led government –
has always been to open up opportunities for all historically
disadvantaged people of South Africa. Hence even our
Constitution, as pointed out by the Deputy Minister, is to
show the divisions of the past and establish a society based
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on democratic values to show justice and fundamental human
rights to improve also the quality of life of all citizens.
More so, the preamble to our Constitution is very instructive:
that we need to build a country and an economy that is
developmental and inclusive for all South Africans. No wonder
section 217 of the Constitution, which was referred to by the
Minister, is instructive to organs of state to pursue
procurement policies that seek to advance certain categories
of people who were disadvantaged by apartheid. More so,
section 9(2) of the Constitution states that equality includes
the full and equal enjoyment of all rights and freedoms, and
therefore it becomes important that we invoke the platform,
both at the level of Parliament and government, to promote
equality legislatively and other measures designed to protect
or advance persons or category of persons that were
disadvantaged by unfair discrimination.
Therefore, the section takes into consideration that
deliberate action is required from the state and other
stakeholders to correct the imbalances of the past. Therefore,
broad-based black economic empowerment is therefore a
transformational and constitutional imperative.
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It is important to make a distinction between formal equality
and substantive equality in pursuance of our broader programme
to empower our historically disadvantaged people. One can draw
a distinction just by outlining that formal equality means
that people should be treated equitably regardless of their
particular circumstances. Formal equality simply requires that
people should have the same rights and entitlements. Equality
is therefore achievable if people are afforded the opportunity
to compete on the basis of individual talent. It does not take
into account the social and community disparities between
groups and individuals. This is apolitical and ahistorical –
this is a narrow posture and understanding that the FF Plus
wants the members of this House to accept. On the other hand,
substantive equality provides that equality can only be
achieved if people’s actual social and chronic conditions are
examined. This approach guides the ANC in terms of particular
problems, targeting people that were historically
disadvantaged. For that reason, section 9(2) is an instrument
for transformation, and the creation of a truly equal society
is a powerful tool of transformation.
It is also important to understand that the broad-based black
economic empowerment programme has been implemented, among
other reasons, to ensure the participation of previously
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disadvantaged individuals. What is quite critical is to ensure
that those individuals participate in the mainstream economy
in the reduction of this inequality.
It is also important to raise to the fore that BBBEE has three
imperatives: a moral imperative, a social imperative and an
economic imperative. The moral imperative measure is to
correct the imbalances created by colonialism of a special
type. As a social issue, the world is divided between the rich
and the poor which are delineated by racial categories and is
the cause of various social ills. It has to be corrected
through BBBEE. At an economic imperative level, BBBEE is not
merely a moral or a social issue, but, most importantly, a
pragmatic growth strategy which aims to realise the country’s
economic growth. It is insufficient for the Constitution just
to ensure that the discriminatory treatment of the past is
eliminated. Rather, it is important that we have to put in
place concrete measures like BBBEE to be able to address the
imbalances of the past.
More so, since apartheid was first and foremost a system of
... [Inaudible.] ... exploitation, that preserved the fruits
of South Africa’s enormous natural resources mainly for white
people, it obstructed the emergence of a local black business
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class and a middle stratum. As a result, our democratic
breakthrough came with these huge disparities and ...
[Inaudible.]
What is also important is for us to understand that the ANC,
in redressing poverty and inequality, are focused mainly in
relation to access to productive assets, wealth income,
skills, development and employment. The benefits thereof must
be shared across society and impact as widely as possible.
The transformation of our economy will occur only if the South
African economy builds on the full potential of all persons
and communities across the length and breadth of our country.
Unfortunately, this grand vision of our economy has largely
not been achieved. Our country today is grappling with
multiple challenges, but it is important is that we are able
to accelerate this implementation of BBBEE.
The challenges of poverty, unemployment and equality are due
to the unique socioeconomic characteristics created by the ...
[Inaudible.] ... of colonialism. What is also important is
that we realised that when democratic took office in 1994, the
South African economy was characterised by high ...
[Inaudible.] ... small and insular business sector, a small
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education and FET sector, focused disproportionally on
benefiting the whites and heavily reliant on raw mineral
exports.
Since 1994, BBBEE has been a major thrust of all government
policies, but there were inconsistent strategies in its
implementation. The South African economy still excludes the
vast majority of its people from ownership of productive
assets and advanced skills. So therefore the economy performs
below its potential because of the lower level of income
earned and generated by the majority of our people.
It is important that social partners must implement BBBEE and
ensure that there is accountability in order to increase the
effective participation of the majority of South Africans in
the economy. This is the only way we will truly integrate all
South Africans socially and economically. Part of the reason
why our economy is still untransformed and characterised by
high levels of concentration is simply that the apartheid
government consciously and actively supported champions in
different sectors, developed industrial state-owned
enterprises and monopolies and agricultural practices that
were later privatised and condoned industry cartels in its
effort to promote the self-sufficiency and economic interests
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of the white minority. We are in the process of correcting
this historical injustice to ensure that everyone has
equitable access to resources, effectively building an
inclusive society.
In conclusion, it is important that we note that with high
levels of poverty and employment and inequality inherited from
the past, it is disgraceful and unapologetically racist for
people who benefited from a system that perpetrated genocide
against the indigenous people of this country to challenge
policies in attempts to transform our society to make it
inclusive for everyone who lives in it.
Members of the FF Plus and the DA believe they are the only
ones entitled to live a dignified life. You must know that
everyone has the right to live a dignified life. Everyone has
a right to participate in the economic life of their country,
and it is our responsibility as the ANC that represents the
majority of the people of South Africa to ensure that this
indeed becomes a reality. Therefore, broad-based black
economic empowerment is such a tool to deal with the
structural challenges of our economy. Thank you, Chairperson.
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Mr M F P TAU (Gauteng): Hon Chairperson of the NCOP, Deputy
Ministers, MECs, hon members, ladies and gentlemen, thank you
for the opportunity to reflect on the theme of the relevance
and success of Broad-based Black Economic Empowerment, BBBE,
and employment and the progressive and the progressive Broad-
based Black Economic Empowerment Act enacted in 2003 to drive
forward transformation and industrialisation in the country.
The objective of the Broad-based Black Economic Empowerment
Act is clear in seeking to increase a number of previously
disadvantaged social groups, to participate meaningfully in
the mainstream economy, through various interventions.
Hon Chairperson, today is a momentous day in affirming
practically for the citizens and communities of townships and
informal settlements in the Gauteng City-Region. With the
Gauteng provincial legislature, passing the game changing
Township Economic Development Bill, setting in law a new deal
for Gauteng townships an in action a new economic geography in
our province.
In fact, the Broad-based Black Economic Empowerment Act does
for disadvantaged black people what the Township Economic
Development Act will do for disadvantaged black spaces.
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Mention is made of the Township Economic Development Bill,
since it aims to affirm South African citizens and communities
to certain classes of benefits, including changing how
townships are regulated and governed. Setting up better
procurement rules and programmatic support. Deploying a
dedicated financing mechanism for firms engaged in Township
Economic Revitalisation activities. Providing legal framing
for the taxi economy initiatives. Providing legal framing for
the commercial rapid land release initiatives and provide
legal framing for the township backyard real estate
initiative.
Hon members, with regard to the Broad-based Black Economic
Empowerment Act, as a legislative and policy support of
previously disadvantaged groups, of which the majority are
black, it was necessitated by the historical fact that in 994,
more than 80% of the economy was owned by the minority and
black people were owning less than 20% of the economy.
Most importantly, the Broad-based Black Economic Empowerment
Act was not conceptualised and subsequently implemented from
an ideological vacuum. It was informed by the 1955 Freedom
Charter, premised on the principles of promoting equal rights
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and shared opportunities and also redress, redistribution,
social, economic and Spatial Justice.
Equally, it was informed by the 1996 Constitution, which
enjoins the democratic government to improve the quality of
life of all citizens and free the potential of each person.
Therefore, the seminal question before us, is whether we have
made substantial and quantifiable progress, since 2003 when
that Act was enacted.
Likewise, we have to pause and reflect on what programmatic
measures we are making to reverse the gains rolled back by the
COVID-19 health and economic pandemic. Obviously, we cannot
deny that these two crisis points also serve as an opportunity
to address the persistent, structural, economic inequities
that have existed in post-apartheid South Africa.
As the Sixth Administration, led by our Premier David Makhura,
we have an opportunity to do things differently. In the words
of Mariana Mazzucato and I quote:
The post pandemic trajectory demands that we do capitalism
differently. This requires a rethink of what governments
are for.
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In her estimation, governments should ensure the partnerships
with business involving government funds are driven by public
interest, not primarily profit.
If the 2021 July civil unrest have highlighted anything it is
that wealth and income inequality, if they are not addressed
decisively, will remain a time bomb that threatens our
country’s democracy dividend.
As such, the Broad-based Black Economic Empowerment
legislative and policy framework remains relevant in 2022 as
it was in 2003, and indeed before then.
If we are to save the project of building and refashioning
South Africa, to reflect the ideals enshrined in the Freedom
Charter and our Constitution, it is a non-negotiable, we stand
full square, behind this policy and implement it as compulsory
to all public institutions and private sector institutions.
Hon Chairperson, what progress has been made since 2003? The
implementation of the BBBE policy has not been satisfactorily
implemented in the country by both public and private sectors
since 2003. The public sector noncompliance has created a
situation where private sector does what can best be
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characterised as malicious compliance, whereby their very
minimum benefits to intended beneficiaries and the impact is
reasonable miniscule.
With regard to the current state of the BBBE compliance, in
most public institutions, there is relatively little
compliance. By the BBBE compliance, it refers to the effective
and efficient implementation of the five BBBE elements, by the
private sector and the four elements by the public sector as
prescribed in the quotes of good practice.
To remind us of these elements, these are: Ownership, only
applicable to the private sector, of course. Management
control, skills development, enterprise and supplier
development and socioeconomic development. These elements are
very important in driving transformation and enabling black
people to play a meaningful role in the economy of the
province.
Ladies and gentlemen, how is the Gauteng provincial government
fared in in connection to BBBE? Here is the promising
narrative to tell. In 2021 the Gauteng Department of Economic
Development decided to take the implementation of the BBBE
policy with arguably decisive political will. The department
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and its group which consist of the Gauteng Growth and
Development Agency, GGDA, the Gauteng Enterprise Propeller and
others contributed an immediate R14 million towards the
implementation of the Act in the 2021-22, financial year.
This budget covers the BBBE elements mentioned above of skills
development, supplier development, enterprise development and
socioeconomic development. We have decided to do this through
targeted partnerships with civil society institutions. The
three implementing partners that are appointed to implement
these elements are the Tshwane University of Technology,
Family Tree and the Gauteng City-Region Academy.
Hon Chairperson, in conclusion, the Gauteng province will be
the first province to implement the BBBE policy in the country
whereby all public institutions are contributing towards the
BBBE budget and managed centrally in a provincial war room as
from the next financial year. We estimate that this decisive
approach will enable the province to implement sizable
empowerment projects in high-growth sectors and meaningfully
empower previously disadvantaged social groups. By the end of
the financial year, the province is expected to make a
significant impact in terms of economic growth, job creation
and closing the inequality gap. This important task will be
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done by the Gauteng provincial government, GPG, war room using
resources provided by public institutions and willing private
sector stakeholders.
Undoubtedly, what has been achieved in the current financial
year by the Gauteng Department of Economic Development and its
related agencies is ground breaking and serves as a benchmark.
The province is on course to upscale BBBE implementation in
the next financial year and beyond. As the National
Development Plan guides us, no political democracy can survive
and flourish if the masses of our people remains in poverty
without tangible prospects for a better life.
Hon Chairperson, as I indicated in the introduction that today
is a momentous day in the passing of the Township Economic
Development Bill, by the provincial legislature which is an
enabling legislative and policy framework to implement
decisively the ideals of the National Development Plan. Thank
you very much.
Mr T APLENI: Thank you, Chair. South Africa has since 1994
embarked on a number of approaches aimed at addressing
inequalities which exist as a result of past discrimination.
Broad-based black economic empowerment is one of a number of
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policies introduced to promote the economic participation of
black people in the South African economy. Despite
government’s efforts on black economic empowerment, change has
been very slow. So slow that racial inequality and white
supremacy will remain a vivid reality in South Africa.
At inception, the introduction of the broad-based black
economic empowerment, BBBEE, policy was considered important
in promoting the participation of black individuals in the
local economy. It has also emerged as a policy aimed at
increasing black ownership of shares in major corporations.
With employment equity legislation focusing mainly on
employment opportunity redress in workplace practices. Both
the BBBEE employment equity legislation remain necessary to
remedy the economic imbalances perpetuated during apartheid,
as one of the major consequences of apartheid was the
deliberate exclusion of black people from meaningful
participation in the economy.
Chairperson, these two pieces of legislation were intended to
be instruments through which to forward economic, political
and social interests of black South Africans in order to
rectify social and economic inequalities. However, 28 years
later, we stand here faced with the stark reality that, the
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economic and social marginalisation and impoverishment of the
black majority has persisted and has instead been reproduced.
Black economic empowerment in its current form has failed
dismally to transform the pattern of South Africa’s economic
ownership.
As BBBEE and the so called ‘black empowerment laws’ are
largely about few black male elites who are fronting for white
established owned companies. It has enriched only a small
number of well-connected politicians and businessmen such as
Mr Cyril Ramaphosa and his acquaintances. Therefore, the share
of blacks, in the lowest income categories has remained high.
After 28 years since the introduction of the BBBEE Charter and
legislation, there has been no measurable and visible change
of any economic ownership in South Africa.
Blacks remain poor and unemployed, despite the emergence of a
so called ‘middle class’. Therefore, those deprived of a
decent education by the apartheid regime, appear to have no
better income opportunities now than they did before BBBEE. In
the hands of the ruling party, black economic empowerment
legislation has been, but a system which seeks to form a black
capitalist class for the sole purpose of creating legitimacy
of a neoliberal economic and political system, leading to very
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limited results. There has been a failure to deliver
meaningful change in areas that need it the most such as land,
skills development and employment. There also still exist
differences in performance between historically white and
black institutions in education, health care, with high levels
of inequality and unemployment throughout the country.
Chairperson, the reality that we are faced with once again, is
that South Africa’s economic resources will never be
transferred to the majority of the people, or deployed for
their benefit, unless decisive steps and actions are taken to
address the crises of economic racial inequalities in the
financial sector. The BBBEE in its current form will never
achieve any major changes of the South African economic
patterns. For what is required is leadership which is willing
to enforce it to its fullest. In the absence of decisive
leadership, the Founding Manifesto of the Economic Freedom
Fighters, has laid out a roadmap on what constitutes the
economic transformation in South Africa.
South Africa needs to create a state bank which will serve as
a means to guarantee the majority’s access to cheaper
financial services. State-owned banks have played an important
role in the economies that have had to catch up with the
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industrialised world. In other nations such as the East Asian
economies, state intervention was also critical to economic
performance. The Constitution needs to be amended to
forcefully speak to addressing economic patterns to reflect
demographics of South African population.
We need to pass enforceable legislations and laws that will
guarantee black economic ownership and control and the success
of women-owned businesses in South Africa. For current
policies have proved very weak in principle and practice. We
need a radical economic revolution programme premised on the
consensus of all political parties in South Africa.
Legislation and other measures designed to protect or advance
persons, disadvantaged by unfair discrimination must be taken.
Enforceable economic legislation is the most correct way of
beginning to achieve economic inclusion because the record of
social contracts and compacts aimed at achieving black
ownership and control of the economy have failed dismally for
the vast majority, while enriching a black elite to be found
across both the economic and political domains. Therefore,
most importantly, Chairperson, the land question needs to be
resolved, for without land, there is no economic policy that
will survive. Thank you very much, Chair.
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Mr R PILLAY(KWAZULU-NATAL): Hon Chairperson, Deputy Ministers,
MECs, hon members, other distinguished guests, ladies and
gentlemen, I am pleased to be part of this important debate
and the opportunity to reflect on broad-based black economic
empowerment, BBBEE, which is unmistakably a key part of our
government's integrated policy instrument for economic
transformation.
It is a matter of common cause that various studies reveal
that despite our success from a broad range of government
policies, strategy, interventions, the entrenched inequalities
continue to characterise our economy. And we argue act as a
barrier to economic growth, development and employment
creation. Inequalities continue to manifest themselves in a
number of ways, which are race, gender, and youth
unemployment. The 2019 BBBEE National Status Report released
by the ... [Interjections.] ...
IsiZulu:
USIHLALO WENDLU (Nk W Ngwenya): Angisezwa, kufuneka ngivale
ividiyo.
English:
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Mr R PILLAY – KWAZULU-NATAL – MEC - ECONOMIC DEVELOPMENT,
TOURISM AND ENVIRONMENTAL AFFAIRS: ... BBBEE Commission in
2020 shows a slight change in the levels of transformation
with the overall black ownership reflecting a 4% increase from
25% in 2018 to 29%. Management control was sitting at 39%
overall. And the Johannesburg Stock Exchange, JSE-listed
entities under board control, was at 43,6%. The report
indicated black South Africans held directorships in the JSE-
listed entities but only 3,3% of the entities listed are 100%
black owned, which was 1,2% in 2018 and 1% in 2017.
The three least performing sectors and ownership were AgriBEE
at 12%; financial at 25%; forestry at 26%; But with
construction at 44%, property at 42% and ICT at 36% showing a
relatively better performance. Women ownership in 2019 remains
around 10% in all sectors except property at 11%; transport at
12%; tourism at 14% and construction at 16%. On average,
contributions towards skills development and enterprise and
supplier development ranged between 50% to 60% in 2018 and
2019. This is indicative, however, of just benefit from
bursaries, partnerships and incubation opportunities. However,
absorption into sustainable jobs or supply chain remains a
challenge for many young black youth entrepreneurs. This
analysis has not expanded to assess the impact and
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sustainability of the initiative. And this is a clear
indication that while there is progress made in the
implementation of the BBBEE policy, however, we have not
achieved our objective, in fact, far from it. And we are under
no illusion that when we introduced the policy that the
transformation challenges were going to be solved overnight.
At the same time, we cannot at any point stagnate and simply
watch a build-up of frustration by a new generation
exacerbated by population growth. I would, however, like to
point out from the outset there is a lot of misconceptions and
misinterpretations of our policy and economic transformation.
Some of it deliberate, and some of it is simply uninformed. We
refuse to associate BEE with corruption. Or the fact that
success depends on knowing somebody in a higher place.
I submit total transparency is the first tool to overcoming
this distortion. So one of our first tasks is to defeat this
narrative, but also to expose corruption wherever it may
occur. It is therefore proper to start and emphasise this
point that these amiss conceptions must be dealt with head-on
and I would like to stress the following points. We reject all
the misconceptions associating economic transformation with
malpractices that have nothing to do with the policy. Broad-
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Based Black Economic Empowerment, as we understand it, is a
strategy designed for black people to have much greater
ownership proportionate to the population of our people. This
relates to black people in management, in control, and
equitable representation in the workplace. It relates to
skills development and enterprise and supplier development.
Furthermore, BEE Codes of Good Practice prescribed that we
must apply BBBEE measures whenever the government is involved
in the areas of ownership, supplier, and enterprise
development, and even licensing in concessions, just to
mention a few.
It is perhaps appropriate to comment on the debate around the
Preferential Procurement Regulations which are subject to the
Constitutional Court re-examination, hopefully sooner rather
than later. We are quite clear that there is nothing wrong
with the Constitution. There is nothing wrong with the Act. In
fact, the Act itself is not under attack. It is the
regulations on a technical interpretation or whether they lay
within the power of the Minister is the issue. So we do not
want that issue to be confused in any way. In fact, we are
clear that section 217(1) of the Constitution provides an
overarching basis for fairness and competitiveness and cost
effectiveness amongst other principles.
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Section 217(2) is a clear authorisation of measures that are
designed to effect transformation having regard to our
historic apartheid past. Section 217(3) simply says that those
measures must be set down in law. It is, therefore, I want to
say, make it clear that we reject any unscrupulous individuals
who work against the objectives of the BBE policy but
benefiting themselves at the expense of our people. In fact,
we are quite categorical that those people are stealing from
the poor. We, therefore, urge anyone with any information or
evidence regarding malpractices, whether in government or in
the private sector, to come forward and report such
occurrences.
It is appropriate to reflect on this phenomenon of business
forums that have arisen in our country and in our provinces.
We want to be clear, as we have said repeatedly to them
directly in engagement, if you want to behave in a mafia
protection type of racket, then the law must take its course.
If you are interested in genuine empowerment and that our
doors are open and we will engage with you. We, therefore,
urge anyone, as I indicated, to come forward to expose anyone
engaged in such wrongdoing. I am saying all of this to
demonstrate the fact that our government is faced with tasks
that require our collective efforts. Yes, we will also deal
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with issues of improving supplier payment turnaround times. At
the same time, we expect black suppliers are given
opportunities to provide services. They will also produce
quality and deliver on time. We are definitely not going to
compromise on that. So again, I want to say that we will
reject the narrative that seeks to vulgarise our
transformation. Seeks to criminalise our transformation. Seeks
to compromise and subvert our genuine transformation efforts.
We have designed very effective and targeted programmes in our
province.
We have established energetic coalitions with labour, business
and civil society in the form of the KwaZulu-Natal Economic
Council and the Growth Coalition. I have heard other speakers
decrying the concept of the social compact, but we believe
strongly that it is only when we work together as a nation
that we are most likely to succeed.
So in this social compact we have responsibilities for which
we are accountable for as the government, to create the
capable, effective state. On business, to create
transformation opportunities, as well as on labour and civil
society. We are living in an era where people across the globe
are despondent about establishments that are not bearing
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tangible benefits for them. People are no longer satisfied
with just flowery speeches, grandiose plans, economic
theories, and endless promises of a better life. They want to
see their lives changing for the better. Unfortunately, this
wave of anger is also becoming a breeding ground for
demagogues who are exploiting the legitimate concerns of the
people for their own ends. Therefore, it is incumbent upon all
of us as patriotic South Africans to rally and unite behind a
credible, sensible plan that seeks to transform our economy in
a sustainable way. In this regard, we take the view that our
economy is 30% in the hands of the state directly or
indirectly and 70% in the hands of the private sector.
In the public sector, we seek to use our procurement spend in
a way that will advance our BEE agenda. In KwaZulu-Natal we
have several specific programmes. One of them is the Vula
Fund. At the moment, we have just rolled out the Vula Fund,
which benefits 1 018 SMMEs throughout the length and breadth
of the province. This seeks to counter that argument directly
that BEE seeks to benefit an elite few; 1 018 SMMEs
beneficiaries across the province is a significant number.
We hope soon later this year to open what we call Vula window
two to assist a similar number. But also we are not just
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giving out money. We are supplying equipment to a particular
value to empower these SMMES. And we have three tiers in that
benefit from R20 000 to R500 000, and tier three at
R2 million. But are still in the SMME category. We have a
youth fund. We have a Radical Agrarian Socio-Economic
Transformation, RASET, programme. This seeks to go to the
small growths, the subsistence farmers and take them from
subsistence to small holding and then to commercial farms. The
last two quarters that we have measured, we have benefited 450
farmers who have generated R31 millions of production where we
have provided market access.
In conclusion, no rational, patriotic South African can
question the principle and objectives of BBBEE. It is an
absolute imperative for our sustainable future. Certainly we
can debate the methods, obstacles and solutions, but not the
principle. Thank you for the opportunity.
Ms H S BOSHOFF: House Chair, hon Deputy Ministers, hon members
and fellow South Africans, good day. In 2019, government
published a 25-year review focusing on the progress made by
South Africa since democracy in 1994. However, inequality
remains, making South Africa one of the most unequal societies
in the world, and the gap between the rich and the poor is the
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highest in the world, according to the World Bank Report.
This, despite the ANC’s mandate to redress inequality. If it
wasn’t so sad, it would be laughable that the ANC’s slogan is
“A Better Life for All”.
Two of the key ways that government aims to redistribute
wealth post 1994, was through employment equity schemes and
taxes. And doing so, they want to overcome the economic legacy
of apartheid. While taxes were effective, to some degree,
government admits that empowerment schemes have largely not
been successful. The policy of affirmative action in both the
public and private sectors was aimed at providing redress so
that more black people and women were able to access job
opportunities, especially on a professional and management
levels.
Empowerment schemes as part of Black Economic Empowerment
included inter alia and unfair emphasis on race and workers,
rather than qualifications and experience. The shortage of
essential skills due to the plight and unemployment of skilled
workers, which resulted in a weakened economy, doomed millions
of job seekers to the despair of unemployment, has only
enriched the politically connected elite. Which now brings me
to the Employment Equity Amendment Bill. This proposed Bill is
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nothing but the means of the ANC to bestow untoward pass on
the Minister of Unemployment and Labour to allow him to wield
the workforce into a shape that is deemed, racially acceptable
by them.
This Bill wreak havoc on an already failing economy. Investors
will be deterred, growth will be stunted and jobs will
continue to dwindle. No one in their right mind will want to
invest in this country or start a business when a politician
is given the powers to decide what the labour force must look
like and how the labour market should operate.
[Inaudible.], the numerical sectoral targets which will now be
set by the Minister is nothing short of ... [Inaudible.] ...
which is in contravention of the Constitution. They ANC must
admit that they have lost the battle on job creation. The
President finally came around to what the DA has been
preaching that government doesn’t create jobs, businesses
create jobs. House Chair, mark my words, the repercussions
with the enacting of this Bill will be felt for generations to
come.
The ruling party should rather shift its focus to increasing
the pool of available skills through the establishment of a
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first grade education system. To fix a problem, you start at
the root of it, but ... [Inaudible.] ... that is not the way
of thinking for the ANC. Three years of incoherent ANC
policies, stringent regulations, red tape, corruption, and
last but not least, state capture. The economy has been
severely damaged. We saw the economy slump by a whopping 7% in
2020, the biggest since 1946. And who was to blame, no one
else but COVID-19.
Unfortunately, South Africa was in a crisis long before COVID-
19, but like the ANC is, they always shift the blame and never
look at themselves. Since 2012 the economy has not grown by
more than 3% per annum. In 2021 we saw the loss of over
1 million jobs, with unemployment rate sitting at a whopping
46,6% on the expanded definition. About 25,5 million South
Africans are unemployed and not economically active, with many
skilled workers and capital leaving the country.
The question we must ask ourselves is, will we ever get these
people and their skills back to the shores of South Africa? It
is time that the ANC realises that the proposed Employment
Equity Amendment Bill will do nothing for the poor or the
marginalised, all the masses in the rural areas, on whose
behalf the ANC prefers to speak. This Bill will only assist
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the politically connected elite, widening the already huge
inequality gap.
What the Minister and his government should be doing is
explaining to the 21,6 million black South Africans who are
unemployed and not economically active and unlikely to find
jobs; how the implementation of this Bill will lessen their
plight and provide them with the necessary jobs rather than
relying on a ... [Inaudible.] ... social grant?
The proposed Employment Equity Amendment Bill as it stands
now, does not target or advance the disadvantage, and will
most definitely not promote the achievement of a quality and
foreseeable future. Government should rather concentrate its
efforts on fixing education, freeing the labour market from
excessive regulations, building competitiveness and making the
country more attractive to local and foreign investors.
However, I have a feeling the ANC is not very good at
multitasking.
I would like to make it clear that the DA is committed to real
black empowerment and is continuing with seeking ways to
broaden economic inclusion for the previously disadvantaged
and deliberately excluded by virtue of their race, but also
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gender equality and disability. One of the DA’s core values is
a fair society and that remains imperative for us to build
both a moral and economic society and take steps to redress
the painful legacy of apartheid. That is why the DA will seek
to table a Private Member's Bill called the Social Impact
Bill, that will seek to scrap the Broad-based Black Economic
Empowerment Act, BBBEE and introduce criteria based on
sustainable development goals.
Crucially, we have always maintained that we aim to achieve a
society in which race is not a determinant of opportunity. We
have argued that empowerment policies need to become less race
focused over time as policies begin to do their work in
redressing the legacy of apartheid. The only reason the ANC
government has had to focus ever increasingly on narrow racial
categorisation, is because the empowerment policy has failed
so dismally and empowerment framework must be one that does
not speak to race but equal opportunities for all South
Africans. We believe that it is possible to design an
empowerment framework that will deliver equality of
opportunity for all South Africans over time and we will seek
to prove that with our Private Member's Bill.
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In conclusion, I wish to unequivocally state that with the DA
steering the ship with regard to employment equity, it is the
only way South Africa will see a bright future as we believe
in a fair, open opportunity and diverse society for all. I end
with a quote from Ellen Wilkinson:
Unemployment is bigger than a political party. It is a
national danger and a national scandal
It would therefore, ... [Inaudible.] ... the ruling party well
to digest the words of Ellen Wilkinson. I thank you.
Mr N M HADEBE: House Chair, colleagues, the IFP has always
been in support of ... [Inaudible.] ... which is specifically
defined in the words of his Excellency, our parliamentary
leader, the hon Prince Mangosuthu Buthelezi: “To give a hand
up and not a hand out”. This means that the Broad Based Black
Economic Empowerment and employment equity must not be used as
a vehicle for a get rich quick scheme for certain individuals.
It needs to be more comprehensive than that. It must go on to
create a foundation upon which black owned run and inclusive
businesses that are permanently featured in our economy.
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Further, it means that businesses and employment of black
South Africans is sustainable and valuable. Only once this is
achieved can we start seeing meaningful integration and
ownership of our economies at local levels. If we look at
South East Asia economies, we will see that it is the local
residents who have complete control of the informal and formal
sectors. Their ability to grow their economies comes from the
ability to create a large population consumer base. This is
done through locally owned businesses, which employ local
people that benefits their own economy.
Currently, what is being observed is that only a few have
managed to capture and exploit the system by turning it into a
get rich quick scheme. We need to start seeing greater
attention ... [Inaudible.] ... to targets at local and rural
level of the Broad Based Black Economic Empowerment. Policies
starting to be met, greater emphases must be placed on how to
assist rural based people in accessing a growing economy with
sustainable jobs.
The BBBEE policy is also one that is not very well publicised
and translated to people at grass root level. We need to start
seeing a consistent monitoring and evaluation whereby year on
year, we are able to adapt our targets and strategies for the
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best possible reach to rural, poverty struck communities. I
thank you, House Chair.
The DEPUTY MINISTER OF SMALL BUSINESS: Hon House Chairperson,
and good afternoon to the other Deputy Ministers, DMs, the
Members of Executive Council, MECs and other members of the
NCOP. Firstly, it is important that we must remind ourselves
that that Broad-Based Black Economic Empowerment Legislation
was born out the commitment to address the historical
injustices in our country. The revised BBBEE codes were
introduced in 2015 after an evaluation of the impact in which
it was concluded that the majority was still being side-lined
by the then BEE Legislation interventions.
Secondly, the BEE Legislation mirrored the intentional and
decisive state intervention policies implemented by the
colonial and apartheid government which were aimed at
reaffirming the white Afrikaners and white British over the
black and African majority.
Thirdly, the colonial and apartheid state legislations were
always intentional and decisive to support Afrikaners and so
must be the legislations of a democratic government. Our
legislations must continue to target the historically
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disadvantaged individuals, the majority of whom happened to be
black and African.
We cannot ignore history, for an example among the measures
the apartheid government took to discourage the growth of
African business in the urban areas included that, the plot on
which an African could set up a business was limited to an
area scarcely bigger than that of a matchbox township house,
in the businessman was not allowed to own more than one
business nor was he allowed to form partnerships or companies.
If a businessman or businesswoman wished to expand his
business or her activities, he was given the option of doing
so in the Bantustans.
The democratic government must learn from this history and
ensure that it remains duty bound to affirm the historically
disadvantaged people of our country, in particular black
people who are Africans, Coloureds and Indians, women, youth
and rural communities and people living with disabilities.
The BBBEE Legislation remain relevant, I say - particularly
for small businesses given the fact that most of them are
black, African in particular which include women. They are
registered as either Small, Medium and Micro Enterprises,
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SMMEs, or cooperatives. In terms of the BBBEE, these are
classified either as Exempted Micro Enterprise with an annual
turnover of R10 million or less. Qualifying Small Enterprise
with an annual turnover of R10 million and R50 million.
The application of BBBEE is guided by 11 relevant Sector Codes
of Good Practice which on amongst others determine
qualification criteria for the issuing of licences,
concessions, or other authorisations in respect of economic
activity in terms of any law, develop and implement
preferential procurement policy, determine qualification
criterion for the sale of state-owned enterprises, determine
criteria for the awarding of incentives, grants, and
investment schemes in support of B-BBEE etc.
The revised BBBEE Codes of Good Practice came into effect on 1
May 2015 and is meant to re-orientate the framework and re-
position the BBBEE as a catalyst for economic growth and
development and to set the record straight regarding the myth
that the BBBEE is counterproductive and does not assist in
growing the economy.
The Enterprise and Supplier Development Element is one of the
priority elements in which measured entities are required to
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meet 40% of the targets on enterprise development, supplier
development of the categories will result in overall achieved
BBBEE status level being discounted.
The new trajectory of the BBBEE codes is to encourage and
cultivate the following in the South African economy: 1.
Change South African business culture to be supportive of
entrepreneurship and diversification of value chains,
concerted effort in linking BBBEE with other government
economic development strategies such as Industrial Policy
Competitive Supplier Development Programmes, New Growth Path,
3. Empowerment efforts should result in the promotion of a
culture of venturing into new territories, operational
excellence and risk taking.
Focus on businesses and industries that result in significant
job creation and addressing socio economic challenges. The
last one, is the symbiotic relationship between the public and
the private sector and amongst private sector players, and
large and small enterprises to unlock opportunities for
smaller enterprises and cooperatives.
Our department, Small Business Development will explore the
following: 1. A mutually beneficial relationship with private
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sector for supplier development opportunities for SMMEs, 2.
the department and its agencies which are the Small Enterprise
Development Agency, Seda and the Small Enterprise Finance
Agency Sefa, to provide financial and non-financial support to
participating in businesses growth through variety of
programmes, e.g. Small Enterprise Manufacturing Support
Programme, Technology Transfer Facility, asset finance,
bridging loan, etc.
Third one, that the department its agencies have a pipeline of
small businesses that are ready to provide products and
services to markets in various sectors of the economy. The
last one, potential partners be prepared to provide a
financial and non-financial - especially quality and standards
training, support to participating in small businesses, as per
the BBBEE Codes of Good Practice. Focus of supplier
development opportunities to be of assistance with scale,
growth, and sustainability.
In conclusion, House Chairperson, the BBBEE Legislation
remains the main government legislation informed by the
Constitution whose aim is to advance the economic
transformation, enhance the participation of historically
disadvantaged individuals. Therefore, I put the point, it’s
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still remains relevant this BBBEE. Africans in particular,
Black people in general, Coloured and Indian, women, youth,
rural communities and persons with disabilities, should be
covered and we must work hard to ensure that more people can
be assisted through this policy. I thank you very much, House
Chairperson.
Mr M A P DE BRUYN: Hon Chair, a good education and proper
training are measures that bring about real empowerment
because knowledge is power and knowledge is also a virtue.
Therefore, the right thing to do will be to give our people
power through technology and the wrong thing to do will be to
focus just on the outputs of racial representation, while
neglecting the input of a decent education. Currently,
affirmative action fails to solve the real problems of
disempowered people in South Africa, and these realities are
apparently not seen by the ANC-led government.
The battle against poverty and unemployment under all South
Africa’s people is being lost because of the chronic skills
shortages. People are just not trained for the type of jobs
the South African economy can provide. And, if the government
is genuinely committed to solving poverty and unemployment it
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will find it has no choice but to make use of all the skilled
workers regardless of the colour of their skins.
The skills shortages are a crippling constraint on the
economic growth and we can’t be forced to pick and choose
among job applicants on the racial grounds at the time that
South Africa needs every person they can contribute. Let us
rather appoint the best person for the job in terms of
qualification, skills and abilities.
Hon Chair, Eskom is one of the companies in the country
driving affirmative action the hardest. Without realising that
you can only drive the issue if you can get the people with
the right skills and the right knowledge to do the work. But
this is not the case with Eskom. It is clearly visible if you
look at the state of Eskom and the state of load shedding.
Skilled people with years of experience are leaving Eskom, due
to the fact that there is no future for them because
promotions are rewarded based on race and instead of
competence.
This is also the case with every company and institution in
South Africa where affirmative action is being implemented.
Especially at state-owned enterprises like Denel, South
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African Airways, the post office, South African Broadcasting
Corporation, SABC, Transnet, only to name a few. And, not to
mention the state of municipalities all over South Africa
where service delivery is almost non-existent, infrastructure
has deteriorated and corruption is the order of the day. All
of this is because the right people are not employed based on
skill and experience but rather based on the experience but
rather based on the colour of their skin.
Black Economic Empowerment, BEE, is increasing the number of
incompetent companies skewing the economy and promoting tender
corruption. And, BEE companies are being rewarded tenders even
though they do not meet the relevant criterions. This is why
legitimate competent companies are being denied the
opportunity to tender, forcing them to eventually close their
doors. And, by doing so contributing to unemployment and
economic distress.
Hon Chair, I would like to use the example of a Free State
based construction company I was in contact with over the past
few years. Every single tender that this company applied for
was awarded to a BEE company instead. But at the end of the
day, they still ended up doing the job as a subcontractor
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because the awarded contractor did not have the capacity to do
the job.
So, what does this mean? It means that the BEE contractors
make millions in profit without lifting a finger and without
at least contributing to job creation or skills development.
How can this be fair?
Rather than ensuring equality over the past 28-years, BEE
became a tool to .... [Inaudible.] ... tenders and wealth to
the elite black business owners, politicians and ANC cadres,
instead of distributing opportunities for all South Africans.
And, if you look at the number of tenders awarded annually to
BEE companies compared to the number of black-owned companies
in South Africa, it is evident that the ANC has failed to
ensure empowerment and that BEE has become black elite
empowerment.
Hon Chair, next month we are in our 28th year of democracy.
That adds up to 12-years of basic education, four years of
tertiary education, and 12-years of experience in other work
places and the business court.
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Surely, there is a so called lack of equality in South Africa.
It can’t be blamed on the minority or the past any more. You
can’t fight racism with more racism. You will lose the moral
high ground and you can call it what you want. But at the end
of the day it is still racism based on race discrimination.
Last year, the President stated that black people must be
included in the economy and that BEE is here to stay. I can’t
help but wonder what economy the President was referring to.
Because surely he couldn’t have meant the economy of South
Africa seeing that our economy is already down to the drain.
As I conclude, South Africa desperately need skilled workers.
Therefore, affirmative action and BEE is already being
disregarded by more and more private companies and becoming
increasingly irrelevant in South Africa today.
If government truly wants to empower black people in South
Africa and not only the black elite, it will have to invest in
quality education and skills development to ensure sustainable
economy that will provide enough opportunities for all in
South Africa. Without the need to implement and force down the
racist policies on the white minority of South Africa. Thank
you.
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Mr F V MLOMBO (Mpumalanga): Hon Chair, let me greet you and
also greet ... [Interjections.] ...
The HOUSE CHAIRPERSON OF THE NCOP (Ms W Ngwenya): I can’t hear
you. Can you speak louder or come closer to the mic?
Mr F V MLOMBO (Mpumalanga): ... Thank you very much, hon
Chairperson. I think you can hear me now.
The HOUSE CHAIRPERSON OF THE NCOP (Ms W Ngwenya): Yes, Chief
Whip.
Mr F V MLOMBO (Mpumalanga): Let me greet you and the
Chairperson of the NCOP, the Deputy Ministers that are here,
the MECs and my colleagues from the different provinces who
are here as special delegates.
I am here to participate in this debate and through my debate
I will be arguing that Black Economic Empowerment, BEE, and
employment equity are the necessary interventions strategies
to transform our economy to serve the majority of this
country.
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I will further argue, Chair, that BEE is on track to achieve
its objectives for transforming our economy. I will further
argue that the South African economy is on the right path with
regard to the transformation agenda. Lastly, Chair, you will
allow me to argue that the BEE is a progressive tool to undo
the injustices of colonialism and apartheid that destroyed the
African continent and our country for more than 300-years.
Who can argue against the fact that South Africa is one of
those African countries that has suffered the brutality for
colonialism that made the people of Africa to be economically
disempowered? Who can argue that colonialism was a brutal
practice that ensured that the people of Africa and South
Africa were politically and economically dominated? That
colonialism was an instrument that dehumanised the people of
Africa, that destroyed the family units, that turned our
people into slaves, and introduced the apartheid brutal
policies of unpaid labour and forced labour?
It is this colonialism that transformed black man and women
into commodities that can be sold and exchanged for cheap
labour. It is this colonialism that subjected the African
people to be the hewers of wood and drawers of water in the
land of their birth. So, it is against this background that
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the people of South Africa are thankful to the ANC for having
introduced this transformative legislation whose objective is
to begin to undo all these injustices for apartheid and
colonialism that has affected our people for more than 30-
years.
I want to argue, Chair, that it is only through the
introductions of the policies like the BEE that we can ensure
that the black people of this country they own and control the
commanding heights of our economy. It is only through the
introduction of the BEE that the majority of the people of
this country can be able to own and control the levers of our
economy.
It is only through the introduction of the BEE and Employment
Equity that we can show that the economic and imbalances of
the past are attended to. And, it is only through the
introduction of progressive policies that we can be able to
build a better life of prosperity for all South Africans
irrespective of race, colour ... [Interjections.] ...
The HOUSE CHAIRPERSON OF THE NCOP (Ms W Ngwenya): Excuse me
hon member, can you please move to the right because ...
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IsiZulu:
... uyasithela manje.
Mr F V MLOMBO (Mpumalanga): ... Am I fine now?
The HOUSE CHAIRPERSON OF THE NCOP (Ms W Ngwenya): Yes. Thank
you.
IsiZulu:
Ngibona uloku uyasithela, thina asisakuboni ngapha. Phakamisa
izwi kancane, lunga elihloniphekile.
Mr F V MLOMBO (Mpumalanga): Thank you very much. I was still
elaborating on the importance for this progressive policies
which is the BEE, the Employment Equity and others, that it is
through them that we can be able to build a better life and
prosperity for all South Africans without regard to their
race, colour and gender.
It is only through these policies that we can be able to
eradicate the legacy of colonialism and apartheid. And, to
ensure that our country achieves an all-round emancipation and
upliftment of the people of this country. If we are serious
about building a truly united, non-racial, non-sexist,
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democratic and prosperous South Africa, all of us irrespective
of our ideological differences, we need to join hands and
support the introduction of these progressive policies.
In my province, I can say without mincing my words that we
have already seen the progress that has been achieved because
of the introduction of these policies. Because of our
government supporting these progressive policies, we have seen
thousands of our people getting their footprints in the
different sectors of our economy.
If you go to the tourism sector, there are a number of black
people who are there and contributing positively to the
economy of this country and creating jobs. They are leaders
and they are owners in the tourism sector. The same applies to
construction sector, the mining sector, and to the information
technology, IT, industry.
So, it is correct for us to argue that we have already seen in
our province that BEE and Employment Equity legislations are
able to transform our country to a better country, a country
that benefits all its people.
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It is only through the BEE that we are able to see the
promotion of economic transformation in different sectors in
our province. That we are able to experience the achievement
of a substantial change in the composition of ownership in all
these different sectors. It is only through the support of
this progressive legislations that we are able to experience
the active participation of women in the different sector of
our economy. That we have seen the promotion of investment
that has led to BEE in our province. And, the empowering, most
importantly because our province is a rural province, through
the support of these important legislations, we have seen the
radical empowerment of rural communities and local communities
so that they can have access to economic activities in our
province.
So, it is correct for us to argue, that because of all this
progress that has been achieved, the increased representation
of black people in management positions in different sectors,
the increased representation of women and youth and, because
of the increase ownership of black people in different
sectors, we can argue as I did when I open my debate that BEE
is in fact slowly achieving its objectives. That the South
African economy is on the right track of transformation. That
the BEE is the progressive tool to begin to undo the
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injustices of the past and lead us all to the South Africa
that we can truly be proud of, a South Africa which
accommodates all people irrespective of their racial
differences, gender and all the other measures of
inequalities. I thank you, Chair.
Mr I NTSUBE: Hon House Chairperson Ngwenya, Chief Whip of the
Council Tate Mohai, the Minister, the Deputy Minister, MECs
and hon members of the Council, the ANC’s version for the
South African economy is guided by the Freedom Charter’s
clarion call that the people shall share in the country’s
wealth. The ANC is committed to building a more equal society
in which all can find decent work and enjoy sustainable
livelihoods.
The ANC recognises the dialectical and mutually reinforcing
nature of the relationship between economic growth and human
development. Inclusive growth must necessarily create
opportunities for those who are excluded and it is also by
creating new opportunities for those who were excluded that
growth becomes truly inclusive.
The need to effect redress in the interests of equity is also
embodied in our Constitution. The South African Constitution
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laid the foundation for a coherent and inclusive economy that
is inclusive for all its citizens.
Broad-based black economic empowerment is one of the
interventions to transform the economy that seeks to achieve
this inclusiveness. The purpose of unpacking the need for this
and its impact will provide members of the FF Plus with the
basic explanation of what broad-based black economic
empowerment means. Simply put, it is an integrated and
coherent socioeconomic process located within the context of a
national transformation by seeking to substantially and
equitably transfer the ownership, management and control of
South Africa’s financial and economic resources to the
majority of its citizens, which are mainly Africans – blacks.
From 2003, the BBBEE Act was firstly promulgated to 2013,
which marked 10 years of BBBEE policy implementation. There
were some significant achievements. This includes R600 billion
worth of BBBEE transactions and 500 publicly announced BBBEE
ownership transactions worth at least R533 billion. The
representation of blacks and women in senior management
positions in the private sector had increased from less than
10% in the 1990s to more than 40% at the time. The National
Empowerment Fund had improved transactions worth more than
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R5 billion to 60% of beneficiaries being SMMEs and support
given to the creation of 44 000 jobs.
According to the Value of BBBEE Deals Report published by
Intellidex in June 2015, BBBEE deals by the JSE 100 largest
companies since 2000 generated R317 billion in total value
attributable to beneficiaries as at 31 December 2014. Of this
amount, R52 billion, which is 16%, is attributable to staff
schemes, R196 billion which is 62% of strategic investment
partners and R69 billion and 22% to broad-based community
schemes, which have featured in several financial sectors’
ownership deals.
BBE share ownership programmes are some of the widely
recognised forms of ownership by broad-based group members in
corporate South Africa. This allows business to divest equity
rights to its key stakeholders such as workers and surrounding
communities. The footprint of the impact of such a collective
scheme ownership transaction fast spreads larger than
traditional equity partnerships.
It is important to note that the impact of such ventures have
benefited many black beneficiaries in terms of their access to
the economy, whilst simultaneously increasing the black
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ownership profile of the South African business landscape.
This is real empowerment. It is quite telling that some
members of this House would have preferred that we continue
with life as if apartheid discrimination never occurred.
Multinational companies that cannot sell their equity to black
South Africans and have never sold equity outside their
country of origin are allowed to make contributions towards
equity-equivalent investment programmes, in return to be
awarded full BBE ownership points for an agreed period of time
based on investment amount.
Hon members, the value of Equity Equivalent Investment
Programme, EEIP, contributions may be measured against 25% of
the business value of the South African operation or against
4% of the total revenue of its South African operations
annually over the period of continued measurement. These
investments are focused on enterprise and supply development,
critical skills development and research and development. The
beneficiaries of the programme are black South Africans and
black-owned South African companies.
To date, 22 multinational companies across different sectors
have been granted final approval to participate in the EEIP.
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Of the approved number, 32% is the automotive industry, 27%
the ICT sector, 18% in manufacturing and 23% split between
construction and health care and the maritime, financial and
agricultural sectors, with a total investment of more than
R8 billion. More than 200 000 jobs, both direct and indirect,
have been created since the inception of the programme and
supported 87 emerging black-owned businesses including black
women and youth-owned businesses.
On the funding front, the National Empowerment Fund, the NEF,
is one of the institutions that government established in
order to support inclusive growth and broaden black economic
participation in the economy. The NEF recognises the
stimulation and support of township economies as a key
priority, so much so that it maintains a specialised and
standalone programme in their annual performance plan,
referred to as the Rural and Township Development Fund.
Further, to support provided to rural and township-based
businesses in this programme, support may also be provided
through the other programme. Since its inception, the NEF has
approved a total number of 1 230 ... [Inaudible.] ... which
are worth a total R11,9 billion, with a total project value of
R20,37 billion. As a result of these approved funds by the NEF
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... [Inaudible.] ... managed to disperse a total R7,7 billion,
creating and sustaining in excess of 100 000 jobs and more
than 70 000 new jobs to date. The NEF has approved
R2,8 billion and disbursed R1,7 billion to support 356 rural-
and township-based businesses, creating and supporting more
than 31 000 jobs.
From the financial years 2019-20 and 2020-21, more than
R500 million has been approved in support of 83 businesses,
creating and sustaining more than 4 000 jobs in township- and
rural-based businesses.
The financial sector is the lifeblood of the economy and is
important to enable implementation of BEE. The Financial
Services Sector Charter is an instrument that the sector uses
to implement BEE and to transform the sector. A 2017 report
developed by ... [Inaudible.] ... committee on finance and the
Portfolio Committee on Trade and Industry as well as a study
undergone by the Association of Black Securities and
Investment Professionals ... in 2018 the following was
identified for the financial services sector. There were 48
black asset managers operating in South Africa. An amount of
R490 billion of total assets was managed by black asset
managers. Since 2009 there has been a 243% increase in growth
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for black asset managers. [Inaudible.] ... percent of firms
believe that current BEE targets under the BEE financial
services sector “of good practice” are the right ...
[Inaudible.] Forty-nine percent of the total industries are
represented by women. Twenty-five percent of external service
providers used are level 1 BEE contributors. Seventy-two
percent out of 1 584 unit trusts are managed by black firms.
Ninety-six percent of firms have either a level 1 or level 2
BEE contributor status. Forty-four percent of firms procured
less than 25% of services from suppliers that have level 1 or
2 BEE rating. More people now have access to financial
products than ever, citing an increase from 42% in 2003 to 58%
in 2016 if SA Social Security Agency cardholders were
excluded.
According to a study by the NEF of JSE-listed companies, which
sample the top 17 financial services companies by market
capitalisation, black ownership was at 6% against the
Financial Services Commission target of 10%. The latest report
of the status of the financial sector is being concluded by
the Financial Sector Charter Council.
With regard to youth unemployment, on 28 August 2018 the Youth
Employment Services Initiative was gazetted and incorporated
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in the BEE quotes for implementation. The Yes Initiative was
one of the initiatives presented in the 2018 state of the
nation address by the current President, President Matamela
Cyril Ramaphosa. Its primary objective is to improve the
employment outlook for young work seekers by offering work
opportunities and therefore inclusion in the South African
economy. Its intention is to create one million equality work
experiences for unemployed youth and its purpose is to improve
their chances of meaningful participation through affording
the employment of business opportunities. Whilst the
initiative is still ... [Inaudible.] ... through the
engagement with industry leaders and consistent partners, the
awareness has created a strong platform for growth and
delivery for its objectives.
The number of jobs created through these initiatives as at 15
March 2022 is more than 73 000 and 1 947 companies have signed
up. More jobs are expected to be created in this regard.
The balance of evidence indicates that a significant advance
has been made since the implementation of the BEE policy.
Anyone who wants to suggest that there has been no advance
made in increasing the participation of previously oppressed
and disadvantaged people would really be dishonest. However,
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notwithstanding the economic advances of the past 28 years of
freedom and democracy, the legacy of colonialism and apartheid
is deeply entrenched in our society and in the structure of
the South African economy. More needs to be done to expand the
participation of the poor and marginalised in the economy.
These are weaknesses that have been acknowledged by the
government and their efforts to overcome these must be
ceaseless.
In conclusion, the ANC is committed to managing the South
African economy in such a way as to promote inclusive
participation and employment-creating inclusive growth. Thank
you very much, House Chairperson.
Ms D M BAARTMAN (Western Cape): Hon Chairperson, fellow South
Africans, no other area of the Lord we see the acute impact of
the Broad-based Black Economic Empowerment, BBBEE, as we do in
public procurement. In fact, this affects approximately 22% of
our GDP in South Africa. Given that the status funded by the
taxpayer through various taxes be it income tax, value added
tax, VAT, or the fuel levy, it is thus important for the state
to have certain principles by which it procures taking to
consideration that the beneficiaries of this procurements are
the people of South Africa.
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Public procurement set up the rules by which the state is
allowed to use the people’s money to buy goods, works and
services. Our Constitution requires that public procurement
system is fair, equitable, transparent, comparative and cost-
effective in section 217, and that national legislation must
have its framework.
In 1999 in the Cash Paymaster Services versus Eastern Cape
province case, the concurring judgement emphasised the factors
when making this decision as per the Constitution and made it
clear that the board disregarded the values of fairness,
transparency, comparativeness and cost-effectiveness to the
sole benefit of equity when in fact the Constitution does not
allow one to pick and choose between the values but holds in
an obligatory manner that all these values are equal and need
to be implemented in a balanced manner.
When this assessing procurement decision in terms of general
AllPay versus the SA Social Security Agency, Sassa, 2014 court
case methodology, we must look at all five principles in
section 217 of the Constitution and they must be read together
not in isolation. In what has been a progressively the Zondo
Commission were not only spoke out about the impact of
corruption on the public procurement regime but published a
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full chapter analysing the current fragmented landscape and
identify patterns of abuse within the procurement cycle. In
terms of abuse are preferential procurement, which is more
specific to our conversation today.
The Zondo Commission halt that code. “However, average shows
that the ideals of empowerment with grossly manipulated an
abuse to advance the interest of a few individuals”. At
Transnet regiment received contracts without ever going
through a procurement process but China South Rail, Transnet
even change the requirement that China South Rail needed a
BBBEE certificate because they would have scored zero in this
regard.
At the SA Airways, SAA, the former chief procurement officer
was instructed to signed letters with Swissport and engine
amongst others for contract renewal and set aside 30% of the
contract value for BBBEE entities, which was not lawful and
matching line with open tender procurement procedures to quote
procure the most cost-effective provider for SAA controls. In
fact, the corruption runs so deeper that SAA bid in a 63%.
Black-owned company was informed that they must set aside 30%
of their contract to quote an unspecified SAA nominated black-
owned small business for clothes.
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In the City of Johannesburg, Ending On-Hand (inventory), EOH,
received a heads up and confidential information wherever
tenders were coming out and was specifically asked to donate
funds to the ANC before and after the awarding of the tender.
In this regard, the Zondo Commission established a pattern of
what they considered irregular solicitation of donations
coupled with the award of tenders.
Similarly, in the Free State Provincial Government the Zondo
Commission found that black head consulting was mocking the
province with asbestos tenders and they also were donating
more advancing to the ANC.
Chairperson, in the Western Cape province we have reduced the
procurement disclosure report on Covid-19 expenses and within
our Annual Procurement Discloser you would find 67% of small
medium micro enterprises are suppliers, 60% BBBEE suppliers
and 63% are suppliers within the Western Cape province who
benefited from Covid-19 funding from provincial department and
entities. However, despite the Western Cape overachieving on
the bench marks and targets set by the national government, we
are currently limited by a fragmented legislative environment.
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In 2020, the much anticipated Draft Public Procurement Bill
was published for public comment by the National Treasury with
the aim of consolidating this current fragmented environment
in South Africa. The Bill will amend substantive provisions of
the current BBBEE legislation. And in its current form the
draft Bill is very vague on a few matters, including the
independence of the regulator.
Electronic procurement rules for local government procurement
when there are repealed and a decision of repeals and
centralises all over the power regulating preferential
procurement in the hands of the National Minister of Finance.
The Western Cape Provincial Treasury commented on the Draft
Public Procurement Bill, a 255-page document, which indicated
in brief that in its current form the province cannot support
the draft Bill. One comment in the submission sums up our
concerns in our province and it holds, I quote: “The draft
Bill loses sight of the core imperative of attaining value for
money in public procurement and that it does not provide for
any systems or approach on which value for money can be
transparently assessed relative to other procurement
objectives”.
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Now that the Afribusiness Constitutional Court case has
concluded which confirm the unconstitutionality of the 2017
preferential procurement regulations. The National Treasury
has issued new draft regulations in this regard.
And the Western Cape budget committee has requested that our
Provincial Treasury submit inputs regarding these new
regulations. In the Constitutional Court, the debate on
whether pre-qualification should be allowed ended up riding on
whether or not the National Minister of Finance may determine
preferential procurement policy for each organ of state as a
blanket role through regulations and the court found out that
each organ of state is empowered to determine its own
preferential procurement policy.
And that the Minister cannot make regulations to cover the
same field. Given this judgement it makes me wonder whether
employment equity will soon see similar developments.
So now we are between a rock and a hard place with vague draft
regulations and vague draft Bill repealing or amending almost
all of the procurement and almost all of the BBBEE legislation
being debated within an already fragmented public procurement
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legal regime which favours corruption and nepotism of a
transparency and cost-effectiveness.
So, amongst others this turmoil it is important to ensure
price and functionality remain the most important factors
within the legislative framework. After all, we are spending
the people’s money. And in spending it, we need to ensure that
we deliver services at the lowest cost closest to the people.
Well this will not be an easy task or an easy road to walk. It
is up to each and every one of us to focus on achieving the
values as set out by our Constitution not just fairness or
equity or transparency or competitiveness or cost-
effectiveness, but a balance of all five of them. This
Chairperson, is non negotiable. I thank you.
Mr M MOHALE (Free State): House Chair, to all members of the
committee, representatives from the provinces, MECs and all
other members protocol observes, we take an honour to also
partake in this important debate. Let’s one start by saying
that the relevance of the broad-based black economic
empowerment, BBBEE, and the employment equity legislations is
beyond question given the history of our country. Their
relevance is derived from section 9(2) of the Constitution of
the Republic which provides that equality includes the full
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and equal enjoyment of all rights and freedoms. To promote the
achievement of equality legislatives and other measures
designed to protect or advance persons or categories of
persons disadvantaged by unfair discrimination made be taken.
The question that could be debated is whether these pieces of
legislations have been successful in its entirety in
addressing the transformative imperatives enshrined in the
Constitution.
Based on our own experience and data from various government
institutions the success stories are uneven. The 25-year
review cites that the black economic empowerment, BEE,
Commission report of 20218, shows a decline in black ownership
within the Johannesburg Stock Exchange, JSE, listed companies
from 33% in 2015 to 27% in 2017. Black directorships increased
by 113% between 2006 and 2016 when both direct and indirect
ownerships are considered. Direct black ownership constitutes
only 3% in 2015. Ownership by black females also declined from
11% to 9% during the same period. The 25-year review also
cites the finding in the World Bank report which concluded
that in overall being white or South African Indian for whom
apartheid legislation was measured remains a strong
determinant of wealth. It is indeed a fact that our economy is
still taking a racial character.
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It further cites that the Wealth Inequality Reports included
that, I quote:
Since the end of apartheid in 1994 top income shares have
increased considerably in spite of several reforms
targeting the poorest and fighting the segregation
heritage. Race is still a key determinant of differences
in income levels, educational attainments, job
opportunities and wealth.
Accordingly, the same review made the determination that
comparatively South Africa remains the most unequal society in
the world with the wealth share of the top 10% receiving two-
thirds of national income while the top 1% receives 20% of the
national oncome in 2014.
While we acknowledge the following BEE challenges that relates
to ramification, there is still a shortage of black
industrialist in the country. The next step of development of
the BBBEE should be about grooming more black industrialists.
The shortcomings on the site of implementation has made the
BBBEE not to progress very well in terms of ownership and
management despite many companies claiming to have employment
policies which they were supposed to implement strictly. This
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is because there is no willingness on the part of the majority
of the white-owned companies to come to the party in order to
play their role in ensuring that there is inclusivity in the
economy. Due to the fact that it is not enforced mostly in
some of the corporates, those corporates don’t do it. There is
no sense of willingness as one has indicated especially if
they don’t have transformation at their heart or do it but not
to effect meaningful change. Most corporates would either
focus on the enterprise and supply development pillar by
supporting training initiatives for small, medium and micro
enterprises, SMMEs, or rolling out enterprise development
programmes. However, SMMEs don’t survive those programmes but
revenue generation. Here the corporates will be able to tick a
box and get the BBBEE points. Corporates also focus on the
socioeconomic pillar through supporting the nongovernment
organisations, NGOs.
Under the enterprise and supply element measured entities are
still not able to transform the value chain by developing
sustainable black-owned entities utilising the supply
development and enterprise developments aspect of the element.
Whereas supply or enterprise development focusses on creating
sustainable black-owned entities, most initiatives are
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increasingly implemented through a third party intermedia with
less focus on the needs of the beneficial.
One notes that the verification agencies are still
predominately white and could be questions on how effectively
they do verify to the benefit of the previously marginalised.
The report shows a slight change in the levels of
transformation with the overall black ownership reflecting
only 4% increase from 25% black ownership in 2018 to 29%. The
report found management control to be sitting at 39% overall
and JSE listed entities bought control at 43,6%, where males
constitutes 23,08% and the female 20,5%. Only 3,3% of entities
listed on the JSE are 100% black owned which was 1,2% in 2018
and 1% in 2017. The three least performing sectors on
ownership in 2018 were AgriBEE with 11%, financial sector with
21,64%, construction sector at 48,3%, transport 40% and
forestry 33% showing relatively good progress.
In 2019, women ownership remains at around 10% on average
across sectors at subproperty 11%, in transport was 12%, in
tourism was 14% and 17% in information and communications
technology, ICT.
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Some of the successful BBBEE projects one can note in the Free
State province is Grain Field Chickens which was addressing
around the issues of ownership and management.
On the employment equity the important positions at the
workplace are still occupied by those who were previously
privileged. In the absence of the employment equity
legislation the situation might have been worse than the
current one. Employment equity legislation will remain
relevant for as long as the same skilled and unskilled
position remain the reserve of the majority who were
previously disadvantaged.
To illustrate this point, the 2019 and 2020 Employment
Commission reports that only 29% of Africans occupy top
management positions. Out of this 19% were men and 9,6 were
women. Whites made up 67% of top management positions out of
which 54% were men and only 13% were women. At the senior
management level 34% were Africans of which 23% were men and
women only constitute 10%. Whites were overwhelmingly at 59%
of which 49% was for men and only 18% is for women. In
relation to professionally qualify 55% were Africans of which
men constitute 30% thereof. Amongst the skills category 72%
were Africans out of which 33% were men.
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In conclusion, it is our very firm view that it is still way
early to can discuss about whether the legislation still has
relevance. In fact, we are of the strong view that as we
engage in this type of debates we must discuss how best do we
strengthen it because we cannot undo what colonialism has
done, we cannot undo what apartheid has done which spread over
many decades by only trying to do that in a period of less
than three decades. So, BBBEE is more than ever relevant.
Employment equity is more than ever relevant. [Time expired.]
Mr J J LONDT: Hon Chair, Ministers and member, good afternoon.
The moral fable of the frog in the boiling water is up when it
comes to broad-based black economic empowerment and how it was
implemented by the governing party. The ANC is slowly boiling
and burning the South African economy to death with their
policies. And if we don’t get out of the ANC pot soon the
economy will die. As I prepared my notes for the swim I knew
that the ANC Members of Parliament, MPs, like the MEC Mohale
will defend his party and especially that his province was the
corruption capital. He would defend his party and its
disastrous policies by finding every excuse under the sun
except taking ownership of their incompetence in running this
beautiful country. I asked myself how do you convey to voters
that this party cannot be trusted any further to lead?
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As the debate continue however I realised yet again that South
Africans already know that the yellow, black and green party
cannot be trusted. The most recent election results showed
that the citizens of South Africa judge parties based on their
words and their actions. The majority of voters in this
country have already rejected the ANC.
It is well known how corrupt the governing party is. But for
this week I will highlight few phrases and actions that are
generally known or that base repeating. One thing it is
absolutely amazing that two years after we have been going
online and using Zoom, the Members of Parliament, MPs, from
the ANC still do not know how to use the devices properly but
you expect him to run this country or provinces properly. That
should be an indication. We should actually create a
compilation on how you struggle to log on before every plenary
and play that.
Hon Mmoiemang, you say that broad-base black economic
empowerment should be seen as a bread and butter issue of our
communities. It should decrease the gap between rich and poor
yet years after the implementation thereof there are many more
millions South Africans that are unemployment and the gap is
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even bigger. You state that it should open opportunities for
more South Africans yet it is only the same ANC elite that
benefit time and time again.
The member of executive council, MEC, Mvoko you said that
Cyril Ramaphosa was settled in establishing broad-based black
economic empowerment. But who do you think profited the most
when the majority of South African won’t earn in their
lifetime while his brother-in-law spend on buying cattle from
him? There is something wrong. There is only a few that
profit.
Hon Pillay, you lament the fact that broad-based black
economic empowerment is associated with corruption, but it is
your doing - it is your party. You cannot even unscrew a light
bulb without trying to get a multimillion rand tender from a
comrade. The problem is now with a shambolic management of
Eskom light bulbs often become obsolete. On Pillay, you
invited people to come forward with any evidence of corruption
and malpractice. I don’t know maybe you were off work or you
were away visiting the Guptas for a few months. Please,
provide me with your email address so that I can just send you
the Zondo reports if you are willing to listen or read it. You
asked what the DA is doing.
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With us as the hon Boshof has mentioned. Within the next few
weeks the DA will start the process to introduce a private
members Bill termed the social impact Bill. It is time to
unite behind workable solutions. Those ANC members not aligned
with the radical economic transformation faction or the red
party, you don’t have to work with us. But all other parties
that want this country to succeed, that want to address the
root causes of inequality and opportunity across South Africa,
unite behind the DA policy.
Hon Du Toit, it is an important debate that you brought in
today. The question is, will you support the DA’s solution?
Our socioimpact Bill will amend sections and introduce
criteria based on sustainable development goals. This will
better serve social and economic development for the most
vulnerable people in the country.
In conclusion, Hon Deputy Minister Dlamini, you correctly
state that you cannot ignore history. Your children and your
grandchildren will hang their heads in shame. History will
judge the ANC harshly. Deputy Minister Dlamini, history will
judge you harshly. You have an opportunity to be better. You
can start by supporting this DA policy. Your president has
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already started supporting our policies. It is time you do
that too. I thank you.
Mr M RAYI: Thank you very much hon House Chairperson, hon
Chairperson of the NCOP, hon members, special delegates, MECs,
permanent delegates, Deputy Minister of Small Business
Development, Deputy Minister of Trade Industry and
Competition, Deputy Minister of Employment and Labour.
This debate was brought to this House by the FF Plus, a party
that is a relic of our painful apartheid past provides an
opportunity for a country to reflect critically on the road we
have travelled together as South African nation since the
democratic gate through was achieved in 1994 after centuries
of struggle against colonialism and apartheid.
We may not fully understand the motive of the FF Plus for
bringing this debate to the House but we suspect that this
party of unashamed white privilege is sending a signal to its
consecutive right wing constituency that it has the courage to
broche any topic even the ones that open old wounds and
inflict the pain of bitter memories of apartheid in many of
us.
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We owe it to our forbearers to advance the struggle for an
equal South Africa. Our gallant fighters against unequal South
Africa many of whom sacrificed life and will suffered bullets,
teargas and dogs being set on them in Sharpeville and KwaLanga
in March 1960.
For us to be where we are today, they would not rest in peace
if the struggle fails. When we took the bait from them, we
committed that we would transform our country in its entirety.
When we adopted the Constitution of the Republic of South
Africa on the 8th of May 1986, one of our aims was to
establish as spring broad from which to perpetually transform
our society using the instrument of legislation in order for
all South Africans to enjoy the fruits of freedom, liberty,
justice, humanity and equality.
I want to emphasize that section 9 of the Supreme Law of the
Republic of South Africa which all of us here have taken an
oath of affirmation to abide by, affirm the centrality of the
full and equal enjoyment of all rights and freedoms. Our role
as law makers in this regard have a mandate to take
legislative and other measures designed to protect or advance
persons of categories of persons disadvantaged by unfair
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discrimination in order to make the stated goal of equality
more meaningful.
A Constitution does not enjoin us to strive for equality only,
it goes further and unambiguously prescribes to us as to how
to carry out the instruction. It says laws must be made to
ensure that former and the de facto apartheid reminisce are
dismantled and buried.
Back in 1998, we started that process, we developed
legislation called the Employment Equity Act 155 of 1998. This
is one of the laws that give the children and grandchildren of
H.F Verwoed and P.W Botha sleepless nights.
Employment Equity Act is a labour law that its intention is to
promote equity in the work place. This law is intended to
ensure that all employees receive equal opportunities as the
Freedom Charter says to enter trades and careers of their
choice. This is a piece of legislation that is aimed at
ensuring that employees are treated fairly by their employers.
Hon House Chairperson, people who are opposed to the
Employment Equity Act are enemies of our Constitution, they
are enemies of our democracy who long for as well racist South
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African govern that reign the country bankrupt with racist
discriminatory laws, apartheid laws deemed the calm against
humanity by the United Nations promoted one particular race
group and suffocated and trampled upon and destroy others.
People who are opposed to the redress of the passing balances
must rethink the implication of their reactionary ideas. Hon
House Chairperson, many people have forgotten that the first
people who captive affirmative action and improvement of the
career opportunities for certain groups of people were the
colonialists and apartheid architects.
In fact, we have to stand back and admire those people because
when they implemented this unjust laws, they were very clear
in their minds about the long term outcomes.
In colonial apartheid South Africa, we have laws like the
Industrial Conciliation Act 11 of 1924 which provided for the
job reservation and laws like the Minimal Wage Act of 1925
that promoted employment of white people only.
There was even a law that allowed farm owners to beat farm
workers and tenants called Native Service Contract Act. But,
today, we are told we must not pass laws that reverse all the
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gruesome, vicious and brutal laws because some among us are
still comfortable with them and are rejecting the ones that we
are coming up with which promote justice, fairness and
equality.
Secondly, like the biblical story of Israelites teaches us
that we cannot go back to Egypt, the land of the Pharos even
though this transformation and democratisation path is long
and hard.
Fellow South Africans, the fact that we are entering this
debate is a sign of maturity of our democracy and the strength
of the Constitution of our institution such as Parliament.
Hon members, this theme has brought this debate never even
allowed us to speak about the illegitimate rights as black
workers when they [Inaudible.] this country with an iron fist.
They put many of us in jail and many freedom fighters died. It
is a pity that our laws do not bide in a manner which they
should but the comforting part is that we continue to amend to
ensure that we realise the intended outcomes.
As we speak, the employment equity is being amended. We have
been processing it in the select committee, we have just
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adopted the committee report on Tuesday 22 March 2022. We hope
that the NCOP plenary will pass it in the next term as today
is our last plenary session in this first term.
Hon House Chairperson, when we are doing something that is
right, equitable and just, you dare not hesitate because
hesitation perceived by the enemies of progress and inclusions
as an opportunity sow doubt and discall. That is what the FF
Plus, its alley white cousin the DA, their civil society such
as the Institute for Race Relations are trying to do. They are
trying to scare South Africans. They allege that the
Employment Equity Amendment Bill will damage our country’s
chances of attaining higher rates of growth and lowering the
rate of unemployment if implemented.
Hon members, we have to admit that the pace of transformation
in the labour market has been regrettably slow. Employers were
given powers and authorities to implement our employment
equity laws in their sectors but most of them have failed
dismally. We must commend the department for bringing the
Employment Equity Amendment Bill to Parliament over a year
ago.
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This Bill will have to fast-track the employment equity and
fair representation of our people in the work place. Those who
have not heard of our splendid work in our select committee
will wake up and only see dust.
South African government does not operate like the Afrikaner
broederbond which was a secret, exclusively white mil
organisation in South Africa which was dedicated to the
advancement of the Afrikaner interest when they were at the
summit of their powers, all the pausing government and some
private companies went to broedebond members, particularly
those with the ideological commitment to separatism.
The electoral system itself was manipulated to reduce the
impact of the immigrant English speakers. It is this legacy
that the Employment Equity Amendment Bill that is before this
House seeks to undo. It is also, the same legacy that the FF
Plus, DA and their fellow travellers are seeking to present.
The ANC government seeks to be transparent democratic
developmental state. Scholars describe the developmental state
as one that is more independent or autonomous, political power
as well as more control over the economy. A developmental
state is characterised by having strong state intervention as
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well as relatively exclusive and extensive regulation and
planning. The developmental state is the opposite of a
predatory or weak state.
By the way building a developmental state is the objective
that binds almost all the hon members of the political parties
represented in this House not only those of us who are from
the ANC.
Hon House Chair, I just want to indicate that in the fourth
term the DA in the NA supported the Employment Amendment Bill
of 2012. The DA member after the NA, MP Sej Motau after the NA
adopted the Bill he was then moved from that Employment Labour
Committee because they said as a DA spokesperson for labour
failed to properly execute his duties and his poor performance
led the party to wrongfully vote for the employment equity as
well as the BBBEE Bill and they are trying to arrest the
situation when the Bills went to the NCOP but they dismally
failed.
Currently in all committees when you talk about the BBBEE or
labour laws, you find that it could be coincidental that you
don’t see any blacks in those committees especially Africans.
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They made sure that since then those committees consist of
only whites. Whether you’re talking about Employment and
Labour Committee you find that their representatives are two
whites, you go to the trade and industry, you find that there
are two whites but they also made sure that there are no
blacks in the select committee because they say MP Sej Motau
disappointed them.
This is the reason why Lindiwe Mazibuko was taken out because
Madam Zille was very furious when the NA, DA Caucus supported
this Bill. Thank you very much.
The DEPUTY MINISTER OF EMPLOYMENT AND LABOUR: Thank you very
much, hon House Chairperson. Allow me, hon House Chair, to
acknowledge the presence of the Chairperson of the NCOP, hon
Masondo, allow me also to acknowledge the Chief Whip of the
Majority Party in the NCOP, hon Mohai, let me acknowledge all
my colleagues, Deputy Ministers who are here present on this
platform, all MECs from various provinces of our country, and
all the permanent delegates to the NCOP, hon members of the
NCOP ...
IsiZulu:
... sanibonani,
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Setswana:
... dumelang.
English:
Chairperson, let it be known that, when we pass pieces of
legislation, we are advancing our democracy, we are giving
content to freedom, the laws that we formulate and pass must
empower the less empowered, those who are less privileged,
those who are marginalised and people who are discriminated
against at workplaces, hon members. What freedom they talk
about when there are people in workplaces who despite their
qualifications, skills and experience got jumped by others in
terms of outward mobility at work, and that is done, most
often than not, only because of the colour of their skin.
There is no caring and compassionate government that can fold
its arms and watch, we’ve got to do something, something has
got to give, hon members. I must say that, the promulgation of
the Employment Equity Act intended to provide for employment
equity in the world of work, solely needed due to the lasting
effects of apartheid and other discriminatory laws and
practices in the employment and occupations within the labour
market.
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This was done in order to promote constitutional rights of
equality in the workplace and to strengthen the exercise of
true democracy, eliminate unfair discrimination in employment,
and to give effect to the constitutional principles which
underpins the founding of the democratic Republic of South
Africa. Now, ladies and gentlemen, hon members, our laws are
as a result of both our past experiences and our present
condition. The Employment Equity Act was formulated and
enacted in 1998 because our past experiences demanded so. We
are today amending this Act because present conditions of
circumstances are leading us exactly to do that.
Setswana:
Motlotlegi Modulasetilo, ka Setswana ra re, molelo o fisa
baori. Ke rata go e boeletsa, ka Setswana fa re bua ra re,
molelo o fisa baori ba ba tsaletsweng, ba golela, ba
tsofalela, ba be ba šwela mo khumanegong, ke bone b aba itsing
tshotlego. Rona, ga mmogo le baagi ka kakaretso, segolo bogolo
batho b aba ntsho, re tshwanetse go mekamekana le kgwetlho e
re e boning e ...
English:
... because for the past 24 years, after the promulgation of
the Employment Equity Act, the pace of transformation in the
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labour market has been frustratingly low, with some resistance
from other quarters, and you could hear for yourselves from
this debate today from those who are actually resisting this
change, and as with the Broad Based Black Economic Empowerment
formation, we have put in place processes and requirements to
monitor and evaluate the progress of employment equity in the
workplace.
Now, hon Baartman, I think that we must agree with hon
Nkondlo, who put it succinctly on our chat now that, we should
just go to the Western Cape to witness the levels of
inequality for more than 10 years of the DA rule, I think it
is reality that, the levels of inequality in terms of the
discrimination of the DA rule against black people in the
Western Cape, it’s appalling.
The latest employment equity statistics, hon members,
contained in the 21st Commission for Employment Equity Annual
report of 2020-21, indicates that we have not addressed past
imbalances to uplift the most vulnerable groups in our
economy, which are Africans, women and persons with
disabilities. Hon MEC Mvoko, from the Eastern Cape, already
alluded to some of the figures, and I must say that, it’s a
fact that, top and senior management level of Africans, only
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accounted to 15,8% and 24,7% of all positions respectively,
whereas whites occupied 54% and 52,5% of all positions at both
top and senior management level.
We are not being racists when we come up with these figures
because, figures don’t lie, hon Boshoff, when we highlight the
obvious. In relation to women representation, hon members,
they only accounted for 24,9% and 35,7% of all positions at
top and senior management level respectively. So, hon Boshoff,
this is reality, it’s not fabrication and it’s not fiction. Of
great concern is that, representation of persons with
disabilities remained around 1% of the total work force. So,
it is evident from the data that, self-regulation by employers
to achieve the objective of this Act, has simply not worked
before, hence the urgent need to review the legislation and
regulation.
As we are aware, hon House Chairperson and hon members, the
Employment Equity Amendment Bill is still waiting to be
passed, and we are hopeful that the amendment will help in
effecting the much needed transformation in the labour market
and society, which is still marked by historical legacy of
colonialism, apartheid and patriarchy. Hon Boshoff, this Bill
provides for powers of the Minister to set the target on the
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sectoral basics after full consultation with all stakeholders.
It also bursts noncompliant employers from doing business with
the state agencies, and I think that this one we have to
enforce at all costs.
At operational level, hon members, the department is ready to
implement this amendment upon approval by Parliament and
enactment by the state President. We are at an advance stage
in relation to sector stakeholder engagement for the setting
of sector specific employment equity target. The ITC
development processes also underway to enable the automation
of the issuing of employment equity compliance certificate for
the convenience of employers. The Employment Equity Act is
still relevant, hon members, and much needed, in order to
allow everyone fair and equitable double access, here we are
talking under normal circumstances, regardless of race, gender
or disability in the labour market.
We are saying this because, the situation is not normal,
therefore, we need to continue being biased towards those
historically disadvantaged and those historically marginalised
because all is not well, hon members. I must hasten to say,
hon De Bruyn, from FF Plus, it is the considered you, of the
Ruling Party, the ANC, black, green and gold, not yellow and
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gold or the colour that you have mentioned, black, green and
gold, that employment equity and Broad Based Black Economic
Empowerment legislation, regulation and codes of good practice
remain highly relevant in a society and economy.
This still bears the imprint of apartheid, discrimination and
colonial exploitation, and such measures, the data have shown,
if we have to go back to it that, we still need to open up the
economy and the workplaces, to provide fair and equal access
for all, and in the work of the Broad Based Black Economic
Empowerment, BBBE, Commission, to bring into being, “an
inclusive economy for all, together.” Our laws from
conceptualisation, end point of checks and balances.
Now many have said that, there are those who say that we are
giving the Minister, like hon Boshoff, who said that we are
giving the Minister uncharted powers, and there are also the
ones who say that this Minister would be irresponsible, he
will just go to a particular sector and indicate that the
target is this much, and off he goes, our Minister, shame ...
Afrikaans:
... soos ’n mal hasie ...
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English:
... and that sector will just have to comply, failing which
it will be punished, really, hon members? This is absurd, it
is just so bizarre, it is ridiculous, it is so embarrassing, I
can’t actually describe it. I wonder, when will the DA and the
FF Plus stop their exaggeration of facts and their
misinformation. Hon members, I must say that, both the DA and
the FF Plus are actually blowing everything out of proportion,
and all the time they do this, and I will not ask, how many
spare codes they have, because I think I have already figured
it out on my own.
Also, I must say that, both the DA and the FF Plus must
listen, hon members, and they have to listen carefully that we
develop laws for this country. We do that meticulously and we
do proper job, and the pieces of legislation that we craft are
for a just cause, they promote fairness. To hon Boshoff, this
is the fact I want to say to you, and that you need to know
that, employers have to steer their own employment equity
targets in their own employment equity plan, through
consultation with their employees and trade unions. So, it’s
not a story, it’s not like a fiction, Muvhango, they have to
consult their union.
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We are no longer going to turn a blind eye, we must say, to a
failure to perform this task. We are now going to watch this
process with an eagle’s eye. We shall be proactive, and I am
sure that the Minister will set sectoral targets and the
roleplayers in the sector shall be interacted with in this
process. We will be holding workshops sooner rather than
later, we will make it happen, hon members, and if it is not
happening, and if we are not satisfied, we will intervene.
We will start by making those justifiable reasons as to why
targets have not been set or met. ... [Interjections.] ...
Thank you so much. If justifiable reasons are not there, we
are going to still work together to ensure that targets are
set and they are met. If all fail, consequences will then have
to follow, and in this way, we will be doing justice to the
aspirations and the needs of all the South Africans.
So, the debate, hon Chair as I conclude, must change the
narrative to make these measures more effective, pretty and
contribute to growth by unleashing the potential of all the
people of our country, not just a selected privileged few,
based on their colour of their skin. I thank you, hon House
Chairperson and audience. Thank you.
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Afrikaans:
Mnr S F DU TOIT: Agb Voorsitter, Soos verwag het die ANC en sy
vennote op die appelkar van voorheen benadeelde persone,
ongeregtighede van die verlede, sogenaamde ontneemde
geleenthede ...
The HOUSE CHAIRPERSON OF THE NCOP (Mr A Nyambi): The next
speaker is hon Du Toit.
Mr S F DU TOIT: I have already started.
Afrikaans:
Agb Voorsitter, Soos verwag het die ANC en sy vennote op die
appelkar van voorheen benadeelde persone, ongeregtighede van
die verlede, sogenaamde ontneemde geleenthede en
verontskuldigende dog beskuldigende stellings geklim.
Hulle skuil agter hierdie beskuldingings van sogenaamde wit-
monopolie-kapitaal en selfregverdiging, om hul eie
tekortkominge weg te steek. Skynheilig!
Suid-Afrika se ekonomie is groot genoeg dat alle rassegroepe,
eerlik kan besigheid doen, in ’n ekonomiese omgewing wat nie
deur die staat beheer en beperk word nie, ’n omgewing waar
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daar nie uitsluiting op gronde van ras is nie en waar gesonde
besigheidsrpaktye geleenthede skep en innovasie prikkel.
English:
Hon Tau, hon Mmoiemang, hon Pillay, hon Rai, hon Maloyi, is
broad-based black economic empowerment and equity legislation
still relevant after almost three decades of ANC rule and did
it yield the results the ANC hoped it would? No. you confirmed
it with the figures that you presented today. Did affirmative
action provide ANY economic stability in the country? No. Did
South Africa as a whole, benefit from the race-based Job
reservation legislation? No. Who benefited from this
legislation? Only the politically connected elite benefitted!
Hon Rayi, you confirmed today that you as the ANC avenged
yourself through race-based legislation instead of acting in
the best interest of all South Africans. Hon Londt, you asked
if we, as the FF Plus, will support the DA’s proposed Bill,
just minutes after your colleague, hon Boshoff, said in no
uncertain terms that, and I quote: “The DA is committed to
real black economic empowerment.” This is after the DA
assisted the ANC to vote the current affirmative action and
BEE legislation into effect. The FF Plus is constant in our
approach.
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Afrikaans:
Ons draai nie ons seile na die wind nie; ons is beginselvas en
ons glo in gelyke geleenthede vir almal, nie net vir sommiges
nie.
English:
If there is one good thing that came from race-based
employment legislation, it is the fact that the currently
disadvantaged minority ...
Afrikaans:
... die huidige benadeelde geroepering –
English:
... individuals that don’t benefit from BBBEE and affirmative
action still survive and adapt.
Afrikaans:
As ons na jong Suid-Afrikaners kyk wat die toekoms van die
land is, huidige benadeelde persone, kan ons onnself die vraag
afvra: Watter toekoms is daar vir hulle? Watter voorbeeld word
vir hulle gestel? Watter leuns word aan hul vertel? Watter
hoop word gebied? Die antwoorde voorsitter is verblydend!
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Ons het die afgelope 28 jaar nie onder die juk van hierdie
rasbehepte regering geknak nie; ons oorleef steeds! Ons glo
nie die leuns wat oor ons en van ons vertel word nie; ons is
hier om te bou, te oorleef! Ons is die hoop!
Baie jongmense vra gereeld, met ’n mate van vrees, watter
toekoms daar vir hulle is, hoekom hul moet presteer, hoekom
hul die morele hoëgrond moet behou, hoekom hulle nie met die
massas, die retoriek en aanvaarbare leuns meegesleur mag word
nie? Die antwoorde voorsitter is voor die hand liggend.
Jy as jong man en vrou het reeds bewys dat swart ekonomiese
bemagtiging. Jy het daar bo uitgestyg. Hierdie wetgewing maak
dat jy net meer innoverend in jou denke en optrede is!
Jy is die verskil in jou gemeenskap, jy is die een wat jou
studierigting verander het, aangesien die regering jou nie jou
eerste keuse gegun het nie, jy het, ten spyte daarvan ’n
sukses van jou lewe gemaak.
Jy is die een wat as entrepreneur kos op die tafel sit, werk
skep en ekonomiese groei verseker, nie net vir sommiges nie,
maar vir almal. Iets waarin die ANC-regering klaaglik misluk
het!
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Jy is ’n baken van hoop, jy is die bewys dat persone, ’n
groepering, ja selfs ’n regering se haatlike afkeur, jou nie
onder kry nie, nie bepaal wie jy is nie, want jy ag sy opinie
nie as bepalend van jou lot nie.
Ek is trots om deel van die VF Plus en ’n groepering te wees,
wat uitgesproke teen die regering se uitsluitende en
diskriminerende wetgewing is! Ons sal ons nie laat onderkry
nie! Gelyke regte, gelyke geleenthede, onbeperkte sukses met
vertroue in God! Dankie.
The HOUSE CHAIRPERSON (Mr A J Nyambi): That conclude the
business of the day. Allow me to thank Deputy Ministers, MECs,
special delegates, Salga representatives, all of them for
availing themselves for this very important debate.
The Council adjourned at 17:57.
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