Registered users can save articles to their personal articles list. Login here or sign up here
 Registered users can save articles to their personal articles list. Login here or sign up here

Dti withdraws hotly contested BEE code related to charities

Decision comes after several stakeholders express concern.

JOHANNESBURG – The Department of Trade and Industry (dti) on Wednesday said that it has withdrawn the hotly contested and highly emotive proposed changes to the broad-based black economic empowerment (BBBEE) codes dealing with socio-economic development.
This comes two weeks after the department issued a press release defending the proposed changes. Under the revised codes, businesses would only receive points towards their BEE scorecards if socio-economic development spend went to charities with 100% black recipients.
In a statement released on Wednesday, the dti said: “The decision comes after several stakeholders expressed concern that Statement 500 has been interpreted to mean that charities will be adversely affected, resulting in rising anxiety for charity and beneficiary organisations.

“The fact that the dti announced previously that the department will not ‘raise the bar’ and correct any unintended interpretation upon completion of the public consultation period closes on Wednesday, 5 December 2012, has not eased this anxiety. The department therefore concluded that withdrawing the statement immediately would be the most appropriate response.
“In practice this means no change to the socio-economic developments elements,” the statement read.

More stories from Moneyweb
Connett Nthupi

Connett Nthupi

Masthead Financial Planning
Moneyweb Click an Advisor
   No comments so far

Comments on this article are closed.

Latest Currencies

ZAR / Euro

Enter company name or share code:


Subscribe to our mailing list

* indicates required
Moneyweb newsletters


Moneyweb Investor Issue 24

The relative strength of the rand has seen South Africans relax since the cabinet reshuffle and sovereign downgrades by S&P and Fitch. Don't be deceived - this is a self-inflicted wound. In the May issue of The Moneyweb Investor, we take a closer look to see which companies are likely to thrive and which will not, in the post-downgrade world.