This week the Broad-Based Black Economic Empowerment Commission released a report on the national status and trends of B-BBEE-listed companies in South Africa.
The Commission is mandated to monitor compliance and adherence of enlisted organisations at the Johannesburg Stock Exchange (JSE) within the B-BBEE act and report annually according to section 13G.
The report highlighted the following as key findings:
- Only 43 percent of the listed entities submitted their reports in compliance to section 13G.
- Only 10 percent of organs of state adhered to section 13G compliance reporting requirements.
- Eight of government departments that were analysed did not disclose their B-BBEE elements in the annual reports required by section 13G.
- 33 percent of the organisations listed or state-owned analysed did not comply with submission timelines for section 13G.
- Not all certificates issued by the B-BBEE verification agencies show the targeted scores against the actual scores.
- Some of the annual reports were submitted prior to the introduction of Compliance Matrix, and it was not possible to access the level of transformation at a broad level as the demographics of board of directors was not disclosed.
- 36 percent of section 13G entities submitted compliance Matrix forms without reflecting gender, race, ages and geographical locations.
“From the section 13G analysis we were not able to quantify the number of youth that are in senior management or serve on boards of listed entities and organs of state due to inadequate disclosure of demographic information,” said the Commission.
The report states that there were no noticeable movements in boardroom representation on Johannesburg Stock Exchange (JSE) organisations, with the following still remaining:
- 61.61 percent of JSE listed entities had white board members.
- 38 percent were foreign nationals.
- 21.63 were black males.
- 16.76 were black females.
“The outcome of the compliance analysis for 2018 period still shows a snuggling pace in transformation with priority elements being barely achieved. Interventions are required to increase compliance levels in these priority elements to stimulate economic growth,” concluded the Commission.[Image – CC 0 Pixabay]