PPF Disappointed With State Organs Failure To Legally Comply With Section 13G Of BBBEE Act & Calls For The AG To Audit BEE Compliance


The Progressive Professionals Forum (PPF) has read with disbelief the Broad-Based Black Economic Empowerment Commission annual report published on the 28th July 2020.

Our greatest concern is that the report shows a 1% (43%: 2018 – 42%: 2019) decrease in the number of submitted compliance reports by JSE listed entities and 5% (10%: 2018 – 15%: 2019) increase by organs of state, with the majority of measured entities still failing to comply with section 13G of the B-BBEE Act.

It is disappointing that organs of the state which should be the benchmark for black economic empowerment implementation, compliance with laws and Government policies has a dismal 15 % compliance or 43 entities in total. If this was a school report, the learner would have failed and if it was in the private sector, the manager would have forfeited his or her performance bonus.

The PPF is perturbed by observations contained in the report which highlights the fact that the country as a whole is not able to measure performance and once again the lack of consequence management for non and poor performance.

“What frustrates the PPF more is that not only does consequence management not exist in organs of state, in this particular instance both the BB BEE Commission and the country at large have not seen a whiff of a report from the other 85 % organs of state.” says PPF President Kashif Wicomb.

“It is of grave concern to us that organs of state have blatantly ignored Section 13G of the BEE Act which compels them and JSE listed companies to submit BEE reports. Equally concerning, organs of state may be not implementing broad-based black economic empowerment and preferential procurement. We have no means of measuring the implementation thereof. We will certainly not achieve inclusive economic growth; a transformed economy; a growing SMME sector if we are not able to measure performance and track targets. ” concludes PPF President Kashif Wicomb.

The PPF calls for the B-BBEE Commission to enforce the adherence to section 13G of the B-BBEE Act by all organs of state and JSE listed companies. The PPF recommends that organs of state’s BB BEE compliance must be completed by the Office of the Auditor General and non-compliance must be reported in the AG’s report.

The PPF has activated it’s Economic Transformation and Finance Multi-Disciplinary Team convened by Mpumelelo Zikalala to critique and analyse the BB BEE Commission report with clear recommendations to be considered by the PPF NEC in August 2020. The PPF Economic

Transformation and Finance Team shall convene a virtual imbizo on Tuesday 4 August 2020 targeting patriotic entrepreneurs and experts to dissect the report. The PPF will thereafter formally engage with the BBB EE Commission and responsible Executive Authority on PPF- initiated strategic plans to advance economic transformation imperatives.


For media enquiries please make contact with Sithembiso Kubheka (PFF Secretary General) on 083 353 5124 or Kashif Wicomb on 082 415 6634.

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