Page 20 - Q&A

The BEE Commission further recognises skills development as an absolute
essential element but worryingly note that the Skills Development element
BEE is not creating the pipeline of new black executives due to black executives
rotating from one measured entity to another. The Report continues to indicate
that job absorption and advancement into senior management roles remain
challenging given the low correlation between black ownership percentage
and management control within many companies.

Accordingly, the BEE Commission recommends that the pace of transformation
be improved through strict adherence to the BEE Act and Codes and
enforcement by them of all sanctioning sections contained therein. Seeing as
organs of state and public entities have fallen drastically short of the required
standards in the BEE Act and Codes, the BEE Commission has proposed
that Preferential Procurement as sub-element of the Enterprise and Supplier
Development element, should be made a standing deliverable on their annual
performance plans and that they should be reported on more regularly to their
portfolio committees.
The BEE Commission stresses the fact that measured entities, when considering
Enterprise and Supplier Development initiatives, should implement their
initiatives on an informed basis and with a view to building sustainable black-
owned entities. In respect of Skills Development, the BEE Commission advocates
for an improvement in quality and transparency with emphasis on the nature
and quality of training and not just quantity.
From this Report, your suspicions are confirmed and shared by the BEE
Commission, which acknowledges that transformation so far has been too static
and that the priority elements have not had the intended impact. What can
therefore be taken from the Report is that although the priority elements have
not yet had the desired impact, government continues to support its focus on
these elements, and will focus more on their enforcement and implementation
to achieve the intended impact, which in turn should be a warning for all
suppliers that have not actively focused on these priority elements in their
BEE planning.

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