PLAY THE GAME
Charter will now attempt to prescribe to investors exactly how BEE transactions should be financed will do little to fill investors with enthusiasm.
Previously, sanctions would be imposed by the Department of Mineral Resources only if there was noncompliance with the Mining Charter and the Mineral and Petroleum Resources Development Act. The new charter introduces a deeming provision in that if you fail to comply with certain obligations in the charter, then you are deemed to have also breached the act.
Although this is concerning, the determination of the legal nature of the Mining Charter is key to whether the minister has the authority to elevate a breach of the Mining Charter to that of a breach of the Mineral and Petroleum Resources Development Act.
The provisions of the act obliging the minister to “develop a broadbased socioeconomic empowerment charter” clearly classify a charter in the category of guidelines or policy. Whether or not a charter may be elevated to the status of subordinate legislation remains undecided by our courts.
Industry has 30 days within which to submit written representations to the minister and, one hopes, this will then signal the start of the consultation process between industry, labour and the Department of Mineral Resources.
Otherwise, the future for Sassuolo is less complicated: they can simply find another goalkeeper.