Trusts welcome support for their ownership schemes
A COLLECTIVE of six of South Africa’s broad-based black economic empowerment (B-BBEE) trusts yesterday welcomed Department of Trade, Industry and Competition (DTIC) Minister Ebrahim Patel’s public support for their broad-based ownership schemes (BBOS).
Kagiso Charitable Trust, Mineworkers’ Investment Trust, HCI Foundation, Women’s Development Bank Trust, Ditikeni Investment Trust and Wiphold Trust have been engaging with the government for the past 24 months to have their status formally recognised under current (B-BBEE) legislation, and to have this confirmed by the DTIC’S B-BBEE commissioner.
On Friday, Patel stated there was wide agreement that employee ownership schemes where shares vested in the names of individuals constituted genuine black ownership.
He was quoted as saying: “Everyone agrees that (they) fall squarely within the definition of BEE.
“On the matter of broad-based trusts that hold equity and their status, I think that these are the pioneers of BEE and should be recognised appropriately – for example, companies such as Kagiso.”
Speaking on behalf of the six trusts, Mineworkers’ Investment Company chief executive Mary Bomela said they welcomed Patel’s comments, which went some way to put an end to the uncertainty around the status of the pioneering B-BBEE trusts.
“We urge Minister Patel to issue a public notice soonest regarding the interpretation of the code as the continued regulatory uncertainty has had a negative impact on their current and future business prospects,” said Bomela.
She said the trusts had always regarded themselves as being fully compliant in terms of current B-BBEE legislation, and in terms of Statement 100 of the amended codes of good practice.
“This applied particularly to the status of our BBOS, which have been through rigorous scrutiny and verification
“This is excellent news for our trusts and their more than 642 000 beneficiaries, and we eagerly await publication of an announcement to this effect from the DTIC,” said Bomela.