JSE urged to deal with BEE compliance failings: only one in ten state firms submitted B-BBEE reports
The commission that monitors empowerment has called on the JSE to ensure that companies conform as annual reporting on compliance with legislation is now a listing requirement. A Business Day report says the Broad-Based BEE Commission called on the JSE to deal with non-compliance by charging penalties for the lack of disclosure as part of the listing regulations. This, the commission said, will ensure increased transparency in the disclosure of the JSE-listed entities’ ownership structure. B-BBEE priority elements are the key drivers for economic growth, which is needed to tackle the high levels of unemployment rate, the commission said. This week, the commission released its annual report on the national status and trends concerning B-BBEE for 2018. As reported in Legalbrief Today yesterday, the report shows no significant change in transformation, with black ownership in a decline to 25.2% from 27% in 2017. Black female ownership is at just more than 10%, which is down a percentage point from 2017. The study, however, was limited due to low levels of reporting by listed entities.
According to a report in Fin 24 only one in ten state firms submitted B-BBEE reports in 2018. The B-BBEE Commission released a report on Wednesday on the status and trends of B-BBEE for 2018. It found that only 10 % of state entities and 43% of JSE-listed companies submitted compliance reports as required. In 2017 only 1% of state entities and 51% of JSE-listed firms submitted reports. The submission of reports is compulsory for JSE-listed entities, organs of state, public entities and Skills Education Training Authorities. "This worrying trend of non-compliance is clearly undermining the objectives of the B-BBEE Act", the commission said in a media statement.