Latest news with #Broad-BasedBlackEconomicEmpowermentAct
The Citizen
29-07-2025
- Politics
- The Citizen
ActionSA opens corruption case against Polokwane mayor
POLOKWANE – The Limpopo police confirmed that a case of alleged tender irregularities has been registered against the Polokwane Mayor, John Mpe and other senior officials at the Polokwane Municipality by ActionSA. The provincial police commissioner, Lieutenant General Thembi Hadebe said a case was opened on Monday at the Polokwane Police Station and that it relates to alleged violations of the Preferential Procurement Policy Framework Act and the Broad-Based Black Economic Empowerment Act for contracts awarded between January, 10, 2023 and July, 28, 2025. The case was opened by ActionSA's provincial chair Victor Mothemela, alongside fellow party members. 'We will not stand by while politically connected individuals squander the economic future of South Africans for the benefit of foreign interests,' an ActionSA statement read. 'Where there is smoke, there is fire. As the leadership of ActionSA, we have decided to open a criminal case of corruption against John Mpe and his entourage,' Mothemela told party members. Mpe is expected to provide a comprehensive report to the Department of Cooperative Governance, Human Settlements and Traditional Affairs (Coghsta), today, regarding allegations of tender kickbacks, political patronage and financial maladministration in the city's municipality. He has labelled these claims as politically motivated smear tactics, denying wrongdoing and emphasised that foreign-owned companies lawfully participate in procurement processes if compliant with tax and legal requirements. The Coghsta MEC, Basikopo Makamu, told Polokwane Observer on Friday (July 25) that he wrote to Mpe inquiring about the validity of municipal financial statements being circulated on social media. Read more: Polokwane mayor faces deadline over tender kickback claims Meanwhile, Hadebe confirmed that due to the gravity of the allegations, the case opened by ActionSA has been referred to the Hawks for further action. On Friday, the EFF called for a full investigation, including possible intervention by the Special Investigating Unit (SIU) and called for the Limpopo Premier Dr Phophi Ramathuba to place the Polokwane Municipality under administration.
IOL News
23-06-2025
- Business
- IOL News
How international pressure fast-tracked policy changes that prioritise foreign profits over local ownership
President Cyril Ramaphosa suggests Starlink as a solution, which raises questions about the underlying motives, says the writer. Image: Jonathan Raa/NurPhoto/AFP On May 21, we witnessed an embarrassing scene of the presidential delegation in the Oval Office. Patrick Gaspard, a former American ambassador in South Africa under the Barack Obama administration, explained that Trump had turned the meeting with Ramaphosa into a "shameful spectacle" and "savaged him with some phoney snuff film and brutal rhetoric" (Gaspard, 2025). This was purportedly done to remedy the very high already present tensions between the US and South Africa that have escalated since the Trump administration took office. Interestingly, just 48 hours later, Communications Minister Solly Malatsi gazetted a new direction of policy to ICASA, permitting Starlink and other foreign investors to "harmonise" current ICT sector requirements (Department of Communications & Digital Technologies, 2025). The regulations previously demanded that at least 30% of shares be held by historically disadvantaged individuals. Current ICT Sector Rules Due to the expansive and strategic nature of the telecoms sector – controlling how South Africans communicate, access information, and participate in the digital economy – the previous requirement for foreign telecommunications licensees to sell 30% of their local subsidiaries to historically disadvantaged groups ensured that black South Africans didn't just use these services, but owned and profited from the infrastructure serving their communities (Broad-Based Black Economic Empowerment Act, 2003). ICASA's Role ICASA is the regulator of South Africa's telecommunications sector, essentially the gatekeeper that licenses all companies wanting to provide internet, phone, or TV services (Independent Communications Authority of South Africa Act, 2000). Because they enforce the ownership requirements, they're the ones who need to ease these regulations to make room for Starlink and other prospective foreign investors. As the Department of Communications & Digital Technologies noted, this wouldn't just benefit one company but would apply to all ICT companies, including those from China and the Middle East (Department of Communications & Digital Technologies, 2025). Equity Equivalent and Ownership 'Workaround' The 'sidestep' or 'harmonising' commonly referred to speaks to Equity Equivalent programmes – this is when companies are permitted to avoid giving up ownership but instead can contribute through community projects worth the same value as what that 30% ownership would have been. This usually takes the form of skills and training development, job creation, and supporting black-owned suppliers (Department of Trade, Industry and Competition, 2019). In 2019, the South African government piloted this approach through the automotive industry, where BMW, Ford, and Toyota did not have to give up ownership but instead committed to ploughing back through skills development and funding for black-owned suppliers (Automotive Industry Development Centre, 2019). Essentially, companies keep their investments, shareholding, and decision-making power, but offer communities the equivalent value of what they would have given up in ownership. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Aphelele Mtwecu, a proud member of the Activate Change Drivers Network and a2016 Activator. She is a content writer, activist Image: Supplied Contentions of Timelines and Due Processes So, how exactly does a presidential delegation meeting occur on Wednesday and have a new policy gazetted by Friday? The credibility of how this gazette played out is questionable. According to reports, the delegation included three other officials who were familiar with what Starlink would bring to the South African economy, granted this wasn't a spontaneous engagement. However, here is the problem: South Africa, with all its flaws, values and upholds consultative processes. A major economic policy shift such as this one would normally require public hearings or parliamentary reviews to protect the Republic from exactly these kinds of overnight decisions (Promotion of Administrative Justice Act, 2000). In this matter of harmonising BEE laws, regardless of existing contentions, this is an important historical policy that would impact our state of affairs deeply. It is further alarming how these kinds of events occur under the supposed sensitivity of the GNU government, where consensus-building across coalition parties should be central to major decisions. Unless it is the citizens who are blindfolded, and we simply do not know there was a prior agreement between parties to fast-track this change. Pseudo Altruism According to Statistics South Africa's latest general household survey, only 1.7% of rural households had an Internet connection at home in 2023 (Statistics South Africa, 2024). This devastating statistic has become the most compelling reason for the urgency of Starlink's operations in South Africa. As we understand it, Starlink has been piloted in some South African rural communities and has indeed yielded positive results for farmers as well as the education sector. The need is undeniable – rural communities lack the same coverage and access compared to urban areas. This digital divide is real and valid. Currently, technology optimisation is everything, especially in education, and for children to have access to connectivity is critical. But here's my question: out of all telecommunications services globally, can we prove that Starlink is the crème de la crème of satellite coverage? Have other avenues been exhausted before we convinced ourselves we had no choice? And if Starlink had indeed piloted programs in rural areas and seen the benefits, why wouldn't they yield further to South Africa's legislative and broader economic equity by accepting a BEE partner under ICT BEE laws? If rural connectivity was so important to them, why was this condition such a deal breaker? In these cases, material interests and profit margins trump everything else. And that makes me question their philanthropic intent "to save rural communities" entirely. Digital Inclusion* (*Economic Participation Sold Separately) The Department of Communications highlighted a significant issue, emphasising that the policy is not just about Starlink but is intended to address the growing digital divide. However, I do not agree with the methodology. We must ensure that our approach to digital inclusion does not compromise future sustainability. We have identified the need, but here's the broader question: how can you give a society tablets when they cannot even harvest food to sustain themselves and their families? How is this different from any other interventions that have squandered the hopes of our people, only to leave them hanging with false hope and shattered dreams? What's the point of digital inclusion without economic participation? We're essentially saying to rural youth: 'Here's access to the internet, but the profits from connecting you will flow to foreign shareholders.' This is the bread vs. bandwidth dilemma – we're trading long-term ownership for short-term access, creating dependency rather than empowerment. Communications Minister Solly Malatsi gazetted a new direction of policy to ICASA, permitting Starlink and other foreign investors to "harmonise" current ICT sector requirements (Department of Communications & Digital Technologies, 2025). Image: X / IOLGraphics Racial Capitalism in Real Time We are not oblivious to the sequence of events unfolding in the terrain we find ourselves in. The actions of certain global leaders have influenced policies that affect digital inclusion and economic participation. After our ambassador was dismissed, claims emerged about land confiscation in South Africa, which were used to support allegations of land grabs and genocide. He curtain-calls this performance to the globe, summons 'Cupcake' to the Oval Office, and at the brink of our president making pleas for him to stop, the Trump-Musk axis asks: 'What will you give us in return?' Our president suggests Starlink as a solution, which raises questions about the underlying motives. But these dynamics of power and racial manipulation speak deeply to what Cedric Robinson identified as racial capitalism, where racism isn't incidental to capitalism, but fundamental to its operation (Robinson, 2000). As Robin D.G. Kelley reflects on Robinson's work, this system not only exploits black labour but also uses black societies as laboratories for testing how far capital can push without resistance (Kelley, 2017). Du Bois saw this clearly: the colour line isn't just about prejudice, it's about who gets to own, who gets to profit, and who gets relegated to being grateful for scraps (Du Bois, 1903). We need to critically examine these issues, as seen in 2019 when BMW, Ford, and Toyota used 'equity equivalent' programs to avoid ownership responsibilities. But where's the evidence that this worked? Are there measurably more black-owned automotive companies today? Now they want us to accept the same promise in telecoms, dressed up as digital inclusion.
IOL News
10-06-2025
- Business
- IOL News
BBBEE policies vital for South Africa's economic transformation
President Cyril Ramaphosa has once again reaffirmed the country's commitment to defending its BBBEE laws as the only way to realise economic inclusion. Image: ANC/X South Africa's Broad-based Black Economic Empowerment (BBBEE) policies are here to stay. These were the words of President Cyril Ramaphosa who once again re-affirmed the country's affirmative action policies as key to economic transformation and inclusion. This comes as the DA among others have recently voiced their opposition to the country's economic policies. Ramaphosa and Minister of International Relations, Ronald Lamola during their recent address before the Black Business Council summit, affirmed the current legislative framework. In his newsletter on Monday, Ramaphosa indicated that the country's economy will not succeed without the current policies, adding that now is not the time to back-track on these policies as they are the cornerstone of economic inclusion and the much-needed economic growth as enshrined in the constitution and the Freedom Charter. "Our Constitution reflects the promise we made to one another and to future generations to redress the injustices of our past and realise the full potential of our country. For this reason, we reaffirm that broad-based black economic empowerment is not just a policy choice but a constitutional imperative. "In recent months, the world has entered what many now term a 'poly-crisis' where global conflict, economic stagnation, mistrust in institutions and environmental degradation are challenging even the most resilient of nations." Ramaphosa said now is not the time to abandon the measures that have been put in place to drive transformation. "To the contrary, it is the time to move forward with greater purpose and raise our ambition. Since 1994 we have built a robust legislative framework to advance the transformation of our economy, anchored in the Broad-Based Black Economic Empowerment Act and the Employment Equity Act. The progress we have made is undeniable," he said. In his address to the Black Business Council summit on Thursday, Lamola encouraged black entrepreneurs to take a firm stand in the country's ailing economy. "In the context of our country, inclusive growth has a broader meaning, it must mean the inclusion of black entrepreneurs in the mainstream of our economy and into the South African business playing a role in the world. This is a constitutional imperative. Further to the above small businesses have a key role to play, exchange program and collaboration becomes key," Lamola said. Despite the DA saying the BBBEE laws have not worked, Ramaphosa indicated through legislative frameworks such as the BBBEE policies and other interventions, the country has realised and seen real changes in ownership patterns and more businesses owned by women. "We have seen changes in management control, enterprise development and skills development. According to Statistics SA, between 2006 and 2023, black African households experienced real income growth of 46%, coloured households of 29% and Indian households of 19%. "Despite this progress, the average income of white households is still nearly five times higher than that of black African households. This is the gulf we must close through deliberate and sustained efforts to expand opportunity. Transformation is not a favour. It is a necessity," he added.
IOL News
09-06-2025
- Business
- IOL News
Ramaphosa reaffirms BBBEE policies as vital for South Africa's economic transformation
President Cyril Ramaphosa has once again reaffirmed the country's commitment to defending its BBBEE laws as the only way to realise economic inclusion. Image: ANC/X South Africa's Broad-based Black Economic Empowerment (BBBEE) policies are here to stay. These are the words of President Cyril Ramaphosa who has once again, re-affirmed the country's affirmative action policies as key to economic transformation and inclusion. This comes as the Democratic Alliance (DA) and other commentators have recently voiced their opposition to the country's economic policies. Ramaphosa and Minister of International Relations, Ronald Lamola during their recent address before the Black Business Council summit, affirmed the current legislative framework. On Monday, in his weekly newsletter, Ramaphosa indicated that the country's economy will not succeed without the current policies, adding that now is not the time to back-track on these policies as they are the corner stone of economic inclusion and the much-needed economic growth as enshrined in the constitution and the Freedom Charter. "Our Constitution reflects the promise we made to one another and to future generations to redress the injustices of our past and realise the full potential of our country. For this reason, we reaffirm that broad-based black economic empowerment is not just a policy choice but a constitutional imperative. "In recent months, the world has entered what many now term a 'poly-crisis' where global conflict, economic stagnation, mistrust in institutions and environmental degradation are challenging even the most resilient of nations." Ramaphosa said now is not the time to abandon the measures that have been put in place to drive transformation. "To the contrary, it is the time to move forward with greater purpose and raise our ambition. Since 1994 we have built a robust legislative framework to advance the transformation of our economy, anchored in the Broad-Based Black Economic Empowerment Act and the Employment Equity Act. The progress we have made is undeniable," he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading In his address to the Black Business Council summit on Thursday, Lamola encouraged black entrepreneurs to take a firm stand in the country's ailing economy. "Promoting inclusive trade and investment can help bridge both domestic and global divides, supporting the resilience of developing countries in particular. "In the context of our country, inclusive growth has a broader meaning, it must mean the inclusion of black entrepreneurs in the mainstream of our economy and into the South African business playing a role in the world. This is a constitutional imperative. Further to the above small businesses have a key role to play, exchange program and collaboration becomes key," Lamola said. Despite the DA saying the BBBEE laws have not worked, Ramaphosa indicated through legislative frameworks such as the BBBEE policies and other interventions, the country has realised and seen real changes in ownership patterns and more businesses owned by women. "We have seen changes in management control, enterprise development and skills development. According to Statistics SA, between 2006 and 2023, black African households experienced real income growth of 46%, coloured households of 29% and Indian households of 19%. "Despite this progress, the average income of white households is still nearly five times higher than that of black African households. This is the gulf we must close through deliberate and sustained efforts to expand opportunity. Transformation is not a favour. It is a necessity," he added.
Eyewitness News
23-05-2025
- Business
- Eyewitness News
Communications Dept issues gazette to review B-BBEE licensing requirements for satellite service companies
JOHANNESBURG - The Department of Communications and Digital Technologies has issued a gazette to review B-BBEE licensing requirements for satellite service companies. In a statement, Minister Solly Malatsi said that this was in line with government's efforts to attract foreign investment. The announcement comes just days after US President Donald Trump met with President Cyril Ramaphosa to try and reset bilateral relations. Malatsi said the current regulations did not allow many companies that can contribute to the country's transformation goals to qualify for individual licenses under the Electronic Act. "Currently, the rules around who can acquire a licence to provide electronic communications services or to operate an electronic communications network require a minimum of 30% shares to be in the hands of historically disadvantaged individuals. "EEIPs, provided for under the Broad-Based Black Economic Empowerment Act (Act 53 of 2003) and the ICT Sector Code, allow qualifying multinationals to meet empowerment obligations through alternatives to 30% ownership — such as investing in local suppliers, enterprise and skills development, job creation, infrastructure support, research and innovation, digital inclusion initiatives, and funding for SMMEs."
