Imagine a situation where legislation passed under supposedly good intentions inadvertently backfires. Fortunately, President Jacob Zuma has discovered this before hastily passing the Minerals and Petroleum Resources Development Act Amendment Bill.
In a statement, the President’s Office argued that implementing key legislation governing the oil, gas and minerals industries could undermine black economic empowerment.
Commenting on the decision, the president’s spokesperson Mac Maharaj said: “The …Act is likely (to be) unconstitutional in that the amended (bill) elevates the codes of good practice for the South African Minerals Industry … and the Amended Broad-Based Socio-Economic Empowerment Charter for South African Mining and Minerals Industry to the status of national legislation.”
President Zuma has sent back the Minerals and Petroleum Resources Development Act Amendment Bill to parliament on the grounds that it was not constitutional. The legislation will declare certain minerals strategic and provide for a 20% government ownership of extractive revenue.
In its current format, the Minister could decide to repeal the provisions on BEE, as well as the housing and living condition standards for the minerals industry. This, as observed by Zuma, would by-pass the constitutionally mandated procedures for the amendment of legislation.
