Minister Davies gazettes threshold for major B-BBEE transactions

DaviesThe Minister Trade and Industry, Dr Rob Davies has gazetted the Threshold for Major B-BBEE Transactions which must be submitted to the Broad-Based Black Economic Empowerment (B-BBEE) Commission in terms of Section 13F (1) (f) of the Broad-Based Black Economic Empowerment Act 53 of 2003 as Amended by Act 46 of 2013 as well as Section 18 of the B-BBEE Regulations.

All Transactions with a Value that equals or exceeds R25 Million as per Code Series 100, Statement 100 of the Amended Codes of Good Practice must be registered with the B-BBEE Commission.

Transactions concluded before the 24 October 2014 may be voluntarily registered with the B-BBEE Commission. The Threshold excludes Transactions under Code Series 100, Statement 103 of the Amended Codes of Good Practice.

The B-BBEE Commission will prescribe the documentary requirements in order to Register the Transaction with the B-BBEE Commission.

“A Major B-BBEE Transaction” means any transaction between entities/parties that result in Ownership Recognition in terms of Statement 100. The Threshold of registering the Transaction with the B-BBEE Commission is based on the Transaction Value excluding administration, professional and legal fees.

The B-BBEE Commission welcomed the move by the minister. It also stated that parties are reminded that this process is for registration and not pre-approval for major B-BBEE transactions, and therefore will not result in any delays whatsoever in implementation of deals concluded from time to time. Parties are encouraged to approach the B-BBEE Commission for advisory opinions prior to concluding B-BBEE deals to ensure that they are B-BBEE compliant. Many companies have already started using this service with more than 50 advisory opinions already issued by the B-BBEE Commission.

The commission said the main benefit of the register for major B-BBEE transactions is that it will allow for the monitoring of compliance, levels of transformation and extent to which benefits of the major B-BBEE transactions flow to the black persons that are part of these deals in compliance to the objectives of the B-BBEE Act.

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