Search

 

Cablegate: Dti Official Clarifies Bee Codes of Good Practice

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 PRETORIA 005063

SIPDIS

DEPT FOR AF/EPS AND AF/S/TCRAIG AND KGAITHER
COMMERCE FOR 4510/ITA/IEP/ANESA/OA/JDIEMOND
TREASURY FOR BRESNICK, LSTURM, AND AJEWELL
DEPT PASS USTR FOR PCOLEMAN, WJACKSON AND CHAMILTON

SENSITIVE

E.O. 12958: N/A
TAGS: EINV ETRD EFIN ECIN ECON SF
SUBJECT: DTI OFFICIAL CLARIFIES BEE CODES OF GOOD PRACTICE

(U) This cable is sensitive but unclassified. Not for
Internet distribution.

1. (SBU) SUMMARY. Department of Trade and Industry (DTI)
Director of Black Economic Empowerment (BEE) Jeffrey Ndumo
met with representatives from U.S. firms at the American
Chamber of Commerce in South Africa (AmCham). Ndumo said
that DTI would release nine Codes of Good Practice in two
phases over the next several months. He said that a new DTI
scorecard containing targets for each Charter component
would be included in the Codes. Ndumo announced the
formation of a DTI "BEE Secretariat," which will engage with
all sector BEE councils. He also said that DTI would
announce the National BEE Advisory Council this year. Ndumo
criticized state-owned companies (SOEs) who attendees
claimed are requiring firms to comply with multiple industry
targets. He said that this is a "misunderstanding and
misapplication of BEE" and that he would address this issue
with SOEs and government agencies in an upcoming roadshow.
Ndumo thanked AmCham and its members for their engagement
with DTI on BEE policy. He said that no other business
chamber had presented DTI with the thoughtful and critical
analysis of BEE the way that AmCham had. END SUMMARY.

2. (U) On November 10, 2004, Department of Trade and
Industry (DTI) Director of Black Economic Empowerment (BEE)
Jeffrey Ndumo met with representatives from U.S. firms at
the American Chamber of Commerce in South Africa (AmCham).
Ndumo spoke about DTI's Codes of Good Practice and responded
to questions and concerns that U.S. firms have about BEE.

3. (U) Ndumo explained that DTI would release nine Codes of
Good Practice in two phases over the next several months.
Phase one includes three Codes, which will be published
before the end of this year. Phase two Codes are scheduled
for release in February 2005. Each Code will attempt to
explain all the issues pertaining to a particular BEE
element. The Codes will consist of one or more
"statements." A "statement" includes a related set of
principles guiding the implementation of one BEE issue.
Ndumo pointed out that these Codes are not to be confused
with industry Charters that, once approved and gazetted by
DTI, will also be referred to as Codes of Good Practice. A
list of DTI's Codes and statements to-date follows:

PHASE ONE:
Code 000: Framework
Statement 000: Conceptual Framework
Statement 020: Charter Guidelines
Statement 030: BEE Council
Statement 070: Broad-based BEE Implementation
Statement 090: Glossary
Code 100: Ownership
Statement 100: Ownership
Statement 140: Government Ownership
Code 200: Management
Statement 200: Management

PHASE TWO:
Code 300: Employment Equity
Code 400: Skills Development
Code 500: Affirmative Action
Code 600: Enterprise Development
Code 700: Corporate Social Investment (CSI)
Code 800: BEE Practice Notes

4. (U) As part of Code 000, Ndumo said that DTI would
release a new scorecard containing targets for each
component. The new scorecard will also allocate points for
the inclusion of women. Preferential procurement will be
based on BEE contribution. Bonus points will be given for
over-performance. The scorecard will include more options
for indicators and sub-minimum scores will be required to
achieve BEE-compliant status. When asked about potential
differences between existing Charter targets and DTI's new
scorecard targets, Ndumo responded that DTI had looked at
market trends emerging in the industry scorecards. Ndumo
said that industry would find DTI's targets "reasonable."

5. (U) Ndumo said that DTI is forming a "BEE Secretariat,"
which will be a DTI organ. The Secretariat will absorb
existing DTI personnel dedicated to BEE and will engage with
all sector councils. The Director of the Secretariat will
sit on the National BEE Advisory Council. Government
decisions pertaining to BEE, however, will be made by the
Advisory Council, which Ndumo said would be announced this
year.

6. (U) Several people in attendance commented to Ndumo that
state-owned enterprises (SOEs) across various sectors are
requiring firms to comply with the SOE's respective industry
targets. Ndumo said that this is a "misunderstanding and
misapplication of BEE" and that he would address this issue
with SOEs and government agencies in an upcoming roadshow.

7. (SBU) Ndumo thanked AmCham and its members for their
engagement with DTI on BEE policy. He said that no other
business chamber had presented DTI with the thoughtful and
critical analysis of BEE the way that AmCham had. Ndumo
welcomed future opportunities to engage with AmCham and
American firms in South Africa.

FRAZER

© Scoop Media

 
 
 
World Headlines

 


Myanmar: UN Condemns Escalating Violence In Deadliest Day Of Protests So Far

In response to the killing of at least 18 protesters demonstrating against Myanmar’s military coup, the UN human rights office (OHCHR) on Sunday together with the UN chief, strongly condemned the “escalating violence” and called for an immediate end to the use of force... More>>

Syria: Economic Decline, Rising Hunger And Surging Humanitarian Needs

Syria’s fragile economy has “suffered multiple shocks” over the past 18 months, with its currency plummeting and joblessness swelling as people struggle to cover their basic needs, the UN Emergency Relief Coordinator told the Security Council ... More>>

OECD: Final Quarter Of 2020 Shows Continued Recovery In G20 International Merchandise Trade

G20 international merchandise trade continued to rebound in the fourth quarter of 2020 ( exports up 7.2% and imports up 6.8%), following the sharp falls seen in the first half of 2020, as lockdown measures affected trade globally. Although growth ... More>>


Focus On: UN SDGs


UNFCCC: Greater Climate Ambition Urged As Initial NDC Synthesis Report Is Published

UN Climate Change today published the Initial NDC Synthesis Report, showing nations must redouble efforts and submit stronger, more ambitious national climate action plans in 2021 if they’re to achieve the Paris Agreement goal of limiting global temperature rise by 2°C—ideally 1.5°C—by the end of the century... More>>


2021: Critical Year To ‘reset Our Relationship With Nature’ – UN Chief

During this time of “crisis and fragility”, the UN chief told the United Nations Environment Assembly on Monday that human well-being and prosperity can be vastly improved by prioritizing nature-based solutions. Painting a picture of the turmoil ... More>>


Paris Agreement: UN Secretary-General António Guterres To Mark U.S. Reentry With Envoy For Climate John Kerry

Watch live at webtv.un.org UN Secretary-General António Guterres will join U.S. Special Presidential Envoy for Climate John F. Kerry at an event marking the United States’ reentry into the Paris Agreement this Friday. The discussion with the Secretary-General ... More>>