In an earlier communication I made mention of the following requirements in gazette 38764:
Black ownership via Employee Share Ownership Programmes (ESOP) and Broad-Based Ownership Schemes (BBOS) can only be recognised under Ownership paragraph 2.2.3. This means that:
-The maximum that can be scored for Ownership via an ESOP or a BBOS is 3 points.
-Black ownership through a BBOS or ESOP will not count to the Net Value subminimum which may seriously impact company scorecards.
-Companies recognising ownership through ESOP or BBOS will be prejudiced by this change.
-Another concern is that proper procedure has not been followed in the gazetting of this change. Amendments to the codes must be released for public comment for 60 days prior to final gazetting. This was not done in this case. DTI have proceeded directly to gazette the amendment.
This caused a large uproar. The National Union of Mineworkers was quoted in a number of press articles as stating that the DTI was “regressive” and “backward”.
As a result, DTI issued a statement on 08 May 2015 giving the following clarity:
-The statement in Gazette 38764 will not be applied retrospectively
-It only relates to ESOP and BBOS concluded after 01 May 2015
-A Task team will be appointed to explore “the appropriate balance between active (direct) and passive (broad-based schemes) ownership.”
-This task team will report in 30 days. The Minister will then provide further guidance on this issue.
Click here for a brief overview of the primary changes introduced by Government Gazette 38766.