Confusion over new BEE Act causes business panic

May 11, 2015

The trade and industry department has not clarified the new BEE Act and codes of good practice, resulting in nervousness and uncertainty

The broad-based black economic empowerment amended codes of good practice came into law on May 1 but the department of trade and industry (DTI) has yet to clarify a number of issues, including the draft qualifying small enterprise codes and the revision of sector codes. This is according to assurance, tax and advisory firm Grant Thornton.

"Parts of the codes are still not gazetted, others have not even been issued for comment and the verification manual is nowhere to be seen," says Jenni Lawrence, managing director of verification services at the firm's Johannesburg offices. "Clients are panicking and the industry is extremely nervous - yet still the DTI remains mum." Lawrence said the department was ignoring industry pleas for clarification with the result that many businesses do not know how to proceed.

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