The financial sector Broad-Based Black Economic Empowerment (B-BBEE) charter has not collapsed, according to a statement issued late on Thursday by the National Treasury, despite media reports suggesting that it had because a deadline set for March 31 had been passed.

The Treasury said that the Department of Trade and Industry (DTI) said last August that charters that applied for gazetting before the end of the transitional period ending last August would be processed accordingly and afforded a 60-day public commentary process as per section 9 of the B-BBEE Act coupled with a 30 day technical analysis process. Thereafter the
charters will be gazetted as sector codes."

"It is the National Treasury's considered view therefore that the FSC is still in force and has not collapsed," the statement said.

"To date, the National Treasury has not received any new information that the DTI will not
follow through with its intention as indicated in the 31 August 2008 media statement."

There has been a good deal of tension over this charter, largely because the banks and other institutions have been trying to fight the requirement that the black ownership target should be 25%. They want to retain the 10% direct black ownership target.

The Congress of South African Trade Unions expressed themselves bitterly disappointed that the Treasury itself appeared to have come out in support of the banks' position.
 
2009-04-03 06:08:43    Source: I-Net Bridge