One of the country’s most influential construction industry organisations, Master Builders South Africa (MBSA), has called on its members to get firmly behind the transformation goals of the newly released draft construction sector code for black economic empowerment (BEE).
The revised code is in many ways an evolution of the 2009 construction sector code that was repealed by the DTI in February this year. It sets higher and stricter targets for BEE in terms of ownership, management and procurement among others, while purposely closing many of the loopholes being used for fronting or misrepresenting actual BEE compliance.
MBSA executive director, Roy Mnisi (seen here), says that the association wholeheartedly supports the new draft code and believes it is critical to attaining the country’s developmental agenda. Adoption of the code will broaden economic participation in the industry, while driving growth, job creation, skills development and poverty alleviation within the country.
Industry assistance
“We therefore want to encourage and support all our members to adopt and comply with the new code. Once gazetted the draft code will be open for comment for a period of 60 days where after we anticipate that it will be finally gazetted and implemented by October this year.
“Unlike the previous code, there will not be a lengthy transition period and the Construction Sector Charter Council (CSCC) is moving for a simultaneous adoption upon implementation of the new code. This will ensure that we maintain the positive momentum that was garnered with the old code and move quickly towards our new goals and aspirations.
“Rather than being punitive we want to get behind our members and assist them in whatever way possible to meet the new goals set out by the CSCC. With the adoption of the new code the construction industry has the opportunity to become a leading beacon in transformation within the country and we want all Master Builders to be part of it,” Roy says.
Unpacking the code
While the new draft code is available from the CSCC and will be gazetted in the near future, the MBSA will discuss, in-depth, the requirements of the new draft code at its annual Master Builders Congress that will take place from 31 August to 2 September in Durban this year.
The congress is open to all within the construction industry and with Thabo Masombuka, CEO of the CSCC, and other industry role players on hand to answer charter code related questions, it represents a good opportunity for companies to attend and become familiar with the code.
“We will unpack some of the major elements including the black ownership target of 35% within four years of promulgation of the code, as well the acceleration of black management within all echelons of companies and the appointment of black women into management positions. Emerging supplier and contractor development through decisive procurement will also be a discussion point along with skills development across the board,” says Roy.
He concludes that the controversial “once empowered, always empowered” principle is also being done away with and will be a hot topic, as will the requirement for exempted micro enterprises (EMEs) who will no longer be allowed to submit an affidavit as proof of the company’s EME status. Other topics on the agenda will include the capping of outsourcing of contracts to a maximum of 25%, new weighting for BBBEE scorecards, alignment with national and industry-related imperatives, as well as enterprise and supplier development.
