Strategy of theThe B-BBEE Commission strategic plans are linked to the dti objectives and goals of the National Development Plan (NDP). In order to achieve its strategic plans and

B-BBEECOMMISSION

Broad-Based Black Economic Empowerment Commission2019/20 - 2023/24

Strategy of the

1Strategy Plan | 2019/20-2023/24

Table of Contents6.4 Descriptionofthestrategicplanningprocess ................................................................................................................. 14

6.5 Strategicoutcomeorientedgoalsoftheentity ............................................................................................................... 14

7. Programme 1: Compliance ............................................................................................................................................. 16

7.1 Strategicobjectivedescription ........................................................................................................................................ 16

7.2 ResourceConsiderations ................................................................................................................................................. 17

7.3 RiskManagement ............................................................................................................................................................ 17

8. Programme2:Investigationsandenforcement ............................................................................................................. 17



8.3 RiskManagement ............................................................................................................................................................ 18

9. Programme3:Research,analysisandreporting ............................................................................................................ 18


9.3 RiskManagement ............................................................................................................................................................ 18

10. Programme4:RelationshipBuilding/StakeholderRelations ........................................................................................ 19



10.3 RiskManagement ............................................................................................................................................................ 19

11. Programme5:Administration ........................................................................................................................................ 20


11.3 RiskManagement ............................................................................................................................................................ 21

PartC:Linkstootherplans ...................................................................................................................................................... 21

12. ExistingPlans ................................................................................................................................................................... 23

12.1 Financial Plan ................................................................................................................................................................... 23

12.2 RiskManagementPlan .................................................................................................................................................... 23

13. Linkstothelong-terminfrastructureandothercapitalplans ....................................................................................... 23

14. Conditionalgrants ........................................................................................................................................................... 23

15. Publicentities .................................................................................................................................................................. 23

16. Public-privatepartnerships ............................................................................................................................................ 24

2 Strategy Plan | 2019/20-2023/24

The Broad-Based Black Economic

Empowerment (“B-BBEE”) Commission is

established in terms of B-BBEE Act 53 of

2003,asamendedbyAct46of2013(“B-BBEE

Act”). The main objective of the B-BBEE Act

is to advance economic transformation and

enhance economic participation of previously

marginalised group in the South African

economy. In instances of inconsistencies or

misalignment with other pieces of legislation

in respect to B-BBEEmatters, the B-BBEE Act

willprevail.

The B-BBEE Commission is established to

oversee, monitor, promote compliance with

therequirementsoftheB-BBEEAct,toreceive

complaints relating to B-BBEE, to investigate

any matter relating to B-BBEE, to promote

advocacy, to maintain a registry of major

B-BBEEtransactionsandtoreceiveandanalyse

such reports as may be received concerning

B-BBEEcompliancefromorgansofstate,public

entitiesand JSE listedentities, amongstother

things.

The B-BBEE Commission strategic plans are

linked to the dti objectives and goals of the

National Development Plan (NDP). In order

to achieve its strategic plans and effectively

fulfil its mandate, the B-BBEE Commission

needs to be adequately capacitated with

requisite resources in terms of financial

and human resources, and procurement of

office space that will assist with recruitment

and accommodating its officials and offer a

brandingopportunityintermsofpromotingits

existenceandaccessibilitytothepublic.

In 2018/19 financial year, the B-BBEE

Commission conducted various workshops

nationally to raise awareness and educate

stakeholders in order for them to understand

their obligations and rights under the B-BBEE

Act. The B-BBEE Commission continues to

focus its resources in this area to reachmore

stakeholders given the apparent need based

on thenumberofcomplaintsandcompliance

reports received thus far. As part of the

outreachprogramme,theB-BBEECommission

hosts its Annual Conference and the theme

forthelastfinancialyearwasImprovingState

ProcurementforRealEconomicEmpowerment

as state entities have been identified as key

driverstobringabouteconomictransformation.

The B-BBEE Commission achieved 76%

performance on its targeted milestones

on average over the first three quarters of

2018/19 financial year. This is commendable

achievement considering that the B-BBEE

Commission is operating with limited human

and financial resources based on budget

allocation by the dti. Through its complaints

handlingandinvestigationprocess,theB-BBEE

Commissionhasissuedsixty-six(66)Noticesof

Non-Investigation and has finalised seventy-

two (72) investigations with investigation

reports completed. Noteworthy is findings

published by the B-BBEE Commission against

SAB&TBEEServices(Pty)LtdandBEEMatrixfor

failingtoconductaproperverificationprocess

andforissuinginvalidB-BBEEcertificates.

Memoranda of Understanding have been

concluded with KwaZulu-Natal Department

of Economic Development, Tourism and

Environmental Affairs, National Gambling

Board, Competition Commission, Companies

and Intellectual Property Commission,

Commission for Employment Equity, South

African National Accreditation Systems and

South African Revenue Services, leading

to collaboration on compliance, referrals,

educationand joint investigationmatters that

have impact on corporate governance and

B-BBEEmatters.

Intermsofsection13GoftheB-BBEEAct,the

B-BBEE Commission received a total of 347

compliancereportsfromJSElistedcompanies,

sector councils and organs of state as at 31

December2018.Ofthe347compliancereports

received only four (4)were fromgovernment

departments, two (2) from SETAs, thirty-six

(36)frompublicentitiesandtwo(2)fromthe

sectorcouncils.

I, therefore, take this opportunity to remind

all government departments and entities to

ensure compliance with the B-BBEE Act and

for Auditor General to include compliance

reporting as part of its audit requirement.

Further, respective Portfolio Committees and

theDepartmentofMonitoringandEvaluation

within the Presidency are requested to

include compliance with B-BBEE as part of

their oversight role relating to government

departmentsandentities.

IampleasedtotabletheB-BBEECommission’s

three (3) year Annual Performance Plan

2019/20–2021/22,whichhighlights indetail

howobjectiveswillbemet.Thiswillessentially

lead to the required change in the structure

of our economy to enable entry and full

participation by black people and contribute

positively in decreasing unemployment and

poverty.

________________________

Dr Rob Davies, MPMinisterofTradeandIndustry

ForewordbytheExecutiveAuthority

3ANNUAL PERFORMANCE PLAN 2018 |2019/20-2021/22

Overview by theAccountingOfficer

Given the scourge of fronting that was

identified as a major risk for the successful

implementation of B-BBEE, we are pleased

that the compliance strategy is beginning to

pay off. In this regard proactive requests for

advisory opinions and presentations from

stakeholders have increased significantly. We

have issuedtwenty-six (26)advisoryopinions,

one thousand and thirty (1030) clarifications

as well as provided the necessary guidance

to increase the level of compliance through

meetingsandpracticeguides.

Wecontinuetoimplementmeasurestocombat

frontingpracticeswhereallegedordiscovered

through ourmonitoringmechanisms, andwe

areconcernedthat90%ofthetotalcomplaints

we have received relate to allegations of

fronting which are prevalent in ownership,

enterprise development and management

control in entities. However, a decrease by

19% in complaints received from 1 April to

31December2018 isnoticeablecompared to

2016/17 financial year same period, but the

qualityofcomplaintsreceivedhasincreased.

Werealisethatcomplaintsrequiresensitivity,

attention to detail and urgent intervention

as most complainants would have suffered

for a number of years prior to receiving

attention and assistance. In instances where

deemednecessaryorappropriate,wepursue

alternation dispute resolution which offers

immediatereliefforcomplainantsratherthan

the criminal process thatmay takeanumber

of years before redress to the complainants

canbe achieved.Notwithstanding the above,

some complaints were referred to NPA/SAPS

for criminal investigation whereas other

complaints outside jurisdiction of the B-BBEE

Commissionwerereferredtootherregulatory

institutionssuchasCompaniesandIntellectual

PropertyCommission(CIPC).

As from 1 April 2018 to 31 December 2018

we have produced twenty-nine investigations

with eleven (11) final investigation reports

produced and eighty-three (83) merit

assessment reports. We have issued eighty-

seven (87) Notices of Non-Investigation, in

respect of complaints where we found no

evidenceof contraventionof theB-BBEEAct,

for instance a matter predates the B-BBEE

Act, or does not fall within our jurisdiction.

We have successfully concluded twelve (12)

agreements relating to alternative dispute

resolution where complainants were paid

in excess of R100 million as redress arising

from the complaints and contributions were

made towards promoting objectives of the

B-BBEE Act, particularly upskilling of black

beneficiaries.

Pursuant to the publication of the notice in

the government gazette for the registration

ofmajorB-BBEE transactionsby theMinister

of Trade and Industry, Dr Rob Davis on 09

June 2017, three hundred and forty-one

(341) B-BBEE transactionswere registered as

at 31March 2018, of those transactions one

hundred and fourteen (114) involved Trusts,

two hundred and twelve (212) certificates of

registrationwereissuedandonehundredand

thirteen (113) rejected for non-compliance.

Moreover, three hundred and forty-seven

(347) compliance reportswere received from

public companies listed on the JSE, organs

of state and public entities in line with the

requirementofsection13GoftheB-BBEEAct.

We are concerned though that only two (2)

compliancereportswerereceivedfromSETAs

andforty(40)werefiledbyorgansofstateand

publicentities.

In reviewingourstrategicplans,wediscussed

measurable performance indicators upon

which our work and impact on intended

beneficiariescanbeverified,aswellasstrategic

risks,whichwecouldbeexposed to together

with mitigating controls. We have identified

ourkeyfocusareasasfollows:

• Safeguardingtheoutcomesofaninclusive

economy;

• Implementing corrective enforcement to

achievecompliance;

• Researching, analysing and reporting on

thestateoftransformation;

• Collaborating with relevant stakeholders

toadvancetransformation;and

• Developing capability and capacity of

theB-BBEECommission todeliveron its

mandate.

We will continue to pursue the compliance

strategy by raising awareness on the

requirements of the B-BBEE, guiding and

assistingstakeholders to implement initiatives

and transactions in a manner that promotes

the objectives of the B-BBEE Act through

information sessions, provision of guidelines

andadvisoryopinions,aswellasinterpretation

of the B-BBEE legislation. We will also

implementourcorrectiveenforcementstrategy

with stern action taken against those that

showblatant disregardof the lawand repeat

offenders including those that have been

issuedwithwarning or instruction letters but

failedtocorrectthebehaviour.

IncasesofblatantdisregardoftheB-BBEEAct

and B-BBEE Commission directive/s, we will

refer such matters for criminal investigation

and prosecution, including referral to courts

or Companies and Intellectual Property

Commission (CIPC) with the view to declare

directorsofcompaniesasdelinquentdirectors

sothattheycanbeexcludedfromholdingany

directorship.Also,wewillengagewithNational

Treasurytoregistertransgressorsonthetender

defaulterslistandforcancellationofcontracts

by government departments and entities,

but also continue to encourage state entities

to conduct due diligence prior to granting

contracts/tenderstopreventunnecessaryand

prolonged court cases. This financial year we

aim to fully implement our communication

strategy to effectively communicate thework

of the B-BBEE Commission, including the

findingsonconcludedcasesandreferrals.

4 Strategy Plan | 2019/20-2023/24

Despite our official office hours, we commit to being accessible and

reachable to all our stakeholders, by developing and implementing a

twenty-four (24)-hour Contact Centre to provide best services and rapid

adviceasrequired.Withatrackrecordoftwo(2)years,wewillembarkon

extensivecommunicationoftheworkoftheB-BBEECommissionthrough

publicationofdecisions,alternativedisputeresolutionagreementsreached

andreferralforprosecution.Thiswillalsoenableustonotonlynameand

shameculprits, but tohaveothers learn fromcorrectiveaction takenby

otherentitiesthathadinadvertentlyviolatedtheB-BBEEAct.

Wewillcontinuetomonitorthemarketsdailyandintroducemeasuresto

enable us to detect systematically improper andunethical practices that

undermine the objectives of the B-BBEE Act, and initiate investigations

against the offending entities. Attention to quicker redress through

alternative dispute resolution mechanisms, will be provided where

applicabletoreducelitigationcosts,butwillnotbeentertainedinrespect

ofseriousviolationsorrepeatoffenders.

Realisingthatboththepublicandtheprivatesectorarekeytoachieving

theobjectivesoftheB-BBEEAct,wewillcontinuewithourcollaboration

effortsthroughstakeholderengagementandimplementactivitiestowards

the fulfilment of the Memoranda of Understanding that we concluded

with KwaZulu-Natal Department of EconomicDevelopment, Tourism and

Environmental Affairs, SANAS, CIPC, Competition Commission, NGB and

theCommissionforEmploymentEquity.Further,wewillputmeasuresto

effectivelyimplementthereferralprotocolwithsectorcouncilsinorderto

createtherequiredconsistencyandharmonisation.

Wewillonad-hocbasisidentifypersonsthatshouldbenefitfromB-BBEE,

facilitate access/referral to relevant agencies and entities to receive

financialandnon-financialsupport,andassistthemwithlinkstoplatforms

formarketaccessandgeneralmarketingofproductsandservices,whilst

aimingtoencouragebeneficiariestobenefitfromenterpriseandsupplier

developmentelementsintheB-BBEEAct.

In order to improve our operational efficiency, we are currently in the

process of developing a Case Management System (CMS) which will

introduce automated registration, reporting, complaints handling and

further provide us with the capability for large data management and

informationintelligence.

We will acknowledge and reward entities for significant steps taken

to achieve the objectives of the B-BBEE Act and attaining the economic

transformationmilestones.We will reward entities for leading from the

frontonB-BBEE, insteadoffronting black people toachievefalseB-BBEEcredentials. In this regard,wewill continuetorecogniseentitiesthatare

contributing positively towards implementation of B-BBEE through our

annualawardswhichcoincidewithourAnnualConference.

Wecontinueourfocusonthequality ofB-BBEEtransactionsandinitiativesin themarket; the impactof theseB-BBEE transactionsand initiatives in

respectofallfive(5)elementsofB-BBEE;aswellasincorporatingmeasures

toensurethesustainabilityofB-BBEEtransactionsareconcluded.

Amind-setshiftisrequiredtomoveawayfromthe‘tickbox’approachto

B-BBEEtoamorestrategicandsustainable implementationbymeasured

entities,aswellasashiftawayfrom‘getrichquick’approachbysomeblack

peopleinvolvedinB-BBEEtransactionsandinitiativesastheseundermine

theobjectivesof theB-BBEEAct.ThebenefitsofB-BBEEmustbe feltby

all,especiallythepoor,throughthedevelopment/supportofblackowned

enterprises and industrialists that can grow the economy and create

employmentopportunities.

Having taken into consideration the challenges that may impact our

operations and the dynamic environmentwe operate in, we are guided

bythefollowingorganisationalvalues,whichserveasabaseforhowwe

serve,actandinteractwithourstakeholders:

An inclusive economy is our first consideration

• Ourfirstpriorityandcommitmentisournationaleconomicinterests

• Ourstakeholdersarekeytousachievingoureconomicgoals

Open access and availability to all economic citizens

• Weofferswiftturnaroundtimesguidedbyourservicestandards

• Weofferfairandconsistentredresswithinthelegislativeparameters

• Weofferquickresponsesaswedonotownanyredtape

Impartiality

• We act without favour, fear, bias or prejudice regardless of the

pressurewemaybebroughtunder

• Wehandleallmattersobjectivelyinlivingourpurpose

• Werespectconfidentialitywithinthelaw

Consistency

• Weprovidecleardirectionsandreliableguidance

• Weprovidedecisionsandadvicethatisconsistent

Accountability for all our decisions and actions taken by us

• Weupholdandrespectalldecisionstakenbyourorganization

• Wetrustallourstafftoservestakeholdersdiligentlyandprofessionally

• Wetakeresponsibilityforouractions

Zero Tolerance for corruption

• Wearecommittedtopropergovernance

• Wearetransparentinalldealings

• Wedonottolerateanycorruption

Ourbrandpromiseisthatof‘aninclusiveeconomyforall’,whichinessence

refers to equal participation in the economy, equal access to wealth

opportunitiesbyallpeople,inclusionofblackindustrialistsintheeconomy

and availability of non-financial and financial support and incentive

schemestoachieveequality.

No one should be left behind aswe strive for an inclusive economy for

all; hence our plan for the coming year is to continue with compliance

programmeswhichwill includetheadoptionof leniencyprogrammeand

enforcementwhererequiredwithtargetbeingminingcommunities,rural

communities,youngpeople,amongstothers.Wewilluseourpartnersand

networkstoidentifythemproactively,andensurethattheyhaveaccessto

ourservicesandcanactivelyparticipate.

Weguaranteezerotolerancetocorruption,frontingandmisrepresentation

ofB-BBEEstatusbymeasuredentities.Ourcorrectiveenforcementcoupled

withourcompliancedrivenstrategywillisolatetheculpritsagainstwhom

strongandunapologeticactionmustbetaken.

Iwould also like to extendmy sincere appreciation to theManagement

TeamandStaffoftheB-BBEECommissionfortheirhardwork,passionand

dedicationinmakingadifferenceinthelivesofSouthAfricancitizens.We

arealsogratefultoourstrategicpartnersandotherkeystakeholdersforthe

tremendoussupport.

ThankyoutotheMinister, theDeputyMinisterandtheDirector-General

fortheircontinuedguidanceandsupportinourwork.

____________________________________________________________

Ms.ZodwaNtuliCommissioner

5Strategy Plan | 2019/20-2023/24

Sign-offItisherebycertifiedthat:

This plan is developed by the management of the Broad-Based Black

Economic Empowerment Commission under the guidance of the

Commissioner,MsZodwaNtuli, andwith theparticipationof theEntity

OversightUnitofthedti.

This plan reveals the strategic goals and objectives which the B-BBEE

Commissionwillconsiderovertheperiod2019/20–2023/24inorderto

achieve itsmandate. It also takes into account all relevant policies and

legislationforwhichtheB-BBEECommissionisresponsible.

Signature:

____________________________________________________________

Ms.ZodwaNtuliCommissioner

Signature:

____________________________________________________________

Dr Rob Davies, MPExecutiveAuthority

Part A: Strategic View

7Strategy Plan | 2019/20-2023/24

1.OurVision

An inclusive industrialised economy that is globally competitive

Inclusive–referstoequalparticipation,equitableopportunitiesforall,and

benefitsexperiencedbyevery sectionof thesocietyacrossSouthAfrica.

Thisgenerallyimpliesalinkofmacroeconomicandmicroeconomicfactors

oftheeconomyfor inclusivitytomaterialise.AstheB-BBEECommission,

we are vestedwith a regulatory responsibility to ensure that the South

Africa’seconomyisbroad-basedandinclusiveinordertoattainthevision

2030intheNationalDevelopmentPlan(NDP).Fortheeconomytothrive,

function and grow all South Africans must be involved and contribute

meaningfully in the value chain and critical sectors of the economy.

Therefore, inclusivity must be facilitated through skills development,

ownership,managementcontrol,socio-economicdevelopment,enterprise

andsupplierdevelopment,aswellasremovingeconomicbarriersforblack

people,sojointeffortsbyprivateandpublicsectorisrequiredasnoone

individualcandothisontheirown.

Industrialised–referstothecreationofasustainableproductiveeconomy

that is drivenbyawide rangeof locally sourcedandproducedproducts

and services. This envisages an economy that has a high rate of literacy

levels, stimulates economic and employment growth through targeted

programmes,allows tradeand investmentmore ineducation toproduce

highly competent and skilled labour force that could contribute to job

creation, creates start-ups and broaden the production base. Involves

well developed and productive commercial markets such as advanced

manufacturing and value added services. In essence more beneficiation

andexportingofvalueaddedproductsinsteadonrawmaterial.

Economy - entails the state of the country in terms of production,

distribution and consumption of goods and services in a particular

geographic region. The International Monetary Fund (IMF) in its press

briefingofApril 2015painted a picture of declining economic growth in

emerging and developing economies. It is imperative for the country to

grow its economy through internal production and distribution of goods

locallyandinternationally,andthereisaneedforastrongtradeinvestment

armwithingovernmentthatwillnotonly identifymarkets for locals,but

willalsoensuresustainability.

GloballyCompetitive-impliesviableandintegratedinternationalmarkets

withexportcapabilityinordertostimulateeconomicgrowth.SouthAfrica

doesnotoperateinaconfinedspacebuthastocompetewithothernations

forresources,skillsandmarkets,whichmeansthatwehavetosupportour

localproductsandservicesandleveragetheseagainstothermarkets.We

needtofocusonareaswherewehaveuniquelySouthAfricanproductsthat

canbe targeted forexportmarkets–weneed tohavenicheandunique

offerings.Inthisregard,benchmarks,peerreviewsandadherencetoworld

standards provide the necessary pointers on the areas that the country

must improve or capitalize on to remain globally competitive, without

compromisingnationaleconomicinterests.

2.OurMission

To facilitate the accelerated productive implementation of the Act

Facilitate – to make it easy and possible for the B-BBEE Commission

stakeholders to complywith and implement the B-BBEE Act by creating

conduciveenvironmentforinteractionsandengagements;andbyproviding

guidanceandsupportthroughadvisoryopinions,explanatorynoticesand

clarifications,amongstotherthings,ontheapplicationandinterpretationof

theB-BBEEAct,andimplementingeducationandawarenessprogrammes

andcorrectivemeasuresfornon-compliance.

Accelerated–ensuringthattransformationmovesatafasterpacewitha

targetinmindfromtheexistingbaseline,whichcanberegularlymeasured

to ensure that the country ismeeting its economic objectives on equity

andempowermentforall intendedbeneficiariesofB-BBEE.This includes

reachingouttotargetedpeople,sectorsandindustriesthathavenotfelt

transformation and empowerment to date, and enhance the impact of

B-BBEEonallsectorsofoursociety.

Productive -moving toamoreapplied industrywhere rawmaterialsare

transformedintofinishedproductswithinourcountry;astatewherewedo

notrelyonimportedgoodsforourfinishedproducts.Weplantointeract

withlearningandtechnologyinstitutions,engagewithstudentsandyouth

to encourage entrepreneurship and innovation at a young age, facilitate

access to financial and non-financial support and guidance for potential

andestablishedcompanies,notworkinglongerhoursbutworkingsmarter

andcreatively,comeupwithnewandinnovativeideasandtechnologiesto

take thecountry forward,andprovideaconduciveworkingenvironment

wherecitizensareservicedproperly.

Implementation – it is often said that SouthAfrica has the best policies

butalwayssufferswhenitcomestoimplementationduetomanyfactors

including red tape, lack of coordination, not understanding the vision,

implementersnotunderstandingmandate,lackofresourcesandfinances

and other related constraints. Thus, it is important that the B-BBEE

Commission is properly and sufficiently resourcedwith the funds, assets

andpeoplewiththerequisiteskillandexpertisetodeliveronthemandate.

3.OurBrandPromise

‘An inclusive economy for all, together’

Inclusive – refers to equal participation, equitable opportunities for of

all,andbenefitsexperiencedbyeverysectionofthesocietyacrossSouth

Africa.Thisgenerallyimpliesalinkofmacroeconomicandmicroeconomic

factorsoftheeconomyforinclusivitytomaterialize.

Economy -entailsthestateofthecountryintermsofproduction,distribution

andconsumptionofgoodsandservicesinaparticulargeographicregion.

It is imperative for the country to grow its economy through internal

productionanddistributionofgoodslocallyandinternationally,andthere

isaneedforastrongtradeinvestmentarmwithingovernmentthatwillnot

onlyidentifymarketsforlocals,butwillalsoensuresustainability.

Together –forgingandformingrelations,workingasteamsandpartnering

withotherstoachieveendgoal–privatesector,government, labourand

civil society - no one should be left behind aswe strive for an inclusive

economyforall.Thiseconomymusteffectivelybenefitallofus, thuswe

shouldwork towards the samevisionasoutlined in theNDP,and in line

withgoalsandtargetssetbyCabinetfromtimetotime.

Part A: Strategic View

8 Strategy Plan | 2019/20-2023/24

4.OurValues

Our operational environment presents various challenges for us, and

these include lack of proper corporate governance, fronting tendencies,

falsification of empowering credentials, misrepresentation of facts to

secure contracts and quick fix solutions to empowerment, all of which

present a fertile ground for unethical conduct in and outside the public

sector. Having considered this environment and our goal of operating a

credible and effective regulatory entity, we have agreed and committed

ourselvestolivebythefollowingequallyimportantvalues:

Value1:Aninclusiveeconomyisourfirstconsideration

• Ourfirstpriorityandcommitmentisournationaleconomicinterests

• Ourstakeholdersarekeytousachievingoureconomicgoals

Value2:Openaccessandavailabilitytoalleconomiccitizens

• Weofferswiftturnaroundtimesguidedbyourservicestandards

• Weofferfairandconsistentredresswithinthelegislativeparameters

• Weofferquickresponsesaswedonotownanyredtape

Value3:Impartiality

• Weactwithoutfavour,fear,biasorprejudice

• Wehandleallmattersobjectivelyinlivingourpurpose

• Werespectconfidentialitywithinthelaw

Value4:Consistency

• Weprovidecleardirectionsandreliableguidance

• Weprovidedecisionsandadvicethatisconsistent

Value5:Accountabilityforalldecisionsandactionstakenbyus

• Weupholdandrespectalldecisionsandactionstakenbyourentity

• Wetrustallstafftoservestakeholdersdiligentlyandprofessionally

• Wetakeresponsibilityforouractions

Value6:ZeroToleranceforcorruption

• Wearecommittedtopropergovernance

• Wearetransparentinalldealings

• Wedonottolerateanycorruption

5.LegislativeandOtherMandates

5.1 Legislative Mandate

Weareestablishedbysection13BofB-BBEEActandwehavejurisdiction

throughoutSouthAfrica.Wemustbeimpartialandperformourfunctions

without fear, favour or prejudice, in themost cost-effectivemanner and

inaccordancewiththevaluesandprinciplesmentionedinsection195of

theConstitution,1996.Intermsofsection13EoftheB-BBEEAct,weare

financed frommoney that is appropriated by Parliament for the B-BBEE

Commission, and money lawfully received from any other source. The

Auditor-General is mandated to audit our financial records every year.

Given that we are not a listed public entity yet, we operate within the

budgetandreportingframeworkofthe dti.

Section13FoftheB-BBEEActarticulatesourfunctionsasfollows:

• Tooversee,superviseandpromoteadherencetotheB-BBEEActinthe

interestofthepublic;

• Tostrengthenandfostercollaborationbetweenthepublicandprivate

sector in order to promote and safeguard the objectives of broad-

basedblackeconomicempowerment;

• To receive complaints relating to broad-based black economic

empowermentinaccordancewiththeB-BBEEAct;

• Toinvestigate,eitheronitsowninitiativeorinresponsetocomplaints

received, any matter concerning broad-based black economic

empowerment;

• To promote advocacy; access to opportunities and educational

programmes and initiatives of broad-based black economic

empowerment;

• To maintain a register of major broad-based black economic

empowerment transactions, above a threshold determined by the

MinisterintheGazette;

• Toreceiveandanalysesuchreportsasmaybeprescribedconcerning

broad-based economic empowerment compliance from organs of

state,publicentitiesandprivatesectorenterprises;

• To promote good governance and accountability by creating an

effectiveenvironmentforthepromotionandimplementationofbroad-

basedblackeconomicempowerment;

• ToexercisesuchotherpowerswhicharenotinconflictwiththeB-BBEE

ActasmaybeconferredontheB-BBEECommissioninwritingbythe

Minister;and

• Increase knowledge of the nature and dynamics and promote

public awarenessofmatters relating tobroad-basedblack economic

empowermentby implementingeducationandawarenessmeasures,

providingguidancetothepublicandconductingresearchonmatters

relatingtoitsmandateandactivities.

Ourstrategicfocusareasarederivedfromthemandateinsection13Fofthe

B-BBEEAct,withtheresourcesmadeavailableinaccordancewithsection

13EoftheB-BBEEActandtakesintoaccountallresponsibilitiesunderthe

ConstitutionandthePFMAgoverningorgansofstateandpublicentities.

The B-BBEE Act and the Codes of Good Practice clearly outline the

imperatives that theperformanceofourmandatemustmakean impact

on, and in termsofwhich transformationprogress should bemeasured,

namely:

• Ownership

• ManagementControl

• EnterpriseandSupplierDevelopment

• SkillsDevelopment

• Socio-EconomicDevelopment

6.Situationalanalysis6.1 Performance environment

TheB-BBEECommissionwasestablishedintermssection13BoftheB-BBEE

Act.TheB-BBEECommissioncommenceditsoperationsinJune2016after

thepublicationofB-BBEERegulations.

The B-BBEE Commission developed strategic partnerships with other

regulatory entities to explore other synergies and collaborate on

investigationsinordertoreachthedesiredresultsinexecutingitsmandate.

The Memoranda of Understanding have been concluded with various

regulatory structures namely; National Gambling Board, Competition

Commission,CompaniesandIntellectualPropertyCommission,Commission

forEmploymentEquity,SouthAfricanNationalAccreditationSystemsand

SouthAfricanRevenueServices.

Furthermore, the B-BBEE Commission has established the Legal and

Compliance Committee, chaired by Ms Zandile Mpungose, and the

Enforcement Committee chaired by, Mr Lutendo Sigogo, to provide

guidanceintheexecutionofitsmandate.

9Strategy Plan | 2019/20-2023/24

Given the number of fraudulent certificates in the market, the B-BBEE

CommissiondevelopedaB-BBEECertificatePortalsystemwhichrequires

verificationprofessionals/agenciestouploadapprovedB-BBEEcertificates.

This is ameasure to reduce use of fraudulent certificates and in future

thepublicandorgansofstatewillbeable toaccess thesystemtoverify

validity of certificates they receive. In addition, the system allows the

B-BBEECommissiontomonitorthestateofB-BBEEcomplianceandanalyse

trends for purposes of producing the report on the National Status of

Transformation. The B-BBEE Commission is in the process of developing

phase two of the portal system thatwill enable the system to integrate

withotherdepartmentsespeciallyCentralSupplierDatabase.

Asat31December2018theB-BBEECommissionreceivedatotalofthree

hundred and thirty-seven (337) compliance reports since inception from

public companies listed in the JohannesburgStockExchange (JSE) in line

withtherequirementofsection13GoftheB-BBEEAct.Ofthe337received

compliancereports,threehundredandeight(308)wereassessedasat31

December2018.Sinceinceptiontill31December2018fourhundredand

eighty-four(484)complaintshavebeenfiledandaregettingmorecomplex

ascreativestructuresemergefromthemarket.

The need for funding, human resource and office space remain the key

challengefortheB-BBEECommission.TheNationalTreasuryhadindicated

thatduetothefiscalconstraints,thedtimustidentifythebudgetwithinits

resources,whichwillenableNationalTreasurytore-allocatethosefundsto

theB-BBEECommission.TheB-BBEECommissionwillcontinuetoengage

withthedtiontheseissues.

6.2 SWOT Analysis

SWOT analysis enables an organisation to examine and identify both

internal and external influences. Themain objective of SWOT analysis is

tohelptheorganisationevaluateanddevelopawarenessofallfactorsthat

may impact on the organisation’s decision or achieving strategic goals.

ThetablebelowprovidessummarizedSWOTanalysiselementsthatwere

identifiedduringourstrategysession:

Table1:ListofStrengthsandWeaknesses

Strengths Weaknesses

• Dedicationandteamwork

• Knowledge,expertiseandclearmandate

• Understandingofcomplementarylegislation

• Abilitytosimplifythelegislation

• Creationofatalentpool

• Educating,raisingawarenessandadvocacy

• Learningandtrainingopportunities

• Remedialinterventions

• Inadequatebudgetandnopermanent officespacetooperatein

• Humanresourceconstraints

• Limitationinthelegislation,e.g.noTribunal,overcriminalisationoftheB-BBEEAct

• Redtapeandbureaucracy–turnaroundtimesondecisions and processes slow

• Languagebarriersaffectingstakeholderunderstandingofthelegislation

• Operationalprocessesanddatamanagementnotautomated

Table2:ListofOpportunitiesandThreats

Opportunities Threats

• Raiseadditionalrevenuethroughfees• Eradicatefrontingpractices• Createandinnovatesolutions• MakingB-BBEEtransactionsandschemesmoretransparent• Automateoperationalprocessesanddatamanagement• Morevisibilityandabilitytoinfluencethediscourseand

make impact • Upscaleyouthemployment• CommunicatingtheB-BBEECommission’sachievementsand

impact• Collaborationwithotherinstitutions.

• Lackofpoliticalbuy-inandsupportforB-BBEE• Lackofconsultationindevelopmentorchangesto

policy,legislationandcodes• NegativereportsonB-BBEE• Frontingpractices• CircumventionofthelawthroughB-BBEEmodels• InconsistentapplicationofB-BBEEbygovernment

departmentsandentities• Resistancebystakeholders• Cybercrime• Regulatoryuncertainty• Lackofintegrityinverificationprocesses• Misconceptionthatgovernmentdepartmentsdo

notneedtocomplywithB-BBEEAct,andtoundergoverificationoftheirB-BBEEclaims

• LackofconsequenceforgovernmentdepartmentsthatarenotcomplyingwithB-BBEEAct

10 Strategy Plan | 2019/20-2023/24

6.3 Organisational environment

TheB-BBEECommissioncurrentlyoperateswithlimitedpersonnel.Thechallengefacingtheorganisationincludesinabilitytosecurefundingandtoattract

skilled,experiencedpeoplewithrequisiteexpertisewhowillhitthegroundrunninguponjoiningtheorganisation.TheworkoftheB-BBEECommissionishighly

specialisedandtechnical.Tablebelowlistsofidentifiedchallengeswithpossibleinterventions:

Further,asourmandateisthroughoutthecountry,efficiencyandeffectivenessarecriticaltoreachingallcornersofSouthAfricathroughcreativeanduser-

friendlymeans.Wewilloperateinacost-effectivemanner,usetax-payers’moneywiththenecessarydiligenceandutmostcare,andinamannerthatwillnot

unnecessarilyaddtocomplianceandregulatoryburden.Highleveloperationalsystemsandtoolsarenecessary.

ThehighlevelOrganisationalStructureshownbelowisbasedonthedefinedstrategicgoalsoftheB-BBEECommissioninformedbyourmandateintheB-BBEE

Act,takingintoaccountthefiscalconstraints.Wearebuildingthestructuretomeettherequirementovertheinitialplanningperiod,anditisexpectedthatthis

structurewillberevieweduponimplementationwithupdatesandchangeswherenecessarytofullycarryoutthemandate.Theorganisationaldesignprocess

hasbeenfinalised.

Table3:ListofChallengesandInterventions

Challenges Interventions

1. Inadequatebudget,nopermanentofficespacetooperateandhuman

resourceconstraints.

- Applyforadditionalbudgetfromthedti.

- Engagethedtitosourceofficespace.

2. LackofimplementationoftheB-BBEEActbyorgansofstates,public

entitiesandSETAs[s10and13G].

- RefertorelevantportfoliocommitteesandengagewithDPME

andAuditor-General.

- Pursuenon-complianceintermsoftheB-BBEEAct.

- Refertotheboardsofentities(SocialandEthicsCommittees).

3. SectorCouncilissuingclarificationandadviceonB-BBEE.- Monitorimplementationofthereferralprotocolandinvoke

trumpingprovision.

4. SectorCodes/Chartersthatarenotaligned. - Invoketrumpingprovision.

5. Continuingharmfulconductwhilethematterisunderinvestigation. - Courtrelief/interdict[s13J(4)].

OrganisationalStructure

Broa

d-Ba

sedBlackEcon

omicEmpo

wermen

tCo

mmission

Organ

isati

onalStructure

Min

iste

r of

Trad

ean

dIndu

stry

Com

mis

sion

er

Depu

ty

Com

mis

sion

er

Com

pany

Se

cret

aria

t

Executi

veM

anager:

Com

plia

nce

Chie

f Eco

nom

ist

Executi

veM

anager:

Investigatio

nsand

En

forc

emen

t

Executi

veM

anager:

Organ

isati

onalStrateg

yan

dPe

rforman

ce

ChiefO

peratin

gOfficer

(CFO

Des

igna

te)

ChiefLegalAdv

isor

13Strategy Plan | 2019/20-2023/24

14 Strategy Plan | 2019/20-2023/24

6.4 Description of the strategic planning process

TheB-BBEECommissionconductedanextensivestrategicandannualperformanceplanningsessiontoensureobjectivityandfocus,andinaccordancewith

theguidelinesprovidedforpublicentities.Thiswasprecededbytheinitialassessmentoftherequirements,themandate,thecontext,thepolicyframework,

thenecessarydrivers,andthedeliverymodel.

Environmental(internalandexternal)factorsthatimpactedorganisationaloperationstoachieveitsstrategicobjectivesinthepreviousandcurrentfinancial

yearwereconsideredduringthestrategicplanningsession.ThefactthatmajorB-BBEEtransactionthresholdwaspublishedlatewasalsonotedasitimpacted

ontheassessmentprocessofregisteredmajorB-BBEEtransactions.

Theprocess followed in thedevelopmentof thisstrategywasexplained,clarifiedandunderstoodbyallparticipantsover theperiodtobuild thestrategy.

Mission,Vision,BrandPromiseandValuesweredescribed.TheprocessthenprogressedtoStrategicGoalsdefinitionwithnecessaryrevisitsandrevisions.For

eachgoal,StrategicObjectivesweredefined,alongwiththeirOutputs(deliverables).HighlevelPerformanceMeasuresforeachOutputwereagreed,andthen

Actionsweredescribedovertheupcomingfinancialyears’quartersandforwardforthefollowingfouryears.

Thisdirectlyinformedtheorganisationalstructureandbudgetrequirements.AdditionalcomponentsfortheAnnualPerformancePlanwerebuilt.Allparticipants

weregiventheopportunitytofurtherreviewthestrategicplanandmakecommentsandsuggestions.Theresultisadevelopedstrategicplan,withbuy-infrom

theparticipatingteam.

6.5 Strategic outcome oriented goals of the entity

TheB-BBEECommissionseekstosupportboththeNDP2030vision,aswellasthedti,asfollows:

Strategic Goals Strategic Goal Statement

1. Safeguardingtheoutcomesofan

inclusiveeconomy

SupportsNDPOutcome4–decentemploymentthroughinclusivegrowth.

Facilitatebroad-basedeconomicempowermentthroughtargetedinterventionstoachievemore

inclusivegrowth.

2. Implementingcorrective

enforcementtoachieve

compliance

SupportsNDPOutcome11–CreateabetterSouthAfricaandabetterworld.

Createafairregulatoryenvironmentthatenablestransformationaldevelopmentinanequitableand

sociallyresponsiblemanner

3. Researching,analyzingand

reportingonthestateof

transformation

Providestrendandotherin-depthanalysisineasytoreadformatstomeasureboththesuccessofthe

B-BBEECommissionandtransformationgainsacrossSouthAfrica.

Facilitatebroad-basedeconomicempowermentthroughtargetedinterventionstoachievemore

inclusivegrowth

4. Collaboratingwithrelevant

stakeholderstoadvance

transformation

ExtendsrelationshipswithkeystakeholdersforthebettermentoftheeconomyinrelationtoB-BBEE

SupportsNDPOutcome12–Anefficient,effectiveanddevelopment-orientedpublicservice

Promoteaprofessional,ethical,dynamiccompetitiveandcustomer-focusedworkingenvironmentthat

ensureseffectiveandefficientservicedelivery

Createafairregulatoryenvironmentthatenablestransformationaldevelopmentinanequitableand

sociallyresponsiblemanner

5. Developingcapabilityandcapacity

oftheCommissiontodeliveron

its mandate.

SupportsNDPOutcome12–Anefficient,effectiveanddevelopment-orientedpublicservice

Promoteaprofessional,ethical,dynamiccompetitiveandcustomer-focusedworkingenvironmentthat

ensureseffectiveandefficientservicedelivery

15Strategy Plan | 2019/20-2023/24

PartB:Strategic objectives

16 Strategy Plan | 2019/20-2023/24

TheB-BBEECommissionisformedtocontributetotheaccelerationofeconomictransformation.TheB-BBEECommissionhasformulatedstrategicobjectives

tomeetitsmandate.Beingitsfirstfive-yearplan,changesareanticipatedwithinthisperiodasstart-upactivitiesendandtheentitymatures.Thishasbeen

takenintoaccountintheoperationalstrategy,includingphasingactivitiesovertheperiod.Thefollowingprogrammesareseenaskeytoachieveintheshort

tomediumterm.

7. Programme 1: Compliance

Thestrategicgoalofprogramme1istosafeguardtheoutcomesofaninclusiveeconomy.

7.1 Strategic objective description

PartB:Strategicobjectives

Strategicobjective Description Outputs/deliverables

GuidetheimplementationoftheAct

TheB-BBEECommissionprovidinganswers

tospecificqueriesandrequestsforadvice,

aswellasformulatingdirectives,explanatory

notesandclarificationontheapproachand

interpretationwhererequired.

AdvisoryOpinions/Clarifications

PracticeNotes/Guides

Guidelines/Brochures

Educationandawareness

AssessB-BBEETransactionsand

provideadvice

Compliancecheckspriortodealsbeing

completedtoreducethenumberof

violations.ByregisteringB-BBEEtransactions,

theB-BBEECommissionwillhaveahandle

onthenumberoftransactions,extentand

rateofcomplianceandbeabletoadvise

appropriately.

Certificatesofregistration

RemedialInstruction

B-BBEETransactionsRegister

LeniencyprogrammeEncouragedisclosureoftransactionsthatare

notregisteredforassessmentofcompliance

withtheB-BBEEAct.

AssessComplianceReportsand

providefeedback

TheB-BBEECommissionreceivesandassess

compliancereportsandprovidefeedback

withregardstothestateofcomplianceasper

theB-BBEEAct.

Certificatesofcompliance/rejection

ComplianceRegister

Strategicobjective GuidetheimplementationoftheB-BBEEAct

ObjectiveStatement1.1Requestsforadvicearedocumentedinwritingtothepersonwhoraisedthemwithin30working

daysofreceipt

Baseline Adviceprovidedwithin30daysofreceipt

Strategicobjective GuidetheimplementationoftheAct

ObjectiveStatement1.2ExplanatoryNotes/Guidesareissuedtwiceayeartoallstakeholdersonbothhardcopyand

electronically

Baseline Practicenotes/guidesprovidedtwiceannually

17Strategy Plan | 2019/20-2023/24

Strategicobjective ConductbothproactiveandreactiveInvestigations

ObjectiveStatement2.1Percentageofreportsproducedoninvestigationsconductedwithin12monthsuponreceiptof

compliant.

Baseline 80%reportsonaverageproduced

Strategicobjective Encourageandguideresolutiontodisputes

ObjectiveStatement 2.2PercentageofidentifiedcasesforpossibleAlternativeDisputeResolutionprocess

Baseline 100%identifiedcasesanalysedandinvestigatedforADRprocess

Strategicobjective Referforprosecutionwhennecessary

ObjectiveStatement 2.3Updatedregisterofcasesreferredforprosecution

Baseline Onecasereferredforprosecutionifany

Strategicobjective AssessB-BBEETransactionsandprovideadvice

ObjectiveStatement1.3CompliancewiththeB-BBEEActandCorporateGovernancebyensuringtheprocesstobecome

compliantisfollowedbynon-compliantregistrations

Baseline Assesstransactionswithin90daysuponregistration(recommendation)

7.2 Resource Considerations

TheB-BBEECommissionconcludeditsorganisationaldesignprocess,whichwillensurethatadequateresourcesareemployedtobuildcapacityforthecore

functionsoftheorganisationinorderfortheentitytodeliveronitsmandateandtoimproveservicedelivery.Thestaffcomplementoverthenextfiveyearsis

projectedtobeasfollows:

ProjectedNumberofEmployees 2019/20 2020/21 2021/2022 2022/23 2023/2024

Numberofpermanentemployees 25 25 25 25 25

Numberinternsand/trainees 2 2 2 2 2

TotalStaffComplementfortheProgramme

27 27 27 27 27

7.3 Risk Management

TheStrategicRiskscutacrossalltheprogrammesandstrategicobjectivesandarediscussedunderparagraph12.2.

8.Programme2:Investigationsandenforcement

Thestrategicgoalofprogramme2istoimplementcorrectiveenforcement.toachievecompliance



Conductbothproactiveand

reactiveInvestigations.

Conductproandre-activeinvestigationsandproducereportswithrecommendations–

includessummons,publichearingsandsitevisitswhererequired.

Investigationfindings

Facilitateandguide

resolutionofdisputes

throughADRandferalto

otherregulatoryentities.

Resolveandrefercasesforalternativedisputeresolution. ADRAgreements

Referraltootherregulatoryentities. Noticeofreferral

Referforprosecutionwhen

necessary.

Referrelevantcasesforprosecution. Noticeofreferral

18 Strategy Plan | 2019/20-2023/24





8.3 Risk Management

TheStrategicRiskscutacrossallthestrategicobjectivesandarediscussedunderparagraph12.2.

9.Programme3:Research,analysisandreporting

Thestrategicgoalofprogramme3isresearching,analyzingandreportingonthestateoftransformation



Collectandanalysedataby

economic sectors.

CollatedataforanalysisandmonitoringoftrendsfromtheB-BBEEcertificate

portalsystemforproductionofsectorreportandtrendtracking.

Sector trends Report

ReportonB-BBEENational

StatusandTransformation

Trends.

Collateandanalysecompliancereports,sectorcouncilreports,majorB-BBEE

Transactions,B-BBEEcertificateportalandproducereportonNationalStateof

B-BBEEEconomicTransformation.

‘NationalStatus’AnnualReport





28 28 28 28 28

7.3 Risk Management

TheStrategicRiskscutacrossalltheprogrammesandstrategicobjectivesandarediscussedunderparagraph12.2.

Strategicobjective Collectandanalysedatabyeconomicsectors

ObjectiveStatement3.1SectorReportshowingyearonyeartransformationimprovementovertheB-BBEEelementsby

sector

Baseline Tworeportproducedannually

Strategicobjective ReportonNationalStatusandTransformationTrends

ObjectiveStatement 3.2‘NationalStatus’ReportproducedannuallyinQ1forpreviousyear

Baseline Onereportproduced









14 14 14 14 14

19Strategy Plan | 2019/20-2023/24

9.3 Risk Management


10.Programme4:RelationshipBuilding/StakeholderRelations

Thestrategicgoalofprogramme4iscollaboratingwithrelevantstakeholderstoadvancetransformation



Buildmutualrelationshipswithselected

partners

Identifystakeholders,set-upmeetings,agreeonareasofmutual

interestandenterintomemorandaofagreement/binding

agreements.

MemorandaofCooperation

Bindingagreementswithenforcement

Agencies

ReferralProtocol

Developaservicedeliveryplanforcustomersatisfactory

service.

ServiceDeliveryImprovementPlan

Strategicobjective Buildmutualrelationshipswithselectedpartners

ObjectiveStatement 4.1Segmentstakeholdersandforthoseselectedpartners,generatestakeholderengagementplans

Baseline ImplementStakeholderengagementplansandrolloutcommunicationstrategy

ObjectiveStatement 4.2Improvecustomerservicedelivery.

Baseline NewMeasure









5 5 5 5 5

10.3 Risk Management

TheStrategicRiskscutacrossallthestrategicobjectivesandarediscussedunderparagraph12.2

20 Strategy Plan | 2019/20-2023/24

Strategicobjective DevelopanICTStrategyandinfrastructure

ObjectiveStatement 5.1Intergrateddatabasedevelopedandimplemented

Baseline Newmeasure

Strategicobjective DevelopandmaintainSupportSystems

ObjectiveStatement 5.2Numberofauditqualifications

Baseline ICTplanproduced

Strategicobjective DevelopandmaintainSupportSystems

ObjectiveStatement 5.3Numberofsystemsdevelopedandmaintained

Baseline Fivesystem

Strategicobjective StafftheB-BBEECommissionanddevelopatalentpipeline.

ObjectiveStatement 5.4Percentageofofficialstrainedforcapacitybuilding

Baseline Sixtypercentofficialstrained.

Programme5:Administration

Thestrategicobjectiveofprogramme5isdevelopingcapabilityandcapacityoftheB-BBEECommissiontodeliveron

its mandate.



DevelopanICTStrategyand

infrastructure

AssessB-BBEECommission’sneeds,engagewithstakeholders,

conductbenchmarkstudy,collateinformation,conferwith

stakeholdersanddevelopICTstrategy,integrateddata-base(data

warehouse)aswellasinfrastructure.

Integrateddatabases

(datawarehouse)oftheB-BBEE

Commission

ICTinfrastructure

DevelopandmaintainSupportSystems PrioritisesystemsinlinewithICTneedsoftheB-BBEE

Commission and maintain.

Financialsystem

HumanResourceManagementand

Development(HRM&D)System

ContactCentreManagementSystem

B-BBEECertificatePortal

CaseManagementSystem

StafftheB-BBEECommissionanddevelop

a talent pipeline.

DevelopandimplementstrategyforcapacitybuildingofB-BBEE

Commissionstaffandcreationoftalentpool.

Capacitybuildingprogrammeand

internshipprogram

21Strategy Plan | 2019/20-2023/24









49 49 49 49 49

11.3 Risk Management


PartC:Linksto other plans

23Strategy Plan | 2019/20-2023/24

PartC:Linkstootherplans12.ExistingPlans

12.1 Financial Plan

EconomicClassification 2019/20 Rm 2020/21 Rm 2021/22 Rm 2023/23 Rm

CompensationofEmployees 86 000 91 000 97 000 112 000

GoodsandServices 47 000 50 000 52 000 56 000

Totaloperationalexpenditure 133 000 141 000 149 000 168 000

Paymentforcapitalassets 5 000 5 000 5 000 5 000

Totalexpenditure 138 000 146 000 154 000 173 000

12.2 Risk Management Plan

StrategicRiskshavebeenidentifiedanddescribedbelowwiththeirmitigatingactions.TheRiskCommitteewillcontroltheregisterandupdatesofboth

StrategicRisksandOperationalRisks.

Risk1 LackofinfrastructuretosupporttheB-BBEECommission

Mitigation 6. MonitortheimplementtheICTStrategy.

7. TimelyprocurementofICTinfrastructure.

Risk2 Inadequatehumanresourcestodeliveronthemandate

Mitigation 1.Recruitmentandsecondmentofmulti-skilledandexperiencedhumanresource

2.Graduatetrainingprogramme–buildcapacityorganically

3.Capacitybuildingprogramme,traininganddevelopmentofresources.

Risk3 InadequatefinancialresourcestoeffectivelyexecutetheB-BBEECommission’smandate

Mitigation 1.Applyforadditionalbudgetfromthedti.

Risk4 Non–compliancewithcorrectiveactionandrecommendationstostakeholders

Mitigation 1.Enforcement

Risk5 LitigationagainstB-BBEECommissionandClients

1.Properinvestigationsplan

2.Adequatelegalsupport

Risk6 RegulatoryUncertainty

Mitigation 1. IssuepracticeguidesonB-BBEE

2. SLAwiththedtionpolicymatters

13.Linkstothelong-terminfrastructureandothercapitalplans

Noneatcurrenttime

14.Conditionalgrants

Notapplicable

15.Publicentities

Notapplicable

16.Public-privatepartnerships

Notapplicable

24 Strategy Plan | 2019/20-2023/24

AnnexureA–Technicalindicatordescriptions

Strategic Goal 1 - Safeguarding the outcomes of an inclusive economy

Programme 1 - Compliance

StrategicObjective Educateallstakeholdersinthepurposeandvisionandimplementationtoachieve anall-inclusiveeconomy

Indicatortitle 1.1PercentageofeducationmaterialsproducedbytheB-BBEECommissionwithFogIndexof8or less

Shortdefinition TheB-BBEECommissionmustprovideelectronicandprintedmaterialsinalignmentwiththeB-BBEEActinan

easytoreadformatrelevanttotheaudience.

Purpose/importance Relevanteducationalinformationmustbemadeavailabletoallaudiencesinordertoeducatestakeholdersin

thepurposeandvisionoftheB-BBEEAct.UnderstandingthiswillaidintheoverallspiritofB-BBEEgoals.

Source/collectionofdata EducationmaterialsmaybeoutsourcedorproducedinternallybyB-BBEECommissionstaff.

Methodofcalculation UtilisetheFogIndexmethodologytoensurethematerialsareunderstandable.Theoutsidelimitisalevelof8.

Datalimitations None

Typeofindicator Outcome

Calculationtype Cumulative

Reportingcycle Quarterly

BaselineIndicator Twoannually

Desiredperformance AlowerFogIndexisdesirable

IndicatorResponsibility ExecutiveManager:ComplianceandExecutiveManager:OrganizationalStrategy&Performance

StrategicObjective GuideimplementationoftheB-BBEEAct

IndicatorTitle 1.2Requestsforadvicearedocumentedinwritingwithin30workingdaysofreceipt.

Shortdefinition AdvisoryOpinionsaregeneratedinresponsetorequestsforadviceonB-BBEEissues.Thesemustberegistered,investigatedandfeedbacktorequestorwithinthespecificnumberofdays.

Purpose/importance Thepurposeistoensureallstakeholders’queriesaredealtwithinatimelymannerbyissuingadvisoryopinionsinresponsetoallqueries.

Source/collectionofdata Allrequestsforadvicearerecordedcentrallywithdatereceived,dateoffeedbackanddateclosed(finalised).

Methodofcalculation PercentageofAdvisoryOpinionsmeetingthe30workingdaylimitagainstallrequestsforadvice.


Typeofindicator Outputs

Calculationtype Non-cumulative


BaselineIndicator Adviceprovidedtoclient30daysuponreceipt

Desiredperformance 100%

IndicatorResponsibility ExecutiveManager:Compliance

25Strategy Plan | 2019/20-2023/24

StrategicObjective GuideimplementationoftheB-BBEEAct

Indicatortitle 1.3Requestsforclarificationsaredocumentedinwritingwithin5workingdaysofreceipt.

Shortdefinition ClarificationsaregeneratedinresponsetorequestsforclarityonB-BBEEissues.Thesemustberegisteredandprovide

feedbacktorequestorwithinthespecificnumberofdays.

Purpose/importance Thepurposeistoensureallstakeholders’queriesaredealtwithinatimelymannerbyissuingclarificationinresponse

toallqueries.

Source/collectionofdata Allrequestsforclarificationarerecordedcentrallywithdatereceived,dateoffeedbackanddateclosed(finalised).

Methodofcalculation PercentageofClarificationsprovidedwithinthe5workingdayslimitagainstallrequestsforadvice.





BaselineIndicator Clarificationsprovidedtoclientwithin5daysuponreceipt



StrategicObjective GuideimplementationoftheAct

Indicatortitle 1.4ExplanatoryNotes/Guidesmustbeissuedtwiceayeartoallstakeholdersonbothhard copyandelectronically

Shortdefinition PracticenotesprovidefeedbacktostakeholderstoclarifyanyareasoftheB-BBEEActwhichmayrequireit.

Purpose/importance ThepurposeistoensureallstakeholdersreceivefurtherclarificationonvariouspartsoftheActasrequired.

Source/collectionofdata TheB-BBEECommissioncollatestherelevanttopicsforthePracticeNotesbasedonareasraisedbystakeholders,

informedbyadvisorytopicsandinternalresearch

Methodofcalculation NumberofPracticeNotesissuedperyear.




Reportingcycle Annually

BaselineIndicator Twopracticenotes/guidesissuedannually

Desiredperformance AdditionalPracticeNotesovertwocouldbedeemedanimprovement,ifqualityismaintained.


26 Strategy Plan | 2019/20-2023/24

StrategicObjective AssessB-BBEETransactions/initiativesandprovideadvice

Indicatortitle 1.5CompliancewiththeB-BBEEActandCorporateGovernance

Shortdefinition TheB-BBEECommissionischargedwithassuringthatB-BBEEtransactionscomplywiththeB-BBEEActandCompanies

Acts.

Purpose/importance ThepurposeistoensureallB-BBEEtransactionsarelegalinrespectofthelaw.ItisimportantthattheB-BBEE

Commissiondrivecomplianceandbestpractice.

Source/collectionofdata AllB-BBEEtransactionsregisteredwiththeB-BBEECommissionwillbeauditedinternally.Non-compliancewillbedealt

withintermsofspecificprocedures.

Methodofcalculation Percentageofallnon-complianttransactionsshowingadherencetothedefinedprocesstobecomecompliant.

Datalimitations OnlythoseB-BBEEtransactionsabovethegazettethreshold,thatareregistered,canbemeasured.


Calculationtype Non-Cumulative

Reportingcycle Annually

BaselineIndicator New

Desiredperformance Allnon-complianttransactionsshouldbefollowingthedefinedstepsso100%isdesirable.


StrategicObjective AssessB-BBEETransactions/initiativesandprovideadvice

Indicatortitle 1.6RegisterofB-BBEETransactions

Shortdefinition TheB-BBEECommissionischargedwithregisteringallB-BBEEtransactions(abovethreshold)whichshouldbe

publishedelectronically

Purpose/importance ThepurposeistoensureallB-BBEEtransactionsarelegalinrespectofthelaw.ItisimportantthattheB-BBEE

Commissiondrivecomplianceandbestpractice.

Source/collectionofdata AllB-BBEEtransactionsregisteredwiththeB-BBEECommissionwillbeauditedinternally.Non-compliancewillbedealt

withintermsofspecificprocedures.

Methodofcalculation Percentageofallnon-complianttransactionsshowingadherencetothedefinedprocesstobecomecompliant.

Datalimitations OnlythoseB-BBEEtransactionsabovethegazettethreshold,thatareregistered,canbemeasured.




BaselineIndicator Assesstransactionswithin90daysuponregistration

Desiredperformance Amonthlyupdatemustbepublished


27Strategy Plan | 2019/20-2023/24

StrategicObjective AssessComplianceReportsandprovidefeedback

Indicatortitle 1.7Compliancereportsinlinewithsection13G

Shortdefinition TheB-BBEECommissionwillacknowledgereceiptandassessthecompliancereportsandprovidefeedbackwith

regardstostateofcomplianceaspertheB-BBEEAct

Purpose/importance ThepurposeistoensuretransparencywithB-BBEEcompliance

Source/collectionofdata SubmittedcompliancereportfromJSElistedcompanies,organsofstate,state-ownedentities,SETA’s

Methodofcalculation CertificateofCompliance/rejectionwillbesenttoallentitiesthatsubmittedcompliancereporttoB-BBEECommission

Datalimitations Onlysubmittedcompliancereportwillbeassessedandanalysed




BaselineIndicator 90daystakentoassesscompliancereport

Desiredperformance Monthlyupdate


StrategicGoal2:Implementingcorrectiveenforcementtoachievecompliance

Programme 2: Investigations and Enforcement

StrategicObjective ConductbothproactiveandreactiveInvestigations

Indicatortitle 2.1Percentageofreportsproducedoninvestigationsconductedwithin12months uponreceiptofcompliant

Shortdefinition Investigationreportsmustberegistered,tracked,investigated,feedbackandclosedsothatthepersonwiththequery

feelsthevalue-addservicebeingprovidedbytheB-BBEECommission

Purpose/importance TheefficiencyoftheB-BBEECommissiontodealwithqueriesinatimelyfashionisofparamountimportance.

Source/collectionofdata Database

Methodofcalculation DaysbetweenDateofregistrationtoDateofclosureofeachreportshouldbelessthan365asapercentageofall

Investigativereports

Datalimitations Accuratedatesmustbecapturedandstored

Typeofindicator Activities


Reportingcycle Annual

BaselineIndicator Onaverage80%reportsproducedoninvestigationsconductedwithin12monthsuponreceiptofcompliant


IndicatorResponsibility ExecutiveManager:Investigations&Enforcement

28 Strategy Plan | 2019/20-2023/24

StrategicObjective FacilitateandguideresolutionofdisputesthroughADRandreferraltoother regulatoryentities

Indicatortitle 2.2PercentageofidentifiedcasesforpossibleAlternativeDisputeResolutionprocess

Shortdefinition Theobjectiveistotryandresolvedisputesbeforeprosecution.

Purpose/importance ThedesireistogetADRagreementinpreferencetoprosecution.

Source/collectionofdata Database

Methodofcalculation NumberofdisputesreachingADRagreements,asapercentageofalldisputes

Datalimitations Thedatabaseshouldbeabletotracktheoutcomeofthedisputeinordertohandoverdisputesforprosecutionif

consensuscannotbereached.




BaselineIndicator ThreecasesreferredforADR

Desiredperformance Thehigherthepercentage,thebettertheperformance


StrategicObjective Referforprosecutionwhennecessary

Indicatortitle 2.3Updatedregisterofcasesreferredforprosecution

Shortdefinition Whenconsensuscannotbereached,itisnecessarytohandoverdisputesforprosecution.Theregisterofthese

disputesneedstobetrackedandkeptuptodate.

Purpose/importance TheB-BBEECommissionisinterestedintheclosureofalldisputes.Thosegoingtoexternalpartiesforprosecution

needtobetrackeduntilclosure

Source/collectionofdata Register

Methodofcalculation Theregistermustbepublishedquarterly

Datalimitations DesireoftheprosecutingauthoritytokeeptheB-BBEECommissioninformedonprogressofallcasesitisassigned

Typeofindicator Outcomes



BaselineIndicator Onecasereferredforprosecutionifany

Desiredperformance 1publicationperquarter


29Strategy Plan | 2019/20-2023/24

StrategicGoal3:Researching,analyzingandreportingonthestateoftransformation

Programme 3: Research, Analysis & Reporting

StrategicObjective Collectandanalysedatabyeconomicsectors

Indicatortitle 3.1SectorReportshowingyearonyeartransformationimprovementovertheB-BBEE elements

Shortdefinition ApublishedreportoutliningtheperformanceofeachsectoracrosstheB-BBEEelements.Thescoresshouldbe

comparedtopreviousyeartoshowaconstantimprovement

Purpose/importance ThereachoftheB-BBEECommission’sinvolvedshouldbefeltacrosseachsectorandallelements.Thisreportwill

collatetheinformationwithcomparisonstopreviousyears

Source/collectionofdata ThedatabaseheldbytheB-BBEECommission(B-BBEEcertificateportalsystem)willholdtheoverallresultsofthe

sectorsperformanceacrosstheB—BBEEelements.

Methodofcalculation NumberofSectorreportspublished

Datalimitations Availabilityofthedatafromeachsector

Typeofindicator Impact



BaselineIndicator Two report

Desiredperformance Twoperyear

IndicatorResponsibility ChiefEconomist

StrategicObjective ReportonB-BBEENationalStatusandTransformationTrends

Indicatortitle 3.2‘NationalStatus’Reportproducedannually

Shortdefinition AreportoftheB-BBEEstatusasanation

Purpose/importance FeedbacktothestakeholdersastothestatusandreachoftheB-BBEECommission’swork

Source/collectionofdata Database(B-BBEEcertificatePortalsystem),Compliancereport,majorB-BBEEtransactions.

Methodofcalculation Numberofreportspublished

Datalimitations Contenttoproducethereportmayneedtobesourcedexternally




BaselineIndicator Onereport

Desiredperformance Oneperyear(publishedinthefirstquarterofthenextfinancialyear)


30 Strategy Plan | 2019/20-2023/24

StrategicObjective IncreasingtrendofB-BBEEownershipinlistedandnon-listedcompanies

Indicatortitle 3.3‘NationalStatus’Reportproducedannually

Shortdefinition TheimplementationoftheB-BBEEActcanbemeasuredbyexaminingtheequitythatblackpeopleownandthe

movementofblackpeopleinmanagementanddecisionmakingstructures,inkeyorganisations.

Purpose/importance TheownershipofblackpeopleinorganisationsisseenasakeymarkeroftheimpactofB-BBEEpolicy.Theupward

trendofownershipequityisdesirableeachyear.

Source/collectionofdata TheJSE(JohannesburgStockExchange)publishesownershipequityfiguresoflistedcompanies.Aselectionofother

keycompaniesmustbeincludedfromtheprivatesector.

Methodofcalculation Thepercentageofblackownershipequityoverallequity

Datalimitations Availabilityofprivatesectorinformation





Desiredperformance Theequityholdingandmanagementcontrolshouldbeincreasingovertime


StrategicObjective AssessimpactofB-BBEECommission’sinitiatives

Indicatortitle 3.4RegulatoryImpactAssessmentReportshowingayearonyeardeclineinthefactorsinhibitingpositivechange

Shortdefinition TheB-BBEECommissionistoproduceareportannuallyhighlightingthefactorsinhibitingpositivechange,accordingto

the5elementsofB-BBEE

Purpose/importance ItisvitalthattheB-BBEECommissionsharesthechallengesandsuccessesofitsinitiativeswithitsstakeholders.

Source/collectionofdata Databases

Methodofcalculation NumberofImpactassessmentReportsinayear

Datalimitations AvailabilityofdatafromexternalsourcesandobjectiveinterpretationoftheB-BBEEposition





Desiredperformance One


31Strategy Plan | 2019/20-2023/24

StrategicGoal4:Collaboratingwithrelevantstakeholderstoadvancetransformation

Programme 4: Relationship Building/Stakeholder Relations

StrategicObjective Buildmutualrelationshipswithselectedpartners

Indicatortitle 4.1Segmentstakeholdersforthoseselectedpartnersandgeneratestakeholderengagementplans

Shortdefinition TheB-BBEECommissionmustengagewithpartnerstoformrelationshipsthataremutuallybeneficialtoaidinthe

achievementoftheB-BBEEgoals.Byselectingstakeholdersanddevelopingplanstoworkcloselytogetheristhefirst

stepintheprocess

Purpose/importance TheimplementationandsuccessoftheB-BBEEinitiativescannotbedonebytheB-BBEECommissionalone.Key

stakeholdersneedtoplayanroleinunderstanding,advocatingandimplementing

Source/collectionofdata Internalselectionofstakeholdersandgenerationofanindividualplantoengagewiththeentity

Methodofcalculation Alistofselectedstakeholdersmustexistandaplanforeachonemustexist.Thecalculationisthepercentageof

existingplansforstakeholdersallselectedstakeholders


Typeofindicator Output



BaselineIndicator Twomemorandaofunderstandingenteredtoperyear

Desiredperformance Twomemorandaofunderstandingenteredtoperyear

IndicatorResponsibility ExecutiveManager:OrganisationalStrategyandPerformance

StrategicGoal5:DevelopingcapabilityandcapacityoftheB-BBEECommissiontodeliver onitsmandate

Programme 5: Administration

StrategicObjective DevelopanICTStrategyandinfrastructure

Indicatortitle 5.1ICT5yearplanproducedandapproved

Shortdefinition TheICTplanwilldescribetheinfrastructure,application,dataandsecuritylayersrequiredtosupporttheCommission’s

activities

Purpose/importance TheB-BBEECommissionreliesheavilyonICTforthestorageofinformationforitsactivities.Itisamajorbudgetitem

andshouldbecloselymanagedtotheplan.

Source/collectionofdata ICTplanshouldbeavailableelectronicallyforallCommitteesandinternalstakeholders

Methodofcalculation Theplanshouldbeupdatedannually,approvedandbereadilyavailable.


Typeofindicator Activities



BaselineIndicator OneICTplan

Desiredperformance Oneapprovedplan

IndicatorResponsibility ChiefOperationsOfficer

32 Strategy Plan | 2019/20-2023/24

StrategicObjective DevelopandmaintainSupportSystems

Indicatortitle 5.2Numberofsystemsdevelopedandmaintained

Shortdefinition Developmentofoperationalsystem

Purpose/importance B-BBEECommissionrequiresautomatedsystemstoimproveefficiency

Source/collectionofdata Benchmarkwithotherorgansofstate

Methodofcalculation Numberofsystemsdeveloped


Typeofindicator Outcome



BaselineIndicator Onesystem

Desiredperformance Fivesystems


StrategicObjective StafftheB-BBEECommissionanddevelopatalentpipeline

Indicatortitle 5.3NumberofgraduatesonInternshipandTraineeProgramme

Shortdefinition TheInternshipandTraineeProgrammeexiststoensuresteadygrowthoftheavailableresourcebaseforboththe

CommissionandSouthAfricaatlarge

Purpose/importance GrowingyoungpeopleorganicallyintothevaluesandvisionoftheB-BBEECommissionisafuture-proofmechanismto

ensurethesuccessoftheB-BBEECommission

Source/collectionofdata HumanResourcerecords

Methodofcalculation CountofthenumberofgraduatesonanofficialB-BBEECommissionprogrammedividedbythenumberoftotalstaffof

theB-BBEECommission


Typeofindicator Capacitation



BaselineIndicator 6

Desiredperformance Thelevelisdependentontheavailablebudgettosupportthegraduates.


StrategicObjective StafftheB-BBEECommissionanddevelopatalentpipeline

Indicatortitle 5.4Percentageofofficialstrainedforcapacitybuilding

Shortdefinition StaffdevelopmentandtrainingexisttoensureimprovementofskillsandknowledgeofemployeeswithintheB-BBEE

Commission.

Purpose/importance Staffdevelopmentandtrainingassistincreatingapoolofreadilyavailableandadequatereplacementsforpersonnel

whomayleaveormoveupintheB-BBEECommission.

Source/collectionofdata HumanResourcerecords

Methodofcalculation Numberofstaffmemberstrainingannually


Typeofindicator Capacitation



BaselineIndicator 10



33Strategy Plan | 2019/20-2023/24

B-BBEECOMMISSION

34 Strategy Plan | 2019/20-2023/24

B-BBEECOMMISSION

35Strategy Plan | 2019/20-2023/24

B-BBEECOMMISSION

ContactusHotline:086 666 5432

Tel:+27(12)6490910 [email protected]

420WitchHazelAvenue

EcoGlades2,BlockC

EcoPark,Centurion,0144

B-BBEECOMMISSION

Documents

Strategy of theThe B-BBEE Commission strategic plans are linked to the dti objectives and goals of the National Development Plan (NDP). In order to achieve its strategic plans and