[South Africa] Trade Minister gazettes the draft B-BBEE Chartered Accountancy Sector Code
Members of the public have until 23 June 2019 to make inputs and comments on the Draft Broad-Based Black Economic Empowerment (B-BBEE) Chartered Accountancy Sector Code which was gazetted by the Minister for Trade and Industry (the dti), Dr Rob Davies.
In terms of Section 9 (5) of the B-BBEE, the draft Sector Code must be published for a 60 days public commentary period. The Ministry of Finance (Treasury), the South African Institute of Chartered Accountancy (SAICA) and the Independent Regulatory Board of Auditors (IRBA) as well as other stakeholders in the accountancy profession, participated in the drafting of the Charter.
The process to develop a Sector Code for the accountancy profession, the majority of which are members of SAICA and IRBA, was as a result of a need for the CA Charter Council to amend and align their Sector Code to the amended B-BBEE Generic Codes of Good Practise.
The amendment presented to the sector and its major constituencies, as unanimously consented to, with an opportunity to (i) increase the number of black people in the CA profession to reflect the demographics of the country (South Africa), (ii) ensure meaningful participation in and growth of the economy through empowering and enabling black CA’s, and (iii) ensure an equal opportunity and equitable income distribution.
Minister Davies states that the scope of application of the CA Sector Code will be applicable to all measured entities in the CA profession in its entirety including organisations in the public offering training; organisations in the commerce and industry, as well as government and parastatals offering training to the extent necessary to obtain the CA (SA) designation.
Davies indicates that key highlights of the draft sector codes include a higher target under the Ownership element of the Scorecard for exercisable voting rights and economic interest in the hands of Black people from 25% to 32,5%, of which 20% thereof is ring-fenced for ownership by Black CAs within the Sector.
“The 20% will facilitate an increase in the ownership patterns by Black CAs and thereby accelerate transformation in entities that dominate the Sector. The target for Learnerships, Apprenticeships and Internships under the Skills development element as a percentage of total employees is 18% of total employees compared to 2,5% of total employees in the Generic Scorecard,” says Davies.
Minister Davies adds that an important insertion in the Enterprise and Supplier Development element is a measure to capacitate Historically Disadvantaged Institutions in order to enable them to train Black CAs.
Members of the public and interested parties can forward their comments in writing for the attention of Mr Sipho Solfafa at firstname.lastname@example.org.