Remarks by Minister of Transport, Ms Sindisiwe Chikunga, on the occasion of the Broad Based Black Economic Empowernment Transport Sector Council held at Gallagher Estate, Gauteng on May 11, 2023
- Deputy Minister, Mr Lisa Mangcu
- KZN MEC for Transport and Community Liaison: Mr Hlomuka
- Gauteng MEC for Roads and Transport: Ms Diale-Tlabela
- Free State MEC for Community Safety Roads and Transport: Ms Letsoha-Mathae
- North West MEC for Community Safety and Transport Management: Mr Lehari
- Northern Cape MEC for Roads and Public Works: Ms Makatong
- Chairperson of the BBBEE Commission
- Chairperson of the BBBEE Transport Sector Council
- Chairpersons and board members of our SOEs
- CEO’s of our SOEs
- Captains of Maritime, Aviation, Roads, Rail, and Public Transport Industry;
- Ladies and gentlemen
As we gather here today to introduce the members of the BBBEE Transport Sector Council, I am filled with mixed emotions. The mixed emotions are that; I am excited that the council would be embarking on one of the greatest journey towards ensuring that there is economic justice in the transport sector. Equally I am saddened that this sector has not achieved much in ensuring that the historically disadvantaged individuals, in particular African and women are fully participation in the integrated transport value chain. But, I have hope, and believe that by the end of this B-BBEE Council we will be able to record significant progress in the transformation agenda of the Transport Sector.
Ladies and Gentlemen, in 1955 our forebears gathered at Kliptown and came up with a document called the Freedom Charter, which inter alia stated:
“The national wealth of our country, the heritage of South Africans, shall be re-
stored to the people; The mineral wealth beneath the soil, the Banks and monopoly
industry shall be transferred to the ownership of the people as a whole; All other
industry and trade shall be controlled to assist the wellbeing of the people”
HISTORY OF THE B-BBEE
In the late 1980s, whilst the ANC was still banned and in exile, it met with many organisation as it prepared itself to govern. Amongst these organisations was the Black Management Forum (BMF) which initiated the then Black Economic Empowerment (BEE) idea to the government in waiting. This debate around black economic empowerment was part of the advocacy strategy of the Forum, to begin to articulate clear views on potential economic pathways the new South Africa could take. The BMF argued that ‘economic freedom plus political emancipation equals total liberation’, this phrase was made popular by the late Don Mkhwanazi in the BMF.
As a listening and consultative movement of the people, the ANC continuously engaged with BMF and BMF drafted the first blue print on BEE which was handed to the then Deputy President, Thabo Mbeki. In 1999 the first BEE Commission (BEECOM) was formed. President Cyril Ramaphosa was requested by the then President Mbeki to chair the Commission, and key BMF leaders, Lot Ndlovu, Gavin Pieterse, and Dr Reuel Khoza remained intimately close to the progress of the Commission, that led to a ground-breaking report of 2001 which was a watershed moment in South Africa.
The 2001 BEE Commission report stated: “It is an integrated and coherent socio-economic process. It is located within the context of the country’s national transformation programme, namely the RDP (Reconstruction and Development Programme). It is aimed at redressing the imbalances of the past by seeking to substantially and equitably transfer and confer the ownership, management and control of South Africa’s financial and economic resources to the majority of the citizens. It seeks to ensure broader and meaningful participation in the economy by black people to achieve sustainable development and prosperity”.
I am restating this historical background to enable all of us who are tasked in ensuring that BBBEE is applied, harnessed, developed and enforced do so with that understanding and equally understand that the patience of our people is running thin day by day. This ANC government has done everything possible and has developed policies and legislative framework that enables socio-economic transformation. What has been missing are those we seek to transform and I need mention that the transformation agenda still remains our agenda till today. We are aware that there are those who call themselves democrats yet in every conference they question BBBEE and Employment Equity and are adamant that when they get to power they would not hesitate but scrap it. We are equally seriously concerned by those who are eager to take government to court on socio economic transformation policies and laws.
These democrats fail to understand that our Constitution, which is the supreme law of the land and that enjoins all of us to recognize the injustices of the past, honour those who suffered for justice and freedom in our land, heal the divisions of the past, establish a society based on democratic values, social justice and fundamental human rights and strive for achievement of equality.
As the new members of the Council, you are assured of the full support of this Ministry and the government as a whole. Consult with relevant
industry stakeholders but don’t over consult on matters that are clearly pronounced by our Constitution and other laws.
The Broad-Based Black Economic Empowerment (B-BBEE) Act provides for sectoral implementation of prescripts that formalize efforts for the building of an inclusive economy and requires that the respective economic sectors develop and agree on sector codes to drive the implementation of the Act.
The Integrated Transport Sector B-BBEE Codes are divided into eight sub-sector codes, namely:
- Aviation Sub-sector,
- Bus Sub-sector,
- Forwarding &; Clearing Sub-sector,
- Maritime Sub-sector,
- Rail Sub-sector,
- Road Freight Sub-sector,
- Taxi Sub-sector and Public Sector Sub-sector.
Therefore, the appointed Charter Council members represent the eight sub-sectors and the black designated groups.
In August 2009, the former Minister of Trade and Industry, Dr Rob Davies, issued a gazette in terms of Section 9(1) of the B-BBEE Act of 2003 by publishing Integrated Transport Sector B-BBEE Charter with its sub-sectors codes. The codes are binding to all stakeholders operating in the transport sector and legally binding on anyone doing business with transport departments and its public entities. Currently, the Integrated Transport Sector B-BBEE Codes are outdated and need to be urgently amended.
The Council will assist to address acute transformation challenges experienced in the main within the aviation, road freight and maritime sectors. The Charter Council’s first and most urgent task will be to ensure that the Integrated Transport Sector B-BBEE Codes are amended. The Council is required by the B-BBEE Act to report progress to the Presidential B-BBEE Advisory Council and the B-BBEE Commission on an annual basis.
Section 10 of the BBBEE Act states
“Every organ of state and public entity must apply any relevant code of good practice issued in terms of this Act in- (a)determining qualification criteria for the issuing of licenses,
concessions or other authorizations in respect of economic activity in terms of any law;
- developing and implementing a preferential procurement policy;
- developing criteria for entering into partnership with private sector;
- determining criteria for the awarding of incentives, grants and investment schemes in support of broad-based black economic empowerment.
It would interesting if I were to pause and ask by show of hands, how many of our SOEs, provinces and municipalities in issuing various types of transport licenses, permits and other authorizations have implemented this provision of the law. So, at times we have the enabling law but our own understanding of policy and laws is what prohibit us from achieving much needed economic justice. Where necessary we must amend our laws to suit the transformation agenda, we all agree upon.
The appointment of Council members will assist us to rapidly implement B-BBEE as a critical enabler of economic growth and social transformation. I congratulate each one of you on your appointment. I have no doubt that your combined expertise will bear a testimony to the journey ahead.
Your acceptance of this mandate is no small feat, as it carries the responsibility of leadership required to accelerate the urgent socio-economic recovery and reconstruction of our country and in the transport sector.
Please understand that each Member of this B-BBEE Council carries an internal great revolution which will help South Africa transform and grow developmentally; to a point where we can say we live in a democratic, non-racial, non-sexist, united and prosperous country.
And, I must say that due to the dire need for positive change, as we strives for the reconstruction and redevelopment of South Africa and its transport systems.
I hope we have B-BBEE Council Members who have:
- An unwavering commitment to serve the people of South Africa with no expectations of benefits to themselves — persons who are there to serve the people particularly the poor and vulnerable;
- Council Members with a sustained determination to conduct themselves in the most ethical manner at all times and never betray the ethical standards of their office;
- Members who are committed to the fullest extent, of their enormous intellectual capacity and personal energy to pursue the objectives of the a South Africa that is non-sexist, non-racial, prosperous, united and democratic;
- Council members possessing the necessary commitment to detail that will enable one correctly to identify the tactical imperatives to advance the gains of our democracy;
- B-BBEE Council members who are able to communicate well-thought, clear and relevant messages that assure everybody or most South Africans that there is purpose to their actions and a positive end-game to their sacrifices;
- We would like to believe that in this newly appointed Council Members we are officially appointing, are citizens who are industry experts in their own right. Who will choose to soldier on, and choose to remain loyal to the strategic objectives of the country even under difficult circumstances.
As I conclude, I wish you well in your individual and collective efforts to contribute to the building of a truly transformed and inclusive economy that must develop South Africa’s and allow opportunity for the realisation of potential.
In the words of Lot Ndlovu, I wish to say “BEE should not only be a definition of transformation, but a determinant and basis of South Africa’s democracy. BEE is the means or engine of achieving transformation. At the center of BEE is the economy or economic activity. To transform economic activity, the acquisition of economic resources by black people which includes three key elements-ownership, management and control, is paramount.”
I thank you.
