B-BBEE Trusts and their legitimacy as true Ownership Models

by | Mar 29, 2023 | News, B-BBEE verifications, Documentation

Honeycomb BBE Ratings proudly implements and utilises B-BBEE Legislation as our sole basis for points awarded when conducting Verifications of Measured Entities.

Our Team consists of experienced directors and staff, who are highly trained in the BBBEE Codes of Good Practice, strongly believe that our decisions will always stand when challenged in a court of law; this is what we use to build the foundation of our company.

Since April 2019, the Broad-Based Black Economic Empowerment (BEE) commissioner, Zodwa Ntuli, has been on the warpath, declaring B-BBEE Trusts are illegal and do not encompass transformation as they are not legitimate Ownership Models.

However, on the 5th of February 2021, the Trade, Industry and Competition Minister Ebrahim Patel came out strongly in support of Broad-Based Ownership schemes including Ownership by Trusts, which he says are genuine BEE and must be recognised as such. Minister Patel went as far as to state that: “Everyone” agreed that (they) fall squarely within the definition of BEE.” Patel went on to say: “I think that these are the pioneers of BEE and should be recognized appropriately…”.

Honeycomb does not pay attention to opinions flying around in the BEE marketplace as this is a very volatile one.

The BBBEE Act specifically states that the commission is “an entity within the administration of the Department” (section 13B (1)) and that “the Minister may issue directives of a general nature, which are consistent with this Act, to the Commission concerning the performance of its functions and the Commission must comply with any such directive” (section 13B (4)).

We welcome Minister Patel’s clarification above as it has once again proven that by following the legislation one cannot go wrong.

On the 18th of February 2021, Honeycomb’s Operations Director, Kyle Mitchell, will be part of a panel of verification professionals from leading verification agencies to share valuable and practical insights on how to prepare for a Successful B-BBEE Verification.

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Honeycomb cares about our clients, our staff, and our country.

All the best, 

The Best Verification Agency for the BEE Verification Agencies Sector in the Top 500 Best Managed Companies in South Africa for the second consecutive year!

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