"black people" is a generic term which means African, Coloured or Indian persons who are natural persons and:

• Are citizens of the Republic of South Africa by birth or descent; or
• Are citizens of the Republic of South Africa by naturalisation before the commencement date of the Constitution of the Republic of South Africa Act of 1993; or
• Became citizens of the Republic of South Africa after the commencement date of the Constitution of the Republic of South Africa Act of 1993, but who, but for the Apartheid policy that had been in place prior to that date, would have been entitled to acquire citizenship by naturalisation prior to that date.

It means any transaction where goods and/or services are supplied to or acquired from a Related Person by an Enterprise where the goods and/or services are supplied at a significantly higher or lower rate than the market rate for such goods and/or services.

Window-dressing: This includes cases in which black people are appointed or introduced to an Enterprise on the basis of tokenism and may be:

• Discouraged or inhibited from substantially participating in the core activities of an Enterprise; and
• Discouraged or inhibited from substantially participating in the stated areas and/or levels of their participation;

Benefit Diversion: This includes initiatives implemented where the economic benefits received as a result of the BEE Status of an Enterprise do not flow to black people in the ratio as specified in the relevant legal documentation.

Opportunistic Intermediaries: This includes Enterprises which have concluded agreement with other Enterprises with a view to leveraging the Opportunistic

Intermediary's favourable BEE Status in circumstances where the agreement involves:

• Significant limitations or restrictions upon the identity of the Opportunistic Intermediary's suppliers, service providers, clients or customers;
• The maintenance of their business operations in a context reasonably considered improbable having regard to resources; and
• Terms and conditions which are not negotiated at arms-length on a fair and reasonable basis.

The Amendment Act provides that any person who knowingly engages in a fronting practice commits an offence. The definition of "knowingly" includes where the person has actual knowledge of the fronting practice as well as where the person concerned was in a position in which they reasonably ought to have had:

• Actual knowledge;
• Investigated the matter to the extent where they would have obtained actual knowledge; or
• Taken other measures which, if taken, would reasonably be expected to provide the person with actual knowledge, of the fronting or other misrepresentations regarding the BEE status of the enterprise

The Amendment Act criminalises fronting and other misrepresentations regarding the BEE status of an enterprise.

• Any person convicted of an offence in terms of the BEE Act may be liable to a fine or a maximum prison sentence of 10 years, or in the case of a juristic person, a fine of up to 10% of its annual turnover.
• And, any person convicted of an offence in terms of the BEE Act may not for a period of ten years from the date of conviction, contract or transact any business with any organ of state or public entity and will be registered in a register of tender defaulters with the National Treasury.

The Amendment Act not only introduces an offence for fronting, which was not the position previously, but it creates an offence for individuals who do not take proactive steps to ensure that fronting is not taking place in any ventures in which he or she may be involved.

Not necessarily. Depending on the size of your business and the requirement from the industry that your business is in, "Ownership" might be the last element to consider in order to get to the correct level. Market related prices can be achieved for the appropriate sale of part of the business in order to get the ownership points.

• A valid BEE Certificate will enable companies to submit tenders for government entities or companies competing in the economic value chain.
• Your company be able to produce a BEE Scorecard as required by the newly promulgated Preferential Procurement Act.
• Smaller BEE Verified companies can now compete against larger companies as suppliers to bigger companies across all industries.

Audits should be done once a year, however when there is a significant change in the business which could benefit your BEE score, a fresh audit or verification should be done to reflect that change. Why do we have an Employment Equity Act?

To achieve equity in the workplace, by

• Promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination; and
• Implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups, to ensure their equitable representation in all occupational categories and levels in the workforce.

To achieve equity in the workplace, by

• Promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination; and
• Implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups, to ensure their equitable representation in all occupational categories and levels in the workforce.

It is an employer who

• Employs 50 or more employees, or
• Has a total annual turnover as reflected in Schedule 4 of the Act, municipalities and organs of state. Employers can also volunteer to become designated employers.

• A designated employer must implement affirmative action measures for designated groups to achieve employment equity.
• In order to implement affirmative action measures, a designated employer must:

• • Consult with employees;
  • Conduct an analysis;
  • Prepare an employment equity plan; and
  • Report to the Director-General on progress made in the implementation of the plan.