BY Parusha Desai Valodia
broad-based black economic empowerment (BBBEE)
South Africa: extension of time for B-BBEE submissions and filings during the lockdown
On 23 March 2020, South African President Ramaphosa announced a nationwide lockdown for 21 days with effect from midnight on Thursday, 26 March 2020 as part of government’s integrated measures to prevent and contain the spread of the coronavirus (COVID-19).
The nationwide lockdown will have a cascading effect on the operations of many South African businesses, courts and the regulators (including the Broad-Based Black Economic Empowerment (“B-BBEE”) Commission). To this end, the offices of the B-BBEE Commission will be closed from 27 March 2020 to 20 April 2020 and no submissions, filings, responses, documents and/or other correspondence pursuant to the B-BBEE Regulations 2016 will be accepted by the B-BBEE Commission.
So, what does this mean for entities who are obliged to register a major B-BBEE transaction and/or submit an annual B-BBEE compliance report pursuant to the B-BBEE Regulations?
- parties to a major B-BBEE transaction concluded between the period 11 March 2020 to 17 April 2020 are permitted to register the major B-BBEE transaction within 30 calendar days following the end of the lockdown period, notwithstanding the prescribed period contemplated in regulation 18(1) of the B-BBEE Regulations
- all JSE-listed entities, organs of state, public entities and SETAs that are required to submit their annual B-BBEE compliance report between the period 25 March 2020 to 17 April 2020, are permitted to submit their compliance reports within 30 calendar days following the end of the lockdown period, notwithstanding the prescribed period contemplated in regulation 12 of the B-BBEE Regulations.
Furthermore, all stakeholders that are required to respond to any:
- allegations pursuant a compliant;
- any findings issued pursuant to an investigation;
- alignments of its major B-BBEE transactions following recommendations received from the B-BBEE Commission,
are permitted to submit these to the B-BBEE Commission within 30 calendar days following the end of the lockdown period, notwithstanding any prescribed periods contemplated in the B-BBEE Regulations.
Please contact ENSafrica’s B-BBEE practice group if you require any assistance with your B-BBEE compliance requirements.
Reviewed by Sanjay Kassen, head of ENSafrica’s B-BBEE practice group.
Parusha Desai Valodia
Senior Associate | Corporate and Commercial | B-BBEE practice group
+27 82 560 4129
Covid-19, also known as the Coronavirus, is an infectious disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) that was declared a pandemic by the World Health Organization on 11 March 2020. The disease has since been reported in over 190 countries.
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