BBBEE Commissioner condemns companies fronting skills development for scorecards

Broad-Based Black Economic Empowerment (BBBEE) Commissioner Zodwa Ntuli has condemned companies that are fronting skills development just to improve their scorecards. The Commissioner says this undermines the objectives of black economic empowerment.

The Commission has also raised concerns about the slow pace of transformation and black ownership in the country.

BBBEE requires that companies should equip people from previously disadvantaged backgrounds with skills to enable them to be employable, but some companies put graduates on their payroll without ensuring that they are properly trained and in some instances, no training is provided.

Ntuli says the Commission is currently investigating companies that front.

“You find that in most cases, the skills are not linked. Some companies are just ticking the box to improve their scorecards.”

Companies are supposed to contribute 6% toward skills development on a yearly basis, but only about 50% of this budget is utilised.

The Department of Trade and Industry has proposed that this figure should be increased to 10% to enhance skills development.

The Commission says black ownership levels in the country are unacceptable.

“As black people, we only own around 25% of the economy and most of it is not even direct ownership.”

The Commission has acknowledged that more money is needed to assist students that are excluded from universities and to upskill the unemployed to be more employable.