The Broad-Based Black Economic Empowerment Amendment Act No.46 of 2013 is now law.

The amendment act according to the Department of Trade and Industry (dti) aims to strengthen the implementation of B-BBEE and its reporting across the economy, as well as to put in place mechanisms to deal with non-compliance.

The act has several objectives, including aligning it with other legislation that deals with B-BBEE and the Codes of Good Practice. It also seeks to establish the B-BBEE Commission to create an institutional environment for monitoring and evaluating B-BBEE.

Some of the key material amendments in the act refer to the following:

– Aligning the act and the codes, which comprises an interpretation clause extended to include a trumping provision that stipulates that the B-BBEE Amendment Act will trump any law that was in force prior to the commencement date of the act.

– The establishment of the B-BBEE Commission, which will be created as an entity within the administration of the dti, headed by a Commissioner appointed by the Minister. The commission will be responsible for overseeing, supervising and promoting adherence to the act, as well as the monitoring and evaluation of B-BBEE.

– Offences, penalties and prohibitions in relation to fronting practices and misrepresentation of the B-BBEE status of an enterprise. The amendment act sets clear penalties, which include a minimum penalty of 10 years imprisonment (and/or a fine) or if the offender is not a natural person, a fine of 10% of its annual turnover.