Monday, October 15, 2007

South Africa: Property Sector BEE Charter Gazetted

THE property sector transformation charter, which aims to place 25% of SA's property sector in black hands in five years, was gazetted by the government last Friday.

Andy Tondi, consultant to the property charter council -- set up to oversee property charter implementation -- yesterday confirmed the charter had been announced.

This comes at a time when Employment Equity Commission chairman Jimmy Manyi is calling for the abolition of SA's sector charters, saying they have shielded business from genuine transformation. He criticised the latest results of the banking and financial sector review published on Monday, saying it showed the industry was not sincere about transforming itself.

Manyi said sector charters should be abolished and all transformation matters should fall under the trade and industry department's code of good practice on broad-based black empowerment.

South African commercial property association Sapoa, a property charter council member, said yesterday it would take its cues from the public works ministry and trade and industry department.

"If the public works minister (Thoko Didiza) has differing views on the processes we are following, those views will flow down to us through the charter council," said Sapoa CEO Neil Gopal.

Sapoa has about 900 members, including top ranking property and insurance firms and property owners and managers.

Tondi said the charter council still needed to decide on a "recognition date" for black economic empowerment deals and transformation targets.
(Originally posted in the Business Day)
25%... of total area, of the total value? And what is to happen if the target is not met? Forced sales? What does all this mean?

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