new developments on property charter front   
15 September 2008

The Charter, which was signed in March 2006, was gazetted under Section 12 of the Act in October 2007. At the time, the document was developed in alignment with the DTI’s existing codes of good practice, which has subsequently evolved. “This,” the media release says “has necessitated that certain aspects of the Property Charter be revised for gazetting under Section 9, which specifically addresses the codes of good practice that form the basis for every sector charter.”

The BBBEE Act provides for each sector to develop and adopt a consistent set of calculations and methodologies based on the generic definitions and codes of good practice stipulated by the DTI. The existing Property Charter is largely aligned with these codes, except for certain specific items: new methodologies exist for the calculation of employment equity and control, for procurement and for enterprise development and skills.  There are also additional elements to be included, namely the recognition of the disposal of property to BEE companies by established companies, as well as development in underdeveloped areas.

These amendments and additions will be captured in the sector codes of the updated Section 9 Property Charter.

Musa Ngcobo, Chairman of SAPOA’s Transformation Committee, says that SAPOA accepts that with the changes in personnel at the DTI, ideas have evolved. “This is not the first or the last time that we will be faced with changes,” he says. “The Act prescribes that we should promote with the national transformation agenda, ie the DTI’s codes of good practice. SAPOA supports the Property Charter because it promotes constructive communication with the DTI as a custodian of transformation.”

Portia Tau-Sekati, CEO of the Property Sector Charter Council, explains that once a Section 9 application has been submitted, it must be signed by the Minister of Trade and Industry and then released for public comment for a 60 day period. All comments will then be analysed and addressed before final gazetting. “Once the Charter is gazetted under Section 9, all member of the sector will be verified against this sector charter rather than against the generic BEE codes,” she says.  Ngcobo notes that from the outset, there has been general unity among the property players/stakeholders in developing a sector charter rather than using the generic codes.
 
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