Policy

Inside Balwin Properties’ Non-Compliant “BEE” Status

Image link: http://www.sacommercialpropnews.co.za/thumbnail.php?file=articles/De_Velde_Somerset_West_269774768.jpg&size=article_medium

A lot of attention was brought towards property giant, Balwin Properties, three weeks ago. This was surrounding the Mooikloof Mega City saga which brought light to the B-BBEE status of the company.

Their B-BBEE Scorecard, which is available on their website, gives insights into their non-compliant status. Despite having existed in South Africa for many years, according to their latest B-BBEE certificate issued on the 2nd of October 2020, Balwin Properties does not have any black senior managers. They also have no black executive directors.

While it has become a “norm” that companies who score less points in higher tiers of management tend to make up their B-BBEE points in junior management positions, that is not the case with Balwin Properties.

These poor workforce diversification stats could greatly affect Skills Development points because if you do not have enough black people to train, you will not be able to reach your targets. Balwin Properties only scored 1.55 points out of 8 points for their expenditure on learning programmes for black people.

While the property giant managed to use black property service providers in their projects, their overall procurement from B-BBEE compliant businesses was only just over half of what is required. They recorded no initiatives to grow black businesses but managed to make contributions towards socio-economic development initiatives.

On face value, this could seem like a total disregard for transformation, but there could be other underlying factors such as not enough evidence being supplied for empowerment interventions that did take place. Also, there could be questions around the integrity of the verification process as we often see in many B-BBEE audits.

1 Comment

  1. Its wrong they need to empower our black people so our president.hi don’t care about blacks. But we vote him to be in power.if it was black company they call if corruption. But because its white company its business. We are tired of this

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