National Liquor Authority
Information Circular 1 2007
Guidelines to Commit to BEE
Section 10 of the Broad-based Black Economic Empowerment Act (B-
BBEEA) “creates a statutory obligation on every organ of state and
public entity to take into account and, as far as reasonably
possible, apply any relevant code of good practice issued under
the Act to determine qualification criteria for issuing licenses,
concessions or other authorizations in terms of the law”.
Section 13 of Liquor Act 59 of 2003 (the Act) complements the BBBEE Act
by requiring prospective and current registrants to commit to BEE. In
considering the application, the NLA needs to consider and evaluate these
BEE commitments. However, neither the Act nor the regulations stipulate
how and to what extent the commitments should be made or evaluated.
The Liquor industry also, has not developed an industry transformation
charter yet, that sets standards for BEE commitments. In the meantime,
the National Liquor Authority (NLA) will rely on the BEE Codes of Good
Practice to evaluate commitments made by the registrants or applicants.
2. Commitments to BEE
All non-exempted firms are expected to make their commitments in terms
of the BBBEEA and its Codes of Good Practice.
the applicant/registrant provides commitments to BEE, such
commitments should be measurable. A plan for the implementation of
such commitments should also clearly be outlined. In addition, the
applicant/registrant may be required to acquire a compliance certificate
from an accredited BEE verification Agency as a condition for registration.
If the applicant/registrant does not commit to BEE, the National Liquor
Authority (NLA) may require the applicant/registrant to provide a 1-3 year
comprehensive BEE plan in accordance with the Broad Based Black
Economic Empowerment Act and the Codes of Good Practice within a year
from the d