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DTi withdraws changes to Statement 500: SED

The Department of Trade and Industry (the dti) announces the withdrawal of Statement 500 of gazette number 35754 issued on 5 October 2012- Revised Broad Based Black Economic Empowerment Codes of Good Practice.

The decision comes after several stakeholders expressed concern that Statement 500 has been interpreted to mean that charities will be adversely affected, resulting in rising anxiety for charity and beneficiary organisations. The fact that the dti announced previously that the department will not raise the bar and correct any unintended interpretation upon completion of the public consultation period closes on Wednesday, 5 December 2012, has not eased this anxiety. The department therefore concluded that withdrawing the Statement immediately would be the most appropriate response.

In practice this means no change to the Socio Economic Developments elements.

Source: www.dti.gov.za

This means that the suggestion that only charities or organisations with 100% black beneficiaries would be able to benefit from SED contributions has been retracted and the current framework which suggests at least 75% of beneficiaries should be black will remain as is under the revised Codes.

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